Vikram Solar is one of India’s leading solar energy solutions providers. In a recent interview with Moneycontrol, Gyanesh Chaudhary, Vikram Solar's CMD, shared insights into the company’s expansion plans, including its entry into battery energy storage systems (BESS).
This strategic move aligns with India’s renewable energy goals and enhances the company’s position in the evolving energy market.
U.S. Expansion Plans Contingent On Policy Developments
The company is considering establishing a 3 GW solar cell and module manufacturing facility in Colorado, USA. However, this decision hinges on the policies of the current U.S. administration. The Inflation Reduction Act (IRA), introduced to promote renewable energy, will play a pivotal role in shaping these plans. Vikram Solar's leadership is closely monitoring the situation.
This strategic move aligns with India’s renewable energy goals and enhances the company’s position in the evolving energy market.
SEZ Amendment Bill: A Potential For Growth
Gyanesh Chaudhary emphasized the significance of the SEZ (Special Economic Zone) Amendment Bill.
This policy replaces the earlier proposed Development of Enterprises and Service Hubs (DESH) Bill of 2022. The anticipated changes in the SEZ framework are expected to stimulate substantial economic activity, particularly in manufacturing sectors like renewable energy.
Advocating For Robust Renewable Energy Markets
Chaudhary highlighted the need for a stronger government focus on creating robust markets for renewable energy. While initiatives like the PM Surya Ghar scheme have been successful, there's a notable gap in Renewable Purchase Obligation (RPO) compliance among power distribution companies.
Enhancing RPO adherence is crucial for absorbing excess renewable energy and fostering a green economy. The industry requires stringent measures to ensure compliance, vital for market stability.
Scaling up solar manufacturing capabilities
The need to scale solar manufacturing capabilities in India was also discussed. Chaudhary suggested that instead of numerous small-scale manufacturers, the industry should consolidate into a few large-scale players with significant capacities.
This approach would require a supportive ecosystem, including improved financing and logistics, to achieve substantial growth and establish India as a global leader in solar manufacturing.
Expanding Into Battery Energy Storage Systems
Diversifying into the BESS sector marks a significant step forward for Vikram Solar. The company plans to start with a 1 GW BESS facility, with intentions to scale up to 10 GW or more in the future.
This move aligns with global trends towards energy storage solutions, positioning Vikram Solar at the forefront of the renewable energy revolution.
Operational Capacities And New Developments
Currently, Vikram Solar is one of India’s leading solar module manufacturers, boasting an operational capacity of 3.5 GW. The company produces a variety of solar PV modules, including N-TOPCon, mono PERC, bifacial, and polycrystalline variants, across its facilities in Kolkata and Chennai.
Additionally, a new 3 GW solar cell and module plant is underway in Gangaikondan, Tamil Nadu, with the module facility set to launch this year and the cell manufacturing unit following next year.
IPO Plans And Future Growth
Vikram Solar has filed its draft red herring prospectus (DRHP) with SEBI to raise funds through an IPO. Vikram Solar IPO aims to raise ₹2,000 crore. This includes ₹1500 crore in fresh issues and 17.45 million shares by its promoter group.
The freshly generated funds will be used in the following ways:
A) New Manufacturing Facility: Rs 793.36 crores will be used for capital expenditure to invest in a wholly owned subsidiary, VSL Green Power Pvt Ltd., for establishing a 3000 MW solar cell and module manufacturing facility.
B) Expansion of Existing Manufacturing Facility: Rs 602.9 crores will be utilized for expanding the solar module manufacturing capacity from 3000 MW to 6000 MW.
C) Other general corporate purposes.
Also Read: Vikram Solar IPO: Date, Lot Size, Allotment Status.
Is Vikram Solar a good investment?
Considering Vikram Solar’s key projects, sound financials, and future plans, this solar PV manufacturing company ticks all the boxes for a promising investment. However, investors need to analyze the pros and & cons of each company before investing.
Currently, Vikram Solar is not listed in the stock market. Investors can buy pre-IPO shares and own Vikram Solar shares before they get traded in the listed market.
Buy Vikram Solar Unlisted Shares by clicking here. Investors can check the details of other pre-IPO shares at Stockify.
Vikram Solar FAQs
Q1: Is Vikram Solar public?
Currently, Vikram Solar is not yet listed on any stock exchange, so it is not public.
Q2: Is it good to invest in Vikram Solar?
Vikram Solar is one of the most actively traded shares in the unlisted market. You can invest in Vikram Solar unlisted shares.
Q3: Is it legal to buy unlisted shares of Vikram Solar in India?
Yes, this is 100% legal and safe to buy unlisted shares of Vikram Solar Ltd. However, this is applicable when you buy Vikram Solar Ltd unlisted shares from reliable and known unlisted share dealers. You can request a quote or trade online at Stockify; we are ready to assist you.
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