IPO Alert: Rayzon Solar Files DRHP with SEBI to Raise ₹1,500 Crore

Rayzon Solar has filed a draft red herring prospectus (DRHP) with SEBI for a ₹1,500 crore initial public offering (IPO). The issue is entirely a fresh issue of equity shares with a face value of ₹2 each. There is no offer-for-sale component by promoters. Reports suggest that the pre-IPO placement of up to ₹300 crore may be considered, which could reduce the final issue size.

Use of Proceeds

Out of the ₹1,500 crore, ₹1,265 crore is planned to be invested in its wholly owned subsidiary, Rayzon Energy Private Limited. These funds will be used to partially finance a 3.5 GW solar cell manufacturing facility in Kathvada, Gujarat, which will use TOPCon technology. The remaining funds will be used for general corporate purposes.

Manufacturing and Expansion

Rayzon Solar started operations in 2017. Its manufacturing capacity has grown from 40 MW in 2018 to 6.00 GW as of March 2025. The company runs two production units in Karanj and Sava, each with 3.00 GW capacity. An additional 2.00 GW capacity at Sava is expected to be operational by October 2025.

Subsidiary Projects

Through Rayzon Energy, the company is setting up a 3.5 GW solar cell facility, expected to start operations in FY 2027. Another subsidiary, Rayzon Industries, is developing an aluminium extrusion and anodising unit with a capacity of 19,800 MT per year in Sava, Gujarat. This is expected to be ready by July 2025.

Clients and Operations

The company supplies modules to over 500 clients, including Panasonic Life Solutions, Mahindra Solarize, and ACME Cleantech. It participates in government-linked projects like PM-KUSUM and PM Surya Ghar Yojana. As of May 2025, Rayzon had an order book of 3.60 GW and a distribution network across 20 states.

Read more: SBI Eyes Debt Fundraising Initiative by August Through a Tier II Bond Issue!

Rayzon Solar Financials

Rayzon Solar's Revenue grew from ₹261.65 crore in FY22 to ₹1,272.85 crore in FY24. EBITDA rose from ₹13.47 crore to ₹101.41 crore in the same period. For the 9 months ending December 2024, revenue stood at ₹1,957 crore with a PAT of ₹239.03 crore.

Conclusion

The equity shares are proposed to be listed on both BSE and NSE. Book-running lead managers include SBI Capital Markets, Ambit, and IIFL Capital Services. KFin Technologies is the registrar for the offer.

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