IPO Details
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IPO Size
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Schedule of PMEA Solar Tech Solutions Ltd IPO
Start date
End date
Allotment of bids
Refund Initiation
Listing on exchange
Issue Highlights
Initial public offering of up to [] equity shares of face value of Rs. 10 each of the company (equity shares) for cash at a price of Rs. [] per equity share (including a share premium of Rs. [] per equity share) (offer price) aggregating up to Rs. [] crores (offer). The offer comprises a fresh issue of up to [] equity shares of face value of Rs. 10 each aggregating up to Rs. 600.00 crores (fresh issue) and an offer for sale of up to 11,235,600 equity shares of face value of Rs. 10 (offered shares) aggregating up to Rs. [] crores, comprising up to 2,808,900 equity shares of face value of Rs. 10 aggregating up to Rs. [] crores by Samir Pravin Sanghavi, up to 2,808,900 equity shares of face value of Rs. 10 aggregating up to Rs. [] crores by Kapil Pravin Sanghavi, up to 2,808,900 equity shares of face value of Rs. 10 each aggregating up to Rs. [] crores by Vishal Navinchandra Sanghvi and up to 2,808,900 equity shares of face value of Rs. 10 each aggregating up to Rs. [] crores by Sandeep Navinchandra Sanghvi (together, the selling shareholders, and such offer for sale of equity shares by the selling shareholders, the offer for sale). The offer will constitute []% of the post-offer paid up equity share capital of the company. The company, in consultation with the brlms, may consider a further issue of specified securities as may be permitted under applicable law, aggregating to Rs. 120.00 crores (the pre-ipo placement), the pre-ipo placement, if undertaken, will be at a price to be decided by the company, in consultation with the brlms. If the pre-ipo placement is completed, the amount raised pursuant to the pre-ipo placement will be reduced from the fresh issue, subject to compliance with rule 19(2)(b) of the scrr. The pre-ipo placement, if undertaken, shall not exceed 20% of the size of the fresh issue. Prior to the completion of the offer, the company shall appropriately intimate the subscribers to the pre-ipo placement, prior to allotment pursuant to the pre-ipo placement, that there is no guarantee that the company may proceed with the offer or that the offer may be successful and will result in the listing of the equity shares on the stock exchanges. Further, relevant disclosures in relation to such intimation to the subscribers to the pre-ipo placement (if undertaken) shall be appropriately made in the relevant sections of the red herring prospectus and prospectus. The face value of the equity share is Rs. 10 each. The offer price is [] times the face value of the equity shares. The price band and the minimum bid lot will be decided by the company.
About PMEA Solar Tech Solutions Limited IPO
PMEA Solar Tech Solutions Limited IPO is an IPO of TBA. It consists of an offer for sale of up to 11,235,600 equity shares and a fresh issue aggregating up to ₹600 crore. The shares will be allotted on TBA. The credit of shares to the demat account will take place on TBA, and the initiation of refunds will take place on TBA.
Objective of PMEA Solar Tech Solutions Limited IPO
- Funding capital expenditure for the setting up of certain manufacturing facilities undertaken through investment in their wholly owned subsidiary, PMSS.
- Funding of capital expenditure requirements of the company towards the purchase of machinery/equipment.
- Repayment or prepayment, in full or in part, of all or a portion of certain outstanding borrowings taken by the company and investment in their wholly owned subsidiaries, PMSS and Tapovan, for repayment or prepayment in full or in part, of all or a portion of certain outstanding borrowings taken by PMSS and Tapovan.
- General corporate purposes.
PMEA Solar Tech Solutions Limited IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band (₹) | TBA |
Existing Shares to be Sold | Up to 11,235,600 equity shares |
Fresh Issue | ₹600 crores |
EPS (₹) For the year ended March 31, 2024 | 9.22 |
PMEA Solar Tech Solutions Limited IPO Share offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs Share Offered | Not more than 50% of the Issue |
Non-Institutional Investors (NIIs) | Not less than 15% of the Issue |
Retail Individual Investors | Not less than 35% of the Issue |
Industry Outlook
India's power sector is undergoing a major transformation, driven by urbanisation, industrial expansion, and the increasing integration of renewable energy. This is fueling significant growth in the switchgear market, which was valued at USD 1200 crores in FY2024 and is projected to reach USD 1800 crores by FY2029E.
Solar capacity surged at approximately 24% CAGR to exceed 1,419 GW. In CY2023, global annual renewable capacity additions rose by 56% to nearly 475 GW, the highest growth in two decades. In India, renewables accounted for ~24% of electricity generation in FY2024 (up to February 2024). The Indian government aims to meet 50% of the country's energy needs with renewables by CY2030, as stated during COP-26.
Here's a quick overview of the different sectors that utilise solar tech solutions:
India's market for solar tracking and mounting products used in tracker systems exhibits a distinct trend. The market initially demonstrated an upward trend from US$ 22 crores in fiscal 2019 to US$ 81 crores in fiscal 2024, growing at a CAGR of 29%. This positive trend is expected to continue, with projections estimating the market to reach US$ 342.9 crores by fiscal 2029, growing at a CAGR of 33%.
India's automotive component industry is poised for substantial growth, projected to reach a market size of USD 20000 crores by FY2029E.
The Indian lighting industry is set for substantial growth, projected to reach USD 47 crores by FY2029E from USD 36 crores in FY2024, with a CAGR of 5.2%.
The Indian furniture market is forecasted to emerge as a significant industry, generating USD 510 crores in revenue by FY2024. It is expected to sustain steady growth, with a projected CAGR of 6.7% from FY2024 to FY2029E.
The electric vehicle (EV) market in India is undergoing remarkable expansion, driven by a confluence of factors. Starting from 145,989 units sold in FY2019, the market experienced a substantial increase in FY2024, reaching an impressive 0.17 crore units.
Company Information
PMEA Solar Tech Solutions Limited has established itself as a leading manufacturer of solar tracking and module products (Source: F&S Report) with the capability to manufacture a wide range of stock-keeping units (SKUs). As of March 31, 2024, they offered 72 SKUs within their solar business, which includes 56 SKUs of module mounting assembly and 16 SKUs of rolled products.
They also manufacture a wide range of components for switchgears; (ii) components for original equipment manufacturers (“OEMs”) in the automotive sector; (iii) lighting solutions; (iv) furniture primarily for large OEMs; and (v) partition panels primarily for pharma, and the healthcare sector.
Strengths of PMEA Solar Tech Solutions Limited IPO
One of the leading solar tracking and mounting product manufacturer in India well positioned to capitalise on industry tailwinds.
They are among the leading manufacturers in the solar tracking and mounting products sector in India with an annual installed capacity of 16 GW of Module Mounting Assembly and 6 GW for rolled products, as of March 31, 2024. (Source: F&S Report) As of March 31, 2024, they had an estimated market share of 9% of the overall domestic market for solar tracking and mounting products used in solar trackers.
Wide product offerings across solar and other businesses.
Their solar business includes the manufacturing and sale of module mounting assembly and rolled products. Their solar tracking and mounting products are used as structural components to install solar PV modules for solar power projects and provide structural integrity (Source: F&S Report) for solar panels to optimise their exposure to sunlight.
Their product portfolio for their other businesses includes manufacturing a wide range of switchgear components, automotive components primarily for OEMs, lighting solutions, furniture primarily for large OEMs, and partition panels primarily for pharma and healthcare sectors.
During the last three fiscals, they have launched new products such as damper assembly, squeeze splice, drive system kit, saddle bracket, and TTAs in their solar business.
Strong relationships with a wide customer base across solar business and other businesses.
Over the years, they have established longstanding relationships with a diversified set of customers in India and other countries, including the United States. For solar tracking and mounting products, their key customers include Nextracker, the global market leader in solar tracking systems and solutions consistently for the past seven years (Source: F&S Report). They have also diversified their customer base and attracted new customers such as Sterling & Wilson Renewable Energy in FY 2024, and the sales amounted to ₹ 2,86.864 crores, representing 24.13% of their revenue from their solar business during FY 2024.
Manufacturing facilities with modern technologies and multiple competencies catering to varied requirements.
Their manufacturing facilities are equipped with a diverse set of machines and modern technology to manufacture quality solar tracking and mounting products with precision and efficiency. Their advanced press machines, which include capacities from 30 tonnes to 600 tonnes, enable them to handle the processing of diverse materials and perform tasks with accuracy. They utilise specialised equipment such as special-purpose machines (SPM) for the durability and reliability of their solar tracking and mounting products.
Their certifications for some of their manufacturing facilities include ISO 14001:2015, ISO 9001:2015, and ISO 45001:2018. They also undertook the Amfori BSCi social audit and received a “B” grade from TUV Rheinland, which reflects their commitment to ethical business practices. Further, they have been awarded an ESG audit certificate by Nextracker.
Risks of PMEA Solar Tech Solutions Limited IPO
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Their business is dependent on certain key customers, in particular, Nextracker LLC. Loss of any of these customers or inability to continue their existing relationships with key customers could have an adverse effect on their business, results of operations, financial condition, and cash flows.
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Their business is significantly dependent on the regulatory and policy environment affecting the solar energy sector in India and the countries to which they export their products.
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They are dependent on third-party vendors for the supply of raw materials to manufacture their products. Any disruptions in the supply or availability of materials and components of the appropriate quality standards or fluctuations in their prices may have an adverse effect on their business, results of operations, and financial condition.
PMEA Solar Tech Solutions Limited IPO Financials
Peer Comparison
| Parameter | PMEA Solar Tech Solutions Limited | Goodluck India Limited | Hi-Tech Pipes Limited |
|---|---|---|---|
Total Income for the year ended March 31, 2024 (₹ in crores) | 1521.861 | 3537.726 | 2700.471 |
P/E | NA | 26.50 | 71.17 |
EPS (Basic) (₹) | 9.22 | 46.41 | 3.25 |
Return on Net Worth (%) | 43.29 | 11.82 | 7.62 |
NAV per share (₹) | 21.30 | 392.76 | 42.55 |
Anchor Investor Information
The Anchor Investor Bidding Date shall be one working day prior to the bid/offer opening date.
IPO Registrar and Book Running Lead Managers
Book running lead managers:
IIFL Securities Limited ICICI Securities Limited
Registrar for the IPO is Link Intime India Private Limited
Business Model
The company earns its revenue through the following sources:
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Manufacturing a wide range of solar tracking and mounting products, which include (i) module mounting assembly and (ii) rolled products, which are used in utility-scale and ground-mounted solar power projects.
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Manufacturing a wide range of (i) components for switchgear (ii) components for original equipment manufacturers (OEMs) in the automotive sector; (iii) lighting solutions; (iv) furniture primarily for large OEMs and (v) partition panels primarily for pharma, and healthcare sector.
Company Growth Trajectory
During the last three fiscals, on account of the increase in their installed capacity and actual production resulting in an increase in their solar business revenues, their revenue from operations increased at a CAGR of 63.89% to ₹1500.20 crores in fiscal 2024 from ₹558.54 crores in fiscal 2022. Their Operating EBITDA increased at a CAGR of 88.50% from ₹58.93 crores in fiscal 2022 to ₹88.72 crores in fiscal 2023 and further increased to ₹209.39 crores in fiscal 2024, while their Operating EBITDA Margin improved from 10.55% in fiscal 2022 to 11.08% in fiscal 2023 and further improved to 13.96% in fiscal 2024.
Their revenue from operations from other businesses grew at a CAGR of 28.95% between fiscal 2022 and fiscal 2024 to ₹311.33 crores in fiscal 2024 from ₹187.177 crores in fiscal 2022.
Company Market Position
They are among the leading manufacturers in the solar tracking and mounting products sector in India with an annual installed capacity of 16 gigawatts (GW) of module mounting assembly (Module Mounting Assembly) and 6 GW of rolled products (Rolled Products), as of March 31, 2024.
As of March 31, 2024, they had an estimated market share of 9% of the overall domestic market for solar tracking and mounting products used in solar trackers.
Between October 2019 and April 2024, PMEA Solar Tech Solutions Limited completed over 200 shipments to Nextracker LLC, positioning itself as the fourth-largest supplier to the company. They achieved revenue from operations of INR 1500.2 crores in FY2024, reflecting its strong market position.
PMEA Solar Tech Solutions Limited Company Profit & Loss
| Parameter | FY22 | FY23 | FY24 |
|---|---|---|---|
Revenue from operations (₹ crores) | 558.537 | 800.79 | 1500.204 |
Profit Before Tax (₹ crores) | 57.524 | 40.041 | 142.135 |
Net profit / (loss) (₹ crores) | 44.82 | 27.44 | 103.639 |
EBITDA (₹ crores) | 91.863 | 98.341 | 231.044 |
EPS (₹) | 3.99 | 2.44 | 9.22 |
PMEA Solar Tech Solutions Limited Cash Flow
| Parameter | FY22 | FY23 | FY24 |
|---|---|---|---|
Profit before tax (₹ crores) | 57.524 | 40.041 | 142.135 |
Net Cash from Operating Activities (₹ crores) | 22.814 | 34.613 | 9.462 |
Net Cash from Investing Activities (₹ crores) | 75.588 | 24.893 | 106.432 |
Net Cash from Financing Activities (₹ crores) | 126.613 | 57.226 | 122.849 |
Cash and Cash Equivalents (₹ crores) | 28.211 | 2.280 | 7.104 |
How To Check Allotment Status of PMEA Solar Tech Solutions Limited IPO?
You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of the registrar Link Intime India Private Limited. To check the status on the BSE website:
- Visit the BSE website
- Click on “Investor Services” and choose “Application Status Check”
- Choose the issue type — Equity or Debt (Equity in this case)
- Select the issue name from the drop-down. The issue name is the company’s name, which is PMEA Solar Tech Solutions Limited
- Enter your application number or PAN number
- Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status
Follow these steps to know the allotment status on the registrar’s website:
- Visit the Link Intime India Private Limited website
- Choose “Public Issues” from the “Investor Services” drop-down
- Select PMEA Solar Tech Solutions Limited from the drop-down
- Enter your PAN number or Application number
- Click on “Submit” to know the allotment status
PMEA Solar Tech Solutions Ltd IPO FAQs
What is the PMEA Solar Tech Solutions Limited IPO?
The PMEA Solar Tech Solutions Limited IPO has an issue size of TBA. The IPO opens for subscription on TBA and closes on TBA.
Who is the Registrar for PMEA Solar Tech Solutions Limited IPO?
Link Intime India Private Limited is the registrar for this IPO.
Where can I read more about PMEA Solar Tech Solutions Limited business?
You may read more about PMEA Solar Tech Solutions Limited and its IPO from the company’s draft red herring prospectus (DRHP) here: (SEBI | PMEA Solar Tech Solutions Limited - DRHP)
