Saatvik Green Energy Ltd IPO

About IPO

Saatvik Green Energy Ltd will soon launch its IPO, which comprises a fresh issue and an offer for sale. While the fresh issue size is ₹850 crore, the offer for sale for ₹300 crore. The company may raise to ₹170 crore before filing the final prospectus. This amount will reduce the fresh issue component proportionally.

Objectives of GNG Electronics Ltd

The Net Proceeds of the Fresh Issue are proposed to be utilised in the following manner:

• Debt Repayment: Prepayment or Scheduled Repayment ₹12.31 crore will be used for prepayment or repayment of outstanding borrowings availed by the company.

• Investment in Wholly-Owned Subsidiary: Debt or Equity Investment of ₹95.75 crore will be invested in Saatvik Solar Industries Private Limited (SSIPL) to repay/prepay borrowings. Manufacturing Facility Development of ₹552.745 Crore will be used to establish a 4 GW solar PV module manufacturing facility at Gopalpur, Odisha.

• General Corporate Purposes: The balance of the net proceeds will be allocated towards general corporate expenses. This includes operational contingencies, administrative costs, and growth opportunities. It will not exceed 25% of the gross proceeds.

Industry Outlook

Renewable energy installations in India, including large hydro, have grown significantly, reaching 191 GW by March 2024, compared to 63 GW in March 2012. Solar power accounted for 43% of this capacity, with 15 GW added in Fiscal 2024, including 3 GW from grid-connected rooftop projects. With an estimated solar energy potential of 750 GW, India continues to promote the sector through various incentives and schemes, fostering the development of solar power plants and contributing to its renewable energy goals.

Investments in the renewable energy generation segment are expected to double from approximately ₹7.9 trillion (over Fiscals 2019-2024) to approximately ₹19-20 trillion (over Fiscals 2025-30). Capacity addition from RE sources is expected to be 220-225 GW from Fiscals 2025 to 2030 (including large hydro and ESS), and 30-32 GW from coal-based plants sources over the same period.

Company Information

Saatvik Green Energy is a leading solar photovoltaic module manufacturer with an operational capacity of 1.8 GW as of June 30, 2024. It offers advanced Mono PERC and N-TopCon solar modules in mono-facial and bifacial options, catering to residential, commercial, and utility-scale projects.

In addition to manufacturing, Saatvik Green Energy provides comprehensive engineering, procurement, and construction (EPC) services for ground-mounted and rooftop solar installations. Its portfolio includes operations and maintenance services for executed projects, delivering end-to-end solar energy solutions. With a focus on innovation and quality, the company addresses diverse energy needs while supporting the growth of renewable energy adoption.

Risks of Saatvik Green Energy Ltd IPO

• Risk of Under-Utilisation of Manufacturing Capacities Underutilisation of manufacturing capacities poses significant risks to Saatvik Green Energy's business, financial performance, and growth. While high installed capacity enhances production potential, fluctuating product demand and mismatches in capacity utilisation may lead to inefficiencies like overproduction or underproduction.

• Challenges and Opportunities in Sustaining Growth Saatvik Green Energy has experienced significant growth, with revenue rising from ₹479.95crore in FY22 to ₹10,87.965 crore in FY24 and EBITDA surging from ₹14.766 crore to ₹1,56.844 crore during the same period. This growth is attributed to government initiatives for renewable energy, lower manufacturing costs, rising energy demand, and increased sales. However, sustaining this growth requires accurate market prioritisation, cost-effective procurement, skilled employees, and successful project execution. Challenges include financing expansion, regulatory hurdles, and competitive pressures. The company must optimise operations at its Ambala and proposed Odisha facilities to ensure smooth backward integration and sustained profitability in the future.

• Dependence on Third-Party Suppliers Saatvik Green Energy relies on third-party suppliers for key materials like solar cells, glass, and back sheets, purchased on a purchase order basis. The absence of long-term supply agreements exposes the company to risks like price volatility, currency fluctuations, and changes in government policies. Supply disruptions or cost increases could adversely affect operations, cash flows, and profitability. Maintaining stable supplier relationships and sourcing materials at competitive prices are critical for sustaining competitiveness and operating margins.

Anchor Investor Bidding Date TBA

IPO Registrar and Book Running Lead Manager

KFin Technologies Limited is the registrar of the Saatvik Green Energy Ltd IPO. The book-running lead managers are:

• Motilal Oswal Investment Advisors Limited
• Ambit Pvt Ltd
• DAM Capital Advisors Limited

Business Model

Saatvik Green Energy operates in the renewable energy sector, focusing on the manufacturing and sale of high-efficiency solar modules. The company integrates backwards into cell manufacturing and plans to expand its production capabilities to meet growing market demand. Its business model includes providing tailored EPC (Engineering, Procurement, and Construction) solutions, leveraging advanced manufacturing processes, and maintaining a customer-centric approach. By targeting domestic and international markets, Saatvik aims to capitalise on the increasing adoption of renewable energy solutions.

Company Growth Trajectory

Saatvik Green Energy Limited has shown robust growth by expanding its operations in renewable energy, particularly solar energy. The company has diversified through subsidiaries, strengthened its market presence in a high-demand sector, and leveraged experienced promoters and professional management. The company’s growth trajectory has increased from ₹480.29 crore in FY 2022 to ₹10,971 crore in FY24. The EBITDA of the company grew to ₹156.844 crore in FY 24 from 14.76 crore in FY 22. With its IPO, the company aims to raise funds for scaling operations, enhancing production capabilities, and supporting future growth initiatives aligned with global sustainability trends.

Company Market Position:

Saatvik Green Energy is among the leading module manufacturers in India in terms of operational solar photovoltaic (“PV”) module manufacturing capacity, with an operational capacity of about 3.80 gigawatt (“GW”) modules as of February 28, 2025. They are one of the fastest growing module manufacturing companies in India and have established themselves as a key player in India’s solar energy market. (Source: CRISIL Report) They are recognized as one of the few companies with capabilities in module manufacturing as well as engineering, procurement and construction (“EPC”). (Source: CRISIL Report) They are one of the leading EPC companies in India with 69.12 MW of an installed EPC base in Fiscal 2024.

How to check the Allotment Status of Saatvik Green Energy Ltd?

You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of KFin Technologies 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
• Select the Issue Name from the drop-down. The issue name is the company’s name, which is Saatvik Green Energy 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

To check status on the website of KFin Technologies Limited:

• Visit the website of KFin Technologies Limited Ltd
• Click on IPO Allotment Status
• Choose the name of the company from the ‘Select Company’ dropdown
• Enter any of these - PAN Number, Application Number, DP/Client ID, Account Number / IFSC
• Click on Submit to check the status

How to apply for Saatvik Green Energy Ltd?

Here are the steps to apply for Saatvik Green Energy Ltd IPO:

• Step 1: Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details - Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds. Step 5: Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.