Solar component manufacturer Vishakha Renewables has filed its draft papers for a Rs 1,250-crore IPO. The company, backed by the Adani Group, plans to use a major portion of the proceeds to pay down its Rs 2,700.5-crore debt. Investors will look at the company's debt-reduction plan and its ability to scale manufacturing in the competitive solar sector.
Vishakha Renewables, a company that makes key components for solar energy projects, has filed its draft red herring prospectus with the market regulator, SEBI, to launch an initial public offering of Rs 1,250 crore. The offering consists of a fresh issue of shares worth Rs 1,250 crore and an offer-for-sale of 1.81 crore shares. The firm, which is backed by the Adani Group, aims to use Rs 900 crore from the fresh issue to pay down its existing debt.
Business and Manufacturing Scale
Based in Mundra, Gujarat, the company manufactures components needed for solar modules, including solar glass, back sheets, and ethylene vinyl acetate encapsulants. As of March 2026, the company operates four manufacturing facilities. Data from industry analysts suggests the firm is among the larger manufacturers of solar glass in India, with a current daily production capacity of 660 tonnes. It is also currently working to add another 1,260 tonnes per day of capacity, which is in the final stages of completion.
Financial Position and Debt
The company reported a revenue of Rs 1,893.4 crore for the fiscal year ended March 2026, marking a 24.8% increase compared to the previous year. Profitability also improved significantly, with the company reporting a profit of Rs 173.4 crore, up from Rs 56.5 crore in the prior year. Despite this growth, the company carries a substantial debt burden of Rs 2,700.5 crore. Using a large portion of the IPO proceeds to repay debt is a core strategy to improve the balance sheet and reduce interest costs.
Adani Group Connection
The ownership structure shows deep ties to the Adani ecosystem. Adani Properties is the largest shareholder with a 39.14% stake, while individual promoter Jigish Nagindas Doshi holds 30.92%. Including other family members like Gautam, Rajesh, and Vinod Adani, the total promoter holding stands at 75.61%. The company has also indicated it might consider a pre-IPO placement of up to Rs 250 crore, which, if completed, would reduce the size of the fresh issue.
Sector Context and Risks
The solar component industry in India is growing as domestic manufacturers benefit from the government's push for local solar manufacturing. However, the sector also faces risks, including high competition from imports and potential changes in government policies regarding solar energy. For investors, the most important areas to track will be the company’s ability to manage its remaining debt after the IPO, the successful commissioning of its planned capacity expansion, and its ability to maintain profit margins amid price competition in the solar market. The success of the IPO will largely depend on these factors and the overall demand for solar components in the coming years.