The company also has plans to invest about Rs 200 crore to Rs 300 crore in the next five years.
New Delhi: Gautam Solar, a Delhi-based solar equipment manufacturer, plans to come out with an Initial Public Offering (IPO) in the next three to four years to meet its funding requirements, the company’s managing director Gautam Mohanka told ETEnergyWorld.
“We are seeing strong demand for our products and given that the government is focussing on ‘Made in India’ solar panels, we see a requirement of multiplying 10 times from our current production capacity, which will require funds,” he said.
The company has a 250 megawatt (MW) of solar manufacturing capacity and has four R&D centres in Haridwar which manufacture components such as solar lights and pumps.
“IPOs are a good market right, however, we would be looking into them after three to four years… So the effects of the COVID-19 pandemic on the economy would have worn off by then,” he said.
Mohanka also said that the company is set to upgrade to 500 MW capacity by the financial year 2021-22 and has plans to invest about Rs 200 crore to Rs 300 crore in the next five years for scaling up their solar panel plant to 2.5 gigawatt capacity.
“The investment for 500 MW capacity will be somewhere between Rs 30 crore to Rs 40 crore… The funding for it will be a mix of long-term debt and internal accruals,” Mohanka added.
The business environment is positive for domestic players and going forward, policy support and superior tariffs will keep the investment prospects in renewable capacity addition quite strong, according to Girishkumar Kadam, senior vice-president and co-group head, ICRA.
“Overall business environment for domestic cell and module manufacturers remains favourable, given the policy focus, as evident from the schemes announced over the past two years to provide demand visibility as well as through both tariff and non-tariff barriers,” said Kadam.
Apart from this, speaking about the upcoming trends, Mohanka said that the market will gradually shift towards new technologies such as the 12 bus bar-based solar panels, mono – PERC, half-half, bifacial, flexible solar panels for EV, etc.