Prozeal Green Energy IPO: Everything You Need to Know

Prozeal Green Energy Limited, a Gujarat-based solar EPC (Engineering, Procurement, and Construction) company, has filed IPO papers with SEBI to raise ₹700 crore from the capital markets. The IPO will consist of two components:

• Fresh issuance of equity shares worth ₹350 crore

• Offer-for-sale (OFS) of ₹350 crore by existing shareholders

The OFS will see promoters Shobit Baijnath Rai and Manan Hitendrakumar Thakkar offloading ₹168.5 crore worth of shares each. Additionally, investors AAR EM Ventures LLP, Jaya Chandrakant Gogri, Bhaveshkumar Bachubhai Mehta, and Manoj Mulji Chheda will sell shares worth ₹13 crore in total.

The promoters currently hold an 88.63% stake in the company, while public shareholders own 11.37%.

Pre-IPO Fundraising Plans

Before the IPO, Prozeal Green Energy may conduct a pre-IPO placement of ₹70 crore. If this round is successful, the fresh issue size will be reduced accordingly.

Business Overview: India's 4th Largest Solar EPC Firm

Founded in 2013, Prozeal Green Energy has positioned itself as India's fourth-largest solar EPC company by revenue (FY24). The company specializes in solar power project execution, with an impressive order book of ₹2,220.9 crore as of September 2024.

• Executed 182 solar power projects

• Total installed solar capacity: 783.98 MWp

• 99.48% of the order book consists of ground-mounted solar projects

In addition to solar EPC services, Prozeal Green Energy also provides:

• Operations and maintenance services for solar projects

• EPC services for electric vehicle (EV) charging infrastructure

IPO Fund Utilization

The company intends to allocate funds from the fresh issue as follows:

• ₹250 crore for long-term working capital requirements

• ₹19.5 crore for debt repayment

• Remaining funds for general corporate purposes

Financial Performance: Strong Growth in Profit & Revenue

Prozeal Green Energy has demonstrated exceptional financial growth, with a 4x jump in net profit and a 178% increase in revenue in FY24.

• FY24 Financials:

  • Net Profit: ₹92.2 crore (vs. ₹21.5 crore in FY23)

  • Revenue: ₹948.9 crore (vs. ₹341 crore in FY23)

• H1 FY25 (April-September 2024) Performance:

  • Net Profit: ₹51.6 crore

  • Revenue: ₹468.5 crore

Lead Managers & Listing Details

• Book Running Lead Managers (BRLMs):

  • Nuvama Wealth Management

  • SBI Capital Markets

• Stock Exchange Listing: Expected on BSE and NSE after SEBI approval.

Given the company's strong financials and order book, long-term investors looking for exposure in the renewable energy sector may find this IPO promising. However, short-term investors should wait for pricing details, GMP trends, and market conditions before subscribing.

The Current active IPO are Aten Papers & Foam Limited, Infonative Solutions Limited,Spinaroo Commercial Limited,Retaggio Industries Limited.

The Closed IPOs are  Identixweb Limited, ATC Energies System Limited, Shri Ahimsa Naturals Limited, Desco Infratech Limited.

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