Rays Power Infra Files DRHP with SEBI for INR 1,150-Crore IPO

Solar solutions provider Rays Power Infra Ltd. has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise about INR 1,150 crore through an initial public offering.

The issue will include a fresh issue of shares worth INR 900 crore and an offer for sale (OFS) of shares valued at INR 250 crore by the promoters and an existing shareholder.

According to the draft papers, promoter Ketan Mehta will offload shares worth up to INR 98.2 crore, while co-promoters Pawan Kumar Sharma and Sanjay Garudapally will each sell shares aggregating INR 73.6 crore. Another shareholder, Vivek Jain, will divest shares worth INR 4.6 crore. The proceeds from the fresh issue will be used by the company, while the money raised from the OFS will go directly to the selling shareholders.

The company has outlined clear objectives for the use of IPO proceeds. A major portion, around INR 500 crore, will be invested into its wholly owned subsidiary Rays Green Energy Manufacturing Pvt. Ltd. to part-finance the establishment of a 1.5 GW PV solar n-type TOPCon G12R cell manufacturing facility at Mohasa-Babai Industrial Area in Narmadapuram, Madhya Pradesh. Another INR 200 crore has been earmarked for meeting incremental working capital needs, while the balance will be directed towards general corporate purposes.

The board of directors of Rays Power Infra approved the IPO plan on September 20, 2025, and shareholder approval was obtained on the same day. Subsequently, the promoters passed resolutions on September 25, 2025, authorizing the offer for sale component. The company has also kept the option of raising up to INR 180 crore via a pre-IPO placement, which, if undertaken, would reduce the size of the fresh issue. Ahead of the IPO, the promoters and promoter group collectively hold close to 90 percent of the company’s equity capital.

As of July 31, 2025, Rays Power Infra had commissioned 50 renewable energy projects with a total capacity exceeding 1.3 GW The company also reported an order book of over INR 8,000 crore, underlining its strong execution pipeline. Its material subsidiaries include Rays Green Energy Manufacturing Pvt. Ltd. and Shining Sun Power Pvt. Ltd., which play a key role in its renewable energy and manufacturing operations.

The IPO will be carried out through the 100 percent book-building process in compliance with SEBI’s Issue of Capital and Disclosure Requirements (ICDR) Regulations. The shares will be allocated across Qualified Institutional Buyers (QIBs), Non-Institutional Investors (NIIs), and Retail Individual Investors (RIIs), along with a small employee reservation portion. The equity shares, having a face value of INR 2 each, will be listed on both the BSE and the National Stock Exchange of India (NSE) following in-principle approvals from the exchanges.

The offer will be managed by Anand Rathi Advisors Ltd. and Pantomath Capital Advisors Pvt. Ltd. as the book running lead managers, while Bigshare Services Pvt. Ltd. will act as the registrar to the issue.

By tapping the capital markets, Rays Power Infra aims not only to strengthen its balance sheet but also to expand into solar cell manufacturing, an area seen as critical to India’s renewable energy ambitions and domestic manufacturing push.