GP Eco Solar will use the funds raised through the initial public offering (IPO) on NSE Emerge to fuel its growth in the solar sector. It will allocate around INR 12.45 crore for working capital and expansion, and invest INR 7.6 crore in subsidiary Invergy India for a new solar inverter assembly facility in Noida.
May 16, 2024
Noida-based GP Eco Solutions India (GPES) today announced its intention to raise INR 30-35 crore ($3.6 million-$4.2 million) through an initial public offering (IPO) on NSE Emerge. The company will utilize the amount towards its expansion in the flourishing solar power sector.
“The IPO funds will fuel our growth, with INR 12.45 crore allocated for working capital and expansion, and INR 7.6 crore will be invested in our subsidiary Invergy India for a new solar inverter assembly facility in Noida. The remaining funds will go towards general corporate purposes,” said Deepak Pandey, promoter and managing director, GPES.
GP Eco Solar offers comprehensive solar solutions, from distribution of premium solar inverters and solar panels to engineering, procurement, and construction (EPC) services for commercial and residential clients, and operation and maintenance (O&M) services to ensure optimal functioning of solar power plants. The company has a dominant presence in North India and plans to expand its operations into new geographies with an emphasis on increasing the scale of operations and growing its supply chain network.
The company also manufactures inverters, energy storage and EV charger solutions through its subsidiary Invergy India.
Invergy India has launched on-grid inverters eyeing demand from the residential segment with the launch of PM Surya Ghar Muft Bijli Yojana, a government subsidy scheme to drive residential rooftop solar adoption.
GPES promoters will sell 38.52% stake in GPES through the IPO. The balance 61.48% will remain with the promoters. Over the years, the company has registered a 50 times jump in revenues from INR 2 crore in FY 2016 to INR 101 crore in FY 2023. It recorded a revenue of INR 136 crore and net profit of over INR 7 crore in FY 2024.
“The Indian solar energy landscape is on the cusp of exponential growth, and GP Eco Solar is strategically positioned to capitalize on this exciting opportunity,” said Pandey. “This IPO is a significant milestone for us. By going public, we gain access to the resources necessary to drive innovation and make a significant contribution to India’s sustainable future. The proceeds will allow us to expand our manufacturing capabilities, strengthen our service offerings, and solidify our position as a key player in India’s clean energy transition.”
The global solar inverter market, valued at $7.7 billion in 2022, is projected to reach $17.9 billion by 2030, reflecting a promising CAGR of 8.8%. India’s solar power industry is anticipated to witness an even more remarkable growth, with a CAGR of 34.24% estimated between 2022 and 2027.
“This IPO presents an attractive opportunity for investors to partake in the growth trajectory of a company well-positioned to thrive in the burgeoning Indian clean energy market,” said Astik Mani Tripathi, promoter and director of GPES.
GPES IPO will comprise a fresh issuance of 32.76 lakh equity shares with a face value of INR 10 each. Corporate Capital Ventures is the book running lead manager for the issue while Bigshare Services Private Limited is the registrar. Corporate Capital Ventures completed a string of successful SME IPOs in recent past, including Alpex Solar, Rockingdeals, Accent Microcell, Oriana Power, Droneacharya and Crayons Advertising, among others.
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