Prozeal Green Energy files DRHP with SEBI for ₹700 cr IPO

PROZEAL Green Energy Limited, the fourth largest solar engineering, procurement, and construction company in India in terms of revenue from operations for Fiscal 2024, has filed its Draft Red Herring Prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO) worth up to ₹700 crore.

The public offer comprises a fresh issue of face value of ₹2 each aggregating up to ₹350 crore and an offer for sale of ₹350 crore, consisting of up to ₹168.5 crore by promoters Shobit Baijnath Rai and similar amount by Manan Hitendrakumar Thakkar, and up to ₹3 crore by investor AAR EM Ventures LLP, ₹2 crore by Bhaveshkumar Bachubhai Mehta, ₹6 crore by Jaya Chandrakant Gogri, and up to ₹2 crore by Manoj Mulji Chheda.

The company says it proposes to utilise the proceeds from the offer towards funding long-term working capital, investment in subsidiaries for repayment/pre-payment of borrowings, and general corporate purposes.

Prozeal Green Energy delivers end-to-end renewable energy solutions, including EPC of solar energy projects on a turnkey basis for clients in the commercial and industrial sectors. While the company executes independent solar EPC projects, its focus is on implementing projects based on the “plug-and-play” solar park model.

As of September 30, 2024, its order book stood at ₹2,220 crore, of which ₹2,209 crore or 99.48% was for ground-mounted solar power projects. Prozeal’s revenue from operations increased from ₹287 crore in fiscal 2022 to ₹948 crore in fiscal 2024, a CAGR of 81.77%. EBITDA grew from ₹11.5 crore to ₹124 crore during the same period, a CAGR of 228.71%. The company’s profit increased from ₹10 crore to ₹92.2 crore in the same period, representing a CAGR of 202.64%.

The company provides clients with customised solutions, including options for CapEx or Opex models, land purchase or lease, and the selection of suitable technology. Since its inception in 2013 through September 30, 2024, Prozeal Green Energy has successfully executed 182 solar power projects with a total installed capacity of 783.98 MWp across 17 states in India and one overseas location (Nepal) for 125 clients.

Prozeal Green Energy's EPC clients include prominent organisations such as Torrent Power, AM Green Energy, GHCL, Alembic Pharmaceuticals, Asahi Songwon Colors, Mark Alloys Private, Ajay Costspin Industries, Pashupati Costspin, and ACG Associated Capsules. Nuvama Wealth Management and SBI Capital Markets are the book-running lead managers to the issue.