PMEA Solar Tech Solutions IPO: Filed DRHP with SEBI

PMEA Solar Tech Solutions Limited submits DRHP with SEBI and will be coming up with its public issue in the upcoming time; the public issue will be offering a 100% book-built offer. This upcoming IPO is offering a fresh issue worth up to Rs 600 crore of equity shares and an offer for sale of up to 1.12 crore equity shares. The total aggregate size of a public issue in rupees and the number of equity shares have not yet been disclosed by the company. The face value mentioned by the company is Rs 10 per each. This new IPO issue is being made through the book-building process with a reservation of less than 75% of the new offer reserved for Qualified Institutional Investors, not more than 15% reserved for NII and not more than 10% reserved for Retail Individuals. The opening and closing dates of this IPO have not yet been disclosed, and the price band at which you can bid for this IPO will announced soon by the company.

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About PMEA Solar Tech Solutions Limited

PMEA Solar Tech Solutions Private Limited is a private limited company incorporated on April 21, 2006, in Mumbai, Maharashtra. The firm deals with the product lines of auto component inputs like lighting fitting components and other sheet metal products. In FY 2023, the revenues of the firm were above INR 500 crores with EBITDA growth of about 19.73%. The authorized capital for the company is INR 150 crore, while the paid-up capital is about INR 112.41 crore. PMEA is an active company managed by directors - Sandeep Navinchandra Sanghvi and Vishal Navinchandra Sanghvi. Its last Annual General Meeting was carried out on September 15, 2023.

PMEA Solar Tech Solutions IPO Objectives

The company proposed in the drhp to utilize the net proceeds from the fresh issue for various purposes including Rs 119.54 crore into funding capital expenditure for the setting up of certain manufacturing facilities undertaken through investment in our wholly owned Subsidiary, PMSS; Rs 120.45 crore into funding of capital expenditure requirements of our company towards purchase of machinery/equipment and Rs 240 crore for repayment or prepayment, in full or in part, of all or a portion of certain outstanding borrowings availed by our Company and investment in our wholly owned Subsidiaries, PMSS and Tapovan, for repayment or prepayment in full or in part, of all or a portion of certain outstanding borrowings availed by PMSS and Tapovan. (As per Prospectus by the company to the SEBI)

Financials of PMEA Solar Tech Solutions

For the FY ending March 31, 2024, the company showed significant growth from what was reported for March 2023. Assets increased by 53.5%, from Rs 604.39 crore in March 2023 to Rs 927.67 crore in March 2024. The revenue nearly doubled, as it increased by 87.3% between Rs 800.79 crore in March 2023 and Rs 1,500.20 crore in March 2024. Profit after tax greatly increased by 277.7%, as it grew from Rs 27.44 crore in March 2023 to Rs 103.64 crore in March 2024. Total borrowing also increased by 63.4%, from Rs 297.71 crore to Rs 486.51 crore between the same periods. An increase like this indicates that their financial performance in such metrics is very good.

Lead managers and Registrar of PMEA Solar Tech Solutions IPO

The IPO is managed by IIFL Securities Limited and ICICI Securities Limited, which is the book-running lead manager of this public issue. The company has appointed Link Intime India Private Limited as the registrar for this public issue.

Promoters of PMEA Solar Tech Solutions

Samir Pravin Sanghavi, Kapil Pravin Sanghavi, Vishal Navinchandra Sanghvi and Sandeep Navinchandra Sanghvi are the identifiable promoters (s) of the company. They collectively held 99.60% of the company’s shares. However, post-IPO changes in their shareholding have not yet been disclosed.

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