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Fujiyama Power Systems (UTL Solar) Power Files for IPO to Fund Expansion Plans

Noida-based solar solutions provider Fujiyama Power Systems (UTL Solar) has taken a significant step toward its growth ambitions by filing a Draft Red Herring Prospectus (DRHP) for an Initial Public Offering (IPO). The IPO includes a fresh issue of shares worth up to Rs 700 Cr and an offer-for-sale of 20 million shares with a face value of Rs 1 per share.

The company plans to allocate the proceeds from the IPO as follows:

• Rs 250 Cr: Establishing a new manufacturing facility in Ratlam, Madhya Pradesh.
• Rs 300 Cr: Repaying outstanding debts.
• Remaining funds for general corporate purposes.

Fujiyama may also raise up to Rs 140 Cr through a pre-IPO placement, potentially reducing the size of the fresh issue.

Fujiyama operates three manufacturing facilities across India:

• Greater Noida, Uttar Pradesh: Produces 439 MW solar modules, 1,143 MW solar inverters, and 45 MWh lithium-ion (Li-ion) batteries.
• Parwanoo, Himachal Pradesh: Specializes in solar power conditioning units and uninterruptible power supplies (UPS).
• Bawal, Haryana: Manufactures tubular batteries with a capacity of 1,318 MWh.

The company plans to:

• Add a 600 MW solar module manufacturing unit in Dadri, Uttar Pradesh.
• Expand its Greater Noida facility with additional capacities of 600 MW solar modules, 600 MW solar inverters, and 500 MWh lithium-ion batteries.
• Establish an integrated manufacturing facility in Ratlam, Madhya Pradesh, capable of producing 2,000 MW solar modules, 2,000 MW solar inverters, and 2,000 MWh lithium-ion batteries.

Under the Madhya Pradesh Industrial Promotion Policy 2014, Fujiyama plans to seek a 40% subsidy, amounting to Rs 150 Cr for its Ratlam facility’s capital expenditure.