New Delhi, Sept. 21 -- Solar photovoltaic module maker Rayzon Solar Ltd has cut the size of its initial public offering by half and increased the amount it is raising through bank loans for a solar cell manufacturing facility.
The Surat, Gujarat-based company now intends to raise up to Rs 750 crore ($78 million) through a fresh issue of shares in the IPO, down from Rs 1,500 crore when it filed its draft red herring prospectus with the Securities and Exchange Board of India in June. The company disclosed the revision through an addendum to its DRHP.
The IPO doesn't include any offer for sale by existing shareholders.
VCCircle had first reported in December 2025 that Rayzon was looking to go public at a valuation in excess of Rs 10,000 crore. At the time, the company's chief financial officer Ankit Shah had denied VCCircle's report, calling it "incorrect and based on rumours only".
The smaller issue size reshapes how Rayzon will finance its key growth project: a 3.5 GW solar cell manufacturing facility using TOPCon (tunnel oxide passivated contact) technology, being built by its wholly owned subsidiary Rayzon Energy Pvt Ltd near Surat. The total project cost has risen to Rs 1,947.3 crore from the Rs 1,265 crore VCCircle had earlier reported the company was setting aside from IPO proceeds.
With less equity capital coming from the public issue, Rayzon will now deploy only about Rs 570 crore of net proceeds toward the plant - roughly half of what it had originally planned to draw from the IPO - and lean far more heavily on debt to bridge the gap.
Rayzon Energy has tied up a term loan of Rs 1,350 crore from Union Bank of India, of which it will draw down up to Rs 1,100 crore with the remaining Rs 250 crore of the sanctioned facility being downsized. As of late August, it had deployed close to Rs 386 crore toward the project through internal accruals and initial loan drawdowns.
Commercial production at the new cell facility is now expected to begin in January 2027, a roughly one-month slip from the company's earlier schedule, which it has attributed to a shortage of labour and heavy monsoon rainfall that delayed civil construction work.
Despite the altered funding mix, Rayzon's operational scale-up remains on track. The addendum states that the company is now the third-largest solar PV module manufacturer in India, with a capacity of 11.3 GW as of early August, up from the roughly 6 GW capacity the company had cited when it first filed its draft papers in June.
Rayzon was founded in 2017 by Chirag Nakrani and Hardik Kothiya as a partnership firm, converted into a private limited company in 2022, and became a public limited company last year. Besides solar modules and cells, the group also runs an aluminium processing business through affiliate Rayzon Industries.
Rayzon joins a clutch of solar and renewable energy companies that have gone public or are eyeing the capital markets in recent years, competing with the likes of Waaree Energies, Premier Energies, NTPC Green Energy and ACME Solar. Other renewable energy players circling the public markets include Tata Power's renewable energy arm, CPPIB-backed ReNew Power, Blueleaf-backed Jakson Green, Juniper Green Energy, Goldi Solar and Jupiter International.
Published by HT Digital Content Services with permission from VC Circle.