Just over three months after it was backed by a bunch of investors, including a former Goldman Sachs India head, renewable energy company Rays Power Infra Pvt Ltd has closed a follow-on fundraising round.
Rays Power said in a release Wednesday that it has closed a Rs 127 crore equity funding round from a set of high-net-worth individuals (HNIs), family offices as well as partners in alternative investment funds. It didn't name the investors. This round brings its total fundraise to Rs 200 crore over the past few months.
While the company did not specify the stake acquired by investors, it said that “despite the significant infusion of capital” it “managed to maintain a dilution of less than 5% in this round.”
The fresh fundraising comes as Rays Power gets ready to file its papers for a listing on the stock exchanges via an initial public offering (IPO) later this year. The company intends to file its Draft Red Herring Prospectus (DRHP) in the last quarter of the year. It had earlier filed one in December last year. The company later scrapped the original DRHP and said that it would come up with a new draft document for a larger fundraise at a better valuation.
Rays Power also said it plans to keep raising more capital every year, aiming to grow at a compounded rate of over 50% in the coming years.
In April, VCCirle had reported that former Goldman Sachs chief executive officer Vijay Mohan Karnani, who founded Vimana Capital last year, joined a few others to invest Rs 54 crore in Rays Power. The other investors in that round included Kamlesh N Shah, who manages a construction business, stock market investor Rakesh Laroria and Ashok Kumar and Tushar Anand from the Alkem Pharma family.
As per the company's DRHP filed in December last year, the IPO was to raise Rs 300 crore via a fresh issue of shares and included an offer for sale of 29.5 lakh shares by the promoters. The company’s managing director Ketan Mehta was to sell 14.47 lakh shares and Sanjay Garudapally and Sanjay Kumar Sharma were to offload 7.78 lakh shares each.
Rays Power, a player in the solar engineering, procurement and construction (EPC) and turnkey solution sector, said in that DRHP that as of October last year it had a confirmed order book of Rs 1,842 crore and that it was looking at a Rs 2,300 crore order book in 2024-25.
Rays Power was founded in 2011. Since then, it has implemented power projects in excess of 1,200 MW across Uttar Pradesh, Uttarakhand, Karnataka, Punjab, Telangana, Maharashtra, Orissa, Rajasthan and Tamil Nadu in India and also in Bangladesh and Vietnam.
