By bno – Kolkata Office

Rays Power Infra, one of India’s leading renewable energy developers, has lodged preliminary papers with the Securities and Exchange Board of India (SEBI) for a proposed initial public offering worth up to INR11.5bn, as the company seeks to strengthen its position in the country’s rapidly expanding clean energy sector, POWERLINE reports.

According to the draft red herring prospectus, the offering will comprise a fresh issue of shares totalling INR9bn, alongside an offer-for-sale of INR2.5bn by existing promoters and a shareholder. According to the report, the company intends to allocate roughly INR5bn from the proceeds to Rays Green Energy Manufacturing, its wholly owned subsidiary, to help finance a 1.5 gigawatt solar cell production facility in the state of Madhya Pradesh. A further INR2bn has been earmarked to bolster working capital, with the balance supporting general corporate objectives.