Indian solar module manufacturer Gautam Solar plans to raise Rs10bn ($118m) through an initial public offering (IPO) to fund a solar cell manufacturing unit, as reported by Financial Express.

It aims to increase manufacturing capacity from 1GW to 5GW by April 2025.

Gautam Solar managing director Gautam Mohanka stated: “Right now we are at a 1GW capacity of solar modules and we have taken a 60-acre land parcel in Bhiwani [Haryana]. We aim to be 5GW by April 2025.

“It is coming in various phases. In the first phase, the pilot production started from November 12 and slowly we are adding on to it.”

By January 2025, two additional production lines will increase capacity to 3GW, with a target of 5GW by April 2025.

The acquired land can support 12GW capacity, allowing for potential future expansion.

Mohanka continued: "If the market demand is strong, we’re prepared to add 1GW per month next year." An investment upwards of Rs1.5bn is required for every 1GW of module manufacturing capacity.

While the company prefers funding expansion through internal accruals, it is considering an IPO within the next 12 to 18 months (up to mid-2026) to raise funds for the solar cell manufacturing unit.

Mohanka also mentioned exploring various states for incentives and infrastructure support.

The company intends to double its revenue from Rs. 7.2bn in the fiscal year 2024 to Rs. 14bn.

Mohanka noted a market shift towards domestic manufacturing due to government policies, with India aiming to tender 50GW annually as part of its efforts to indigenise the entire supply chain.

Gautam Solar is considering future ventures in green hydrogen and independent power production. The company is monitoring the export market, particularly in the US, as a potential growth area.

Mohanka added: "If the US market proves favourable post-Trump, we may look into exports as a priority."