An earlier version of this story mentioned Sachin Tendulkar as an investor in Rayzon Solar’s maiden funding round, based on details from the company’s regulatory filing (MGT-14). However, the latest filing (PAS-3) does not show any share allotment to Tendulkar. Accordingly, we have updated the story and removed his name.
Below is the original story, updated based on the latest regulatory filing (PAS-3), with a few tweaks for clarity.
Solar panel manufacturer Rayzon Solar has raised Rs 137.8 crore (approximately $16.2 million) in a new round from over seven dozen individual investors including Harshadkumar Patel, and Divyang Patel, among others.
The board at Rayzon Solar has issued 58,89,092 equity shares at an issue price of Rs 234 to raise the aforementioned sum, its regulatory filing accessed from the Registrar of Companies (RoC) shows.
Harshadkumar Patel led the round with an investment of Rs 26.8 crore followed by Divyang Patel, who is contributing Rs 5 crore. Around 80 other individual investors are also participating in the round with smaller cheques
The proceeds will be used to support the company’s business expansion and future growth plans, including meeting its long-term and short-term funding needs, as well as for general corporate purposes.
At the same time, the company has also launched a new ESOP Plan 2025, which will consist of 1,00,00,000 employee stock options, filings stated.
Each ESOP option will be converted into equity shares. According to Entrackr’s estimates, the newly added ESOP plan is valued at approximately Rs 234 crore (around $27.5 million).
The Surat-based company will be valued at around Rs 7,158 crore or around $842 million post-allotment. This appears to be the maiden external funding round for the IPO-bound firm, as no prior funding history could be traced before this round. Importantly, the current valuation doesn’t account for the ESOP component.
Founded in 2017, Rayzon Solar operates on both B2B and B2C models, manufacturing high-efficiency solar PV modules for distributors, EPC companies, and end users. The company caters to residential, commercial, and utility-scale projects across India and international markets.
This funding round appears to be a pre-IPO raise, as the company is planning to go public and is expected to file its Draft Red Herring Prospectus (DRHP) soon, according to media reports.
For the fiscal year ending March 2024, Rayzon Solar reported an operating revenue of Rs 1,273 crore and a net profit of Rs 61 crore, according to its standalone financial statements filed with the RoC.
Rayzon Solar is set to become the latest next-generation solar technology company to go public. Recently, Solarium made its debut on the stock exchange through the SME route.
The rush to public markets is not a surprise in a segment that has recently enjoyed unprecedented visibility and margin enhancements.
From import duties to non tariff barriers like mandatory use of domestic modules, the solar manufacturing industry has seen a roaring return to profits and growth over the past two years. The perception of being one of the few shining stories for manufacturing pushed by the government has encouraged many to jump in, counting on continued support. And support there is, with even solar cells, the precursors to the final solar panels, set to get their own non tariff advantage from June 2026 with a make in India mandate.
Rayzon has been on a hyper drive since these measures came in, expanding capacity at a fast clip and going in for the kind of brand marketing the industry had rarely seen. The firm had even announced plans for a US manufacturing plant till ironically, Trump killed those plans with the cloud over refusing credits. We believe the good times may not last long enough, as overcapacity looms for both modules and cells soon in India. The China threat may not be visible, it is very much there as critical inputs and spares still come from there.
And don’t count out the fresh entry of Reliance (backed by PLI incentives as well) and extra capacity from Adani group, due later this year. All in all, a touch and go affair if you are an investor looking to make a quick buck.
