SAEL Industries Files Draft Papers For IPO- Know Key Details Of The Public Issue From The DRHP

SAEL Industries IPO: Several companies have tapped the primary market for funds in the second half of 2025. However, the primary market still has steam left as more and more companies are approaching the market regulator to launch their public issues. On November 4, SAEL Industries filed its Draft Red Herring Prospectus (DRHP) for its public issue.

SAEL Industries seeks to raise Rs 4,575 crore through its public issue. While the dates and the price band have not been announced yet, here’s a look at some of the key details related SAEL Industries IPO from the DRHP;

SAEL Industries IPO: Issue Size

SAEL Industries seeks to raise Rs 4575 via its book-building issue. SAEL Industries will make a fresh issue of shares worth Rs 3,750 crore and an offer for sale (OFS) of shares valued at Rs 825 crore. As per the company’s DRHP, Norwegian investment fund, Norfund will participate in the OFS and reduce its stake in SAEL Industries.

SAEL Industries IPO: Reservation

SAEL Industries has set aside up to 75 per cent of the issue size for qualified institutional buyers, 10 per cent for retail investors and 15 per cent for non-institutional investors.

SAEL Industries: Key Financials

In the quarter ended June 30, 2025 SAEL Industries’ total income stood at Rs 276.31 crore, the company posted a net loss of Rs 58.31 crore and a negative net worth of Rs 338.92 crore.

SAEL Industries total income for FY25 stood at Rs 730.52 crore increasing by over 24 per cent from Rs 587.01 crore in FY24. The company’s net loss widened to Rs 280.95 crore in FY25 from Rs 267.14 crore in FY24. The net worth of the company remained negative in FY25 at Rs 281.03 crore compared to a negative net worth of Rs 131.52 crore in the preceding fiscal.

SAEL Industries: Business Model

SAEL Industries has an integrated renewable energy based business model. The company’s business functions by generating electricity via renewable energy sources and selling the power generated to various clients. The company generates electricity from solar power and agri waste-to-energy sources.

The company also undertakes solar component manufacturing. SAEL acts as an Independent Power Producer (IPP)and is India's largest agri waste-to-energy operator by capacity as per its DRHP. The company turns agricultural waste from farmers into biomass, using it as fuel to generate electricity. The company also develops, owns, and operates utility-scale and rooftop solar projects across multiple Indian states.

SAEL Industries: Key Competitors

SAEL industries’ primary competitors include domestic and foreign conventional and renewable energy project developers and IPPs. The company competes with renewable energy project developers in India based on a number of differentiating factors in the industry, including the success of other alternative energy generation technologies (such as fuel cells, nuclear, hydropower and wind).

Some of the company’s listed competitors include Adani Green Energy, Acme Solar Holdings, NTPC Green Energy, ReNew Energy Group PLC, Premier Energies, Waaree Energies, and Vikram Solar.

SAEL Industries: Should You Invest

Some of the key strengths mentioned in SAEL Industries’s DRHP include:

• SAEL Industries is a leading renewable energy power producer in India, the company’s backward integration for solar projects and its diversified offerings position it to capitalise on industry tailwinds according to the DRHP.

• The renewable energy producer mentioned in its prospectus that it has a strong off-taker profile and long-term power purchase agreements which provide it stable revenue visibility.

• The company claims to have proven execution capabilities with in-house engineering, procurement and construction and operations and maintenance functions to optimize cost structures and increase efficiency.

Some of the key risks mentioned in SAEL Industries DRHP include:

• SAEL Industries mentioned in its DRHP that it has a history of net losses from continuing operations and negative net worth. The company has posted a net loss of Rs 583.11 million, Rs 2,809.48 million, Rs 2,671.41 million and Rs 846.14 million for the three months ended June 30, 2025 and Fiscals 2025, 2024 and 2023, respectively.

• The IPP mentioned in its DRHP that it depends on select off-takers for a significant portion of its revenues with its top five off-takers contributing to 94.63 per cent, 89.81 per cent, 93.12 per cent and 89.41 per cent of its revenue from operations in the three months ended June 30, 2025 and fiscals 2025, 2024 and 2023, respectively. Thus potential inability to retain off-takers or decrease in revenues can negatively affect business, results of operations, financial condition and cash flows.

• SAEL Industries said that the success of its agri waste-to-energy projects depends on the steady supply of fuel feedstock, which is subject to various uncertainties and risks, including the risk of procuring our fuel feedstock from a single supplier.

SAEL Industries IPO: Objective

SAEL Industries seeks to use the proceeds of the public issue for investment in its subsidiaries namely SAEL Solar P5 Private Ltd and SAEL Solar P4 Private for repayment or prepayment of outstanding borrowings and general corporate purposes.