Rays Power Infra IPO – Everything You Need to Know About the ₹1,150 Crore Issue

The renewable energy story in India is getting brighter, and Rays Power Infra IPO is one of the latest additions to that momentum. If you’ve been following India’s green energy transition, you’ve probably come across the name Rays Power Infra—a company that has quietly built a strong presence in the solar EPC (Engineering, Procurement, and Construction) space. Now, it’s stepping into the public markets with an ambitious ₹1,150 crore initial public offering.

Let’s break down what this IPO is about, what the company does, and what investors should keep an eye on.

About Rays Power Infra Limited

Rays Power Infra Limited, founded in 2011, is a leading integrated solar power solutions provider in India. The company designs, develops, constructs, and maintains renewable energy projects—mainly solar—across India and a few global markets. Its business model is asset-light, meaning it focuses on project execution and services rather than owning heavy infrastructure.

In simple terms, Rays Power Infra builds solar plants for others, ensuring everything from design to delivery is taken care of. Over the years, it has executed projects across 14 states in India and a few international locations.

According to its financial filings, the company recorded revenues of ₹887.3 crore in FY25, compared to ₹1,125.9 crore in FY24 and ₹248.7 crore in FY23. Profit after tax for FY25 stood at ₹75.8 crore, down from ₹234 crore in FY24, largely due to project execution timing and input cost fluctuations.

Despite the dip, Rays Power Infra maintains a strong balance sheet with a low net-debt-to-equity ratio of 0.04x, among the lowest in the industry—showing it runs a lean, financially disciplined business.

Details of the Rays Power Infra IPO

As per the Draft Red Herring Prospectus (DRHP), the Rays Power Infra IPO consists of a fresh issue and an offer for sale (OFS), aggregating up to ₹1,150 crore.

The company may also consider a pre-IPO placement of up to ₹180 crore. If it proceeds with that, the final IPO size will be reduced accordingly. The face value of each equity share is ₹2.

The IPO will be managed by Book Running Lead Managers (BRLMs), and the shares will be listed on both BSE and NSE.

Objects of the Offer

The company plans to use the net proceeds from the fresh issue for several purposes, including:

1. Funding working capital requirements – As Rays Power Infra continues to expand its project base, having sufficient working capital ensures smooth execution without financial strain.
   
2. Investment in subsidiaries – Some funds will be directed toward subsidiary and associate companies engaged in solar projects and renewable infrastructure.
   
3. General corporate purposes – For business expansion, debt repayment (if any), and improving operational efficiency.
   

This strategy indicates a focus on sustainable growth rather than just balance sheet cleanup.

Rays Power Infra IPO – Key Details at a Glance

Financial Performance Snapshot

Here’s a quick look at the numbers that matter (₹ in crore):

Compared to peers like Waaree Renewable Technologies, Sterling & Wilson, and KPI Green Energy, Rays Power Infra shows steady profitability and low leverage, making it a relatively safe bet in a high-growth but volatile sector.

Strengths of Rays Power Infra

• Asset-light business model: Keeps debt low and flexibility high.
  
• Diverse project portfolio: Spread across multiple states and client types (government, private, and industrial).
  
• Experienced leadership: Founders like Ketan Mehta and Pawan Kumar Sharma have over a decade of hands-on experience in renewable energy execution.
  
• Strong order book: An order book to revenue ratio of 5.23x suggests future revenue visibility and execution pipeline.
  
• Rising industry demand: With India targeting 500 GW of renewable capacity by 2030, EPC players like Rays Power Infra are positioned well.
  

Key Risks to Watch

No investment is without risk. Here are a few things potential investors should keep in mind before subscribing to the Rays Power Infra IPO:

• Project concentration: A large portion of revenue comes from a few major projects or clients.
  
• Fluctuating margins: Input costs (especially solar module prices) can affect profitability.
  
• Regulatory dependencies: Renewable energy is policy-driven, and changes in government incentives could impact margins.
  
• Litigation and legal exposure: The company has some pending civil cases, though none appear materially threatening at present.
  

Industry Context

India’s renewable energy sector is one of the fastest-growing globally. The government’s focus on solar energy, through initiatives like the National Solar Mission and Production Linked Incentive (PLI) schemes, continues to drive opportunities.

For companies like Rays Power Infra, this means a long runway of projects—especially as industries and state utilities turn to green power to meet sustainability goals.

Final Thoughts

The Rays Power Infra IPO represents more than just another listing—it’s part of India’s larger clean energy story. The company’s strong execution record, low debt, and expanding pipeline make it an interesting pick for investors who believe in the renewable energy growth theme.

However, short-term investors should note the cyclical nature of EPC revenues and potential fluctuations in profits. For long-term investors, especially those aligned with India’s energy transition story, this IPO might be worth keeping an eye on.

Bottom Line

If you’re considering investing in the Rays Power Infra IPO, look beyond just the hype. Study the fundamentals, check your risk appetite, and understand that renewable energy is a long game—one that’s just starting to heat up in India.