Ahmedabad-based Soleos Energy Limited has filed its Draft Red Herring Prospectus (DRHP), dated September 30, 2026, with the Securities and Exchange Board of India (SEBI) and the stock exchanges for a main-board initial public offering. The largest single use of the fresh capital is a battery energy storage system (BESS) manufacturing plant in Mehsana district, Gujarat, which marks the solar EPC company’s move into storage hardware.
The Offer
The IPO comprises up to 2,00,00,000 equity shares of face value ₹5 each. Of these, up to 1,10,00,000 shares are a fresh issue and up to 90,00,000 shares are an offer for sale (OFS). The five promoters together offer 71,01,600 shares: Bhaveshkumar C Rathod (Chairman and Managing Director), Dhavalkumar Ghanshyambhai Jiyani, Parth R Rangholia, Aniket Rangholia and Vipul Rathod. Bhaveshkumar Rathod alone is selling up to 36,01,600 shares. Fourteen other shareholders offer the remaining 18,98,400 shares. The company may also undertake a pre-IPO placement of up to 20% of the fresh issue size, which would reduce the fresh issue by the same amount.
Not more than 50% of the offer is reserved for qualified institutional buyers, at least 15% for non-institutional bidders and at least 35% for retail individual bidders. Beeline Capital Advisors is the sole book running lead manager, MUFG Intime India is the registrar, and the shares are proposed to be listed on BSE and NSE. The price band and offer dates are yet to be announced.
Where the Money Goes
According to the DRHP, ₹11,360.03 lakh (about ₹113.6 crore) of the net proceeds will fund capital expenditure for a BESS manufacturing facility with an installed capacity of 2.20 GWh. A further ₹2,000 lakh (₹20 crore) is earmarked for repaying or prepaying certain borrowings. The balance will go towards general corporate purposes, capped at 25% of the gross fresh issue proceeds.
From a Pilot Line to a 2.2 GWh Plant
Soleos already operates a pilot-scale BESS unit at Gokul Industrial Park, Kubadthal (Daskroi taluka, Ahmedabad). It sits on 1,006 square metres of leased land and has a capacity of 100 MWh on a single-shift basis.
The proposed plant will come up at Survey No. 1683, Village Suraj, Jotana taluka, Mehsana district. The leased site covers 20,865 square metres, about twenty times the existing footprint, and the plant is designed for 2.2 GWh, a 22-fold jump in capacity.
The company lists further vertical integration into 2.2 GWh of BESS manufacturing among its core strategies, alongside expanding group captive solar projects and its asset management business. Promoter and Whole-time Director Parth Rangholia leads the BESS manufacturing operations.
Business Profile
The company was incorporated on January 11, 2017 as Soleos Solar Energy Private Limited and became a public limited company in February 2026. It describes itself as an integrated solar platform covering project development, financing coordination, EPC execution and long-term asset management, with BESS manufacturing as the newest addition.
Solar EPC dominates the business mix, contributing 87.20% of FY26 revenue from operations. Project development and consultancy contributed 7.42%, sale of solar products and equipment 4.77%, and total asset management 0.58%. In India, revenue comes mainly from Gujarat, Madhya Pradesh, Maharashtra and Bihar. Overseas, the company has served projects in England, Zimbabwe, Spain and Uganda.
Financial Performance
Restated consolidated financials show revenue from operations rising from ₹93.94 crore in FY24 to ₹221.84 crore in FY25 and ₹281.16 crore in FY26. Profit after tax, however, fell from ₹24.83 crore in FY25 to ₹21.48 crore in FY26 (FY24: ₹5.49 crore). EBITDA eased from ₹32.95 crore to ₹29.95 crore over the same year. EBITDA margin narrowed from 14.85% to 10.65%, and PAT margin from 11.19% to 7.64%.
The balance sheet has expanded quickly:
- Net worth rose to ₹198.96 crore in FY26 from ₹87.66 crore a year earlier.
- Total borrowings climbed to ₹101.92 crore from ₹28.30 crore, lifting the debt-equity ratio from 0.32 to 0.51.
- Net working capital days doubled from 94 to 190.
- Operating cash flow has been negative in each of the last three years, reaching (₹68.53 crore) in FY26.
- Order book stood at ₹1,632.76 crore at the end of FY26, up from ₹53.09 crore a year earlier and about 5.8 times FY26 revenue.
Key Risks Disclosed
The DRHP flags several risks relevant to the expansion. Most notably, it states that the company and its promoters lack relevant experience in BESS manufacturing. It adds that failing to develop the initiative in a timely and cost-effective manner could affect results.
Other disclosed risks include:
- Customer concentration: the top ten customers contributed 75.09% of FY26 revenue, and the largest alone contributed 21.49%.
- Supplier dependence: the company relies on third-party suppliers for modules, inverters and other equipment.
- Order book uncertainty: orders may be delayed or cancelled.
- Cash timing: there is a gap between upfront project spending and customer receipts.
What Comes Next
The DRHP is now subject to SEBI’s observations. Once cleared, Soleos will file a Red Herring Prospectus with the Registrar of Companies, disclosing the price band, lot size and bid dates. The key factors to watch are:
- conversion of the ₹1,632.76 crore order book,
- the trend in working capital and borrowings, and
- execution of the Mehsana plant.
Together, these will decide whether Soleos can move successfully from solar contracting into storage manufacturing.
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