#RotomagEnertecIPO #BanyanTreeExit #DCmotors #SolarPumps #IndiaIPO #SEBI #CleanEnergy #PMKUSUM #GreenManufacturing #FreshIssue
Mumbai/Ahmedabad | Mfnewsdaily.in
Rotomag Enertec Ltd., a Gujarat-based industrial manufacturer and a key player in India’s solar ecosystem, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO). The proposed issue is designed to raise funds for growth while providing an exit route for its long-time private equity backer, BanyanTree Growth Capital.
The public issue is a combination of fresh equity and an Offer-for-Sale (OFS). Rotomag plans to mobilize approximately ₹500 crore through the issuance of new shares. Concurrently, promoters and existing shareholders, including Mauritius-based BanyanTree Growth Capital, will offload up to 2.4 crore shares through the OFS segment. The company has also announced plans to explore a pre-IPO round, aiming to raise up to ₹100 crore ahead of the main issue.
A Profitable Ride on the Green Wave
Rotomag Enertec’s filing highlights a period of explosive growth, demonstrating the commercial success of its focus on energy-efficient solutions. For the financial year ended March 2025, the company delivered exceptional results:
- Net Profit: The profit after tax (PAT) skyrocketed to ₹167.5 crore, marking a phenomenal 134.7% increase over the previous year’s ₹71.4 crore.
- Revenue: Revenue followed suit, surging 82.2% to ₹1,265 crore, up from ₹694.2 crore.
This performance places Rotomag at the forefront of the industrial and clean energy segments, a sector receiving massive tailwinds from government schemes like the PM-KUSUM program for solar pumps, which is driving India’s solar pump market to a projected CAGR of over 10% between 2025 and 2035.
Strategic Exit for BanyanTree
The IPO marks a crucial milestone for BanyanTree Growth Capital, which first invested in Rotomag Enertec in 2015, acquiring a 17.58% stake via equity and compulsory convertible debentures. The private equity firm is known for its mid-market focus and has historically logged impressive, multi-bagger returns from its exits. BanyanTree’s divestment via the OFS is expected to be another showcase exit, validating its long-term investment strategy in India’s booming manufacturing and infrastructure space.
Utilisation of Capital
The capital raised from the fresh issue is earmarked for critical financial and operational purposes, specifically for the redemption of non-convertible debentures, meeting working capital requirements to fuel future growth, and for general corporate purposes. The proceeds from the OFS will, as per regulations, be paid out to the selling shareholders.
Rotomag is a manufacturer of direct current (DC) motors, solar-powered pumps, and photovoltaic string inverters, operating six facilities in Gujarat and catering to a diversified client base across 10+ industries, including railways, wind energy, textiles, and material handling.
Equirus Capital, CLSA India, and JM Financial are the appointed merchant bankers managing the high-profile issue. The company’s successful filing sets the stage for a strong public debut in the coming months, provided it receives SEBI’s regulatory nod.
