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Solarworld Energy has entered into a joint venture (JV) with Rays Power to establish, develop, construct, commission, and operate a 2.4 GW solar photovoltaic (PV) cell manufacturing facility at Mohasa-Babai in Narmadapuram district, Madhya Pradesh. Both parties will hold a 50% stake in the project.
The announcement also marks a change in the proposed utilisation of proceeds from the company’s fresh issue. The funds were originally earmarked for investment in Solarworld Energy’s subsidiary, Kartik Solarworld Private Limited (KSPL), to part-finance a 1.2 GW solar TOPCon cell manufacturing facility at Pandhurana, Madhya Pradesh.
The company now proposes to deploy the unutilised amount towards its investment in Rays Green, the JV entity. The proposed 2.4 GW facility will be jointly developed, constructed, commissioned, operated, and managed by Rays Power and Solarworld Energy across approximately 41.30 acres at Mohasa-Babai, Narmadapuram district.
Following its successful IPO and listing, Solarworld Energy raised ₹550 crore in September 2025. This included a fresh issue of 12,535,612 equity shares at ₹351 per share, generating approximately ₹440 crore in IPO proceeds.
The company also undertook a pre-IPO placement of 3,124,548 equity shares at an issue price of ₹352.05 per share, including a premium of ₹347.05 per share, aggregating to ₹110 crore in pre-IPO proceeds. In addition, a promoter selling shareholder offered 1,424,501 equity shares at ₹351 per share through an offer for sale, aggregating to ₹50 crore.
As disclosed in the prospectus, Solarworld Energy had proposed to invest ₹575.299 crore in its subsidiary KSPL to part-finance the establishment of the Pandhurana project. Of this amount, ₹5.18 crore had been deployed as of September 17, 2025.
The company had planned to utilise ₹420 crore from the Net Proceeds and Pre-IPO Proceeds for the Pandhurana project, while ₹101.678 crore was earmarked for general corporate purposes.
During fiscal 2025, Solarworld Energy deployed ₹22.575 crore from the Net Proceeds and Pre-IPO Proceeds for general corporate purposes. However, the proposed ₹420 crore investment in KSPL for part-financing the Pandhurana project remains unutilised.
The company now plans to redirect this unutilised amount towards its investment in Rays Green and, consequently, the new 2.4 GW manufacturing project.
Solarworld Energy entered into the joint venture arrangement with Rays Power Infra Limited on September 7, 2026. Under the agreement, Solarworld Energy will hold 50% of the equity share capital of Rays Green, with Rays Power Infra holding the remaining 50%.
Instead of the previously proposed investment in KSPL, the company intends to use the unutilised portion of the fresh issue proceeds to invest in Rays Green. The investment will part-finance the establishment of a 2.4 GW n-type TOPCon G12R solar PV cell manufacturing plant.
The project will be located at the Manufacturing Zone for Power and Renewable Energy Equipment, Plot No. P-23, Mohasa-Babai Industrial Area, Narmadapuram, Madhya Pradesh.
A total of 41.30 acres has been allocated for the facility. The land was allotted to Rays Green through a letter dated February 14, 2025, issued by the Madhya Pradesh Industrial Development Corporation (MPIDC). Rays Green subsequently entered into a registered lease deed with MPIDC on March 4, 2025.
The latest funding structure is expected to improve capital efficiency. The 2.4 GW facility has an estimated project cost of approximately ₹1,000 crore, translating into a capital cost of around ₹417 crore/GW.
The scale of the proposed facility is expected to generate economies of scale, lower per-unit manufacturing costs, and improve the project’s overall competitiveness.
The project site has relatively flat topography and is located in an area with established trunk infrastructure, which is expected to reduce land development requirements and associated execution costs. Its location within a solar manufacturing cluster could also provide ecosystem benefits, including access to skilled manpower, technical expertise, and supporting infrastructure.
Rays Green executed the lease deed for the project land with MPIDC on March 4, 2025, and has obtained consent to establish from the Madhya Pradesh Pollution Control Board. Construction activities have already commenced at the site, which is expected to facilitate an earlier start of operations and shorten the overall implementation timeline.
The project is also eligible for electricity at a subsidised tariff of approximately ₹4.30 per unit under the applicable government scheme, potentially providing an additional operating cost advantage.
Rays Green was incorporated under the Companies Act, 2013, on April 5, 2022. The company is engaged in the manufacturing, designing, developing, trading, importing, exporting, assembling, operating, and maintaining of renewable energy products. It is currently developing the 2.4 GW TOPCon solar PV cell manufacturing facility in Narmadapuram, Madhya Pradesh.
Rays Green has authorised and paid-up share capital of ₹1 lakh each, divided into 10,000 equity shares of ₹10 each. The company recorded a turnover of ₹437.63 crore during FY2025-26.
The proposed facility will manufacture solar PV cells using TOPCon technology. Rays Green currently operates in India and has no overseas operations as of the date of the disclosure.
The Joint Venture Agreement (JVA) was executed simultaneously with the Securities Subscription Agreement (SSA). These agreements establish the terms governing the parties’ rights and obligations relating to the project’s operation, control, management, governance, financing, and rights over its output.
The investment is intended to create a backward integration platform for high-efficiency solar PV cell manufacturing. It is expected to strengthen Solarworld Energy’s renewable energy value chain, secure long-term access to solar cells, reduce its dependence on third-party suppliers, and create greater business synergies.
The target entity’s business is aligned with Solarworld Energy’s existing operations and complements its solar EPC and module manufacturing businesses.
Solarworld Energy also proposes to subscribe to equity shares of Rays Green for an aggregate amount of up to ₹100 crore. Of this, ₹26.82162 crore will constitute the initial subscription amount.
The equity shares will be issued at ₹21,287 per share, comprising a face value of ₹10 and a securities premium of ₹21,277 per share. The initial subscription covers 12,600 equity shares.
The aggregate financial commitment under the agreements is capped at ₹520 crore. This comprises an equity subscription of up to ₹200 crore in Rays Green, with Solarworld Energy subscribing up to ₹100 crore and Rays Power subscribing up to ₹100 crore.
In addition, Solarworld Energy will provide a loan of up to ₹320 crore to Rays Green to finance the project.
Under the financing arrangement, Solarworld Energy will extend the loan to Rays Green on an arm’s-length basis to fund part of the project cost for the 2.4 GW solar cell manufacturing facility.
The financing will be provided in accordance with the agreed business plan and governed by definitive loan documentation. The total loan amount of up to ₹320 crore will be disbursed in one or more tranches, depending on the project’s funding requirements.
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