Vikram Solar Ltd will shift the bulk of its upcoming capacity expansion to Tamil Nadu as the company targets an aggressive ramp-up to 17.5 GW of solar modules and 12 GW of solar cells by FY27, officials said.

Currently, the company operates 4.5 GW of module capacity, with its largest facility of 3.5 GW located at Falta SEZ in West Bengal and 1.3 GW at Oragadam near Chennai. The bulk of new projects will now be set up at Vallam and Gangaikondan in Tamil Nadu, including a major integrated solar cell and module facility involving substantial capital expenditure.

In West Bengal, Vikram Solar will invest Rs 4 billion to add 2 GW of modules at its Falta unit, taking the site’s capacity to 5.5 GW. “By FY27 we are aiming to ramp up to 17.5 GW of modules and backward integration of 12 GW of cells,” CMD Gyanesh Chaudhary said.

The first phase of expansion, comprising 6 GW of modules and 3 GW of cells, will be financed through IPO proceeds, debt, and incentives. Tamil Nadu will provide about Rs 9 billion in subsidies over the lifecycle of the projects.

Vikram Solar’s Rs 20.79 billion IPO, which opened on 19 August and closes on 21 August, has already been oversubscribed 4.4 times. The company raised Rs 6.21 billion from 43 institutional investors through the anchor book on 18 August. The issue includes a fresh issue of Rs 15 billion and an offer for sale by promoters, reducing promoter holding from 77.6 per cent to 63.1 per cent.

The company has also secured Rs 17 billion in debt financing from IREDA, while Rs 5.28 billion under the PLI scheme and Rs 9 billion in Tamil Nadu subsidies will support its projects.

Founded in 2006, Vikram Solar is among India’s largest solar module makers and is now building a fully integrated solar ecosystem with backward linkages into cell manufacturing.