Subsidiary board approves 1.2 GW TOPCon solar cell facility; IPO proceeds partly re-directed

Subsidiary board approves a 1.2 GW TOPCon solar cell manufacturing facility.

Sat 10 Oct 2026

Estimated project cost

about ₹456 crore

Capacity approved

1.2 GW TOPCon solar cell manufacturing facility

Commercial production timeline

expected by April 2028

Project at a glance

• The Board of Directors of Oswal Solar Energy Private Limited (OSEPL), a wholly owned subsidiary, has approved plans to set up a 1.2 GW solar cell manufacturing facility based on TOPCon (Tunnel Oxide Passivated Contact) technology.
• Commercial production is expected to commence by April 2028.
• The entire output is intended for captive consumption by OSEPL's in-house solar module lines.

How the project is proposed to be funded

• Total project cost is estimated at approximately ₹456 crore.
• About ₹296 crore of this is proposed to be funded through debt.
• The balance of ₹159.85 crore is proposed to be funded from the unutilised IPO proceeds of ₹163.04 crore, which were originally earmarked for the Aluminium Frame Facility, the remaining 300 MW EVA Encapsulant Facility and the remaining 500 MW Solar Module Facility, through infusion in OSEPL.
• The Net Proceeds are proposed to be deployed towards the solar cell manufacturing facility by Financial Year 2028.

What the Board approved

• The Board of the Company, in its meeting held today, approved variation in the objects/terms of utilisation of the IPO proceeds and modification of the time limit for the utilisation of the IPO Proceeds.
• This is subject to the receipt of requisite statutory/regulatory approvals, including the approval of the Shareholders of the Company.

Why the company says it chose this route

• The Company evaluated long-term sourcing arrangements with established domestic cell manufacturers, including multi-year off-take commitments. The commercial terms available, covering both pricing and upfront security deposit requirements, were not aligned with the Company's assessment of long-term value or its approach to prudent working capital management.
• A comparative evaluation found that setting up captive cell manufacturing capacity was the more economically viable option.
• The change re-directs IPO capital from what the release describes as a low value-add, deferrable component (frames), surplus module capacity and surplus EVA encapsulant capacity to cell manufacturing.

Capacity context

• At a capacity of 1.2 GW, it will meet approximately 75% of OSEPL's overall cell requirement, with the balance continuing to be sourced externally in the near term.
• Existing and planned module lines (the ~570 MW line plus the 1 GW now being set up) are described as sufficient for current requirements.

Key benefits the company lists

• ALMM List-II compliance: assured access to ALMM-compliant domestic cells for modules supplied under PM-KUSUM, PM Surya Ghar, rooftop and other government-linked projects, protecting the order book eligibility.
• Security of supply: reduced dependence on third-party and imported cells at a time when domestic cell availability is constrained.
• Cost competitiveness: lower input costs and freight, strengthening the position in price-competitive government tenders.
• Technology leadership: TOPCon cells deliver higher efficiency and energy yield, enabling higher-wattage, premium modules.
• Quality control: end-to-end control of cell and module quality, improving reliability and warranty performance of solar pumping systems.
• Execution agility: faster turnaround on large orders, supported by in-house supply of cells and modules.

What to watch

• The variation in the objects of the issue and the modification of the time limit require shareholder approval along with other statutory/regulatory approvals.
• Commercial production is expected by April 2028, so the benefits described are tied to that timeline.

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