Subsidiary to set up greenfield 1.2 GW solar cell plant; IPO objects varied, timelines extended

Wholly owned subsidiary to set up greenfield 1.2 GW solar cell plant at Karnal, Haryana — a new line of business.

Sat 10 Oct 2026

Solar cell plant capacity

1.2 GW greenfield solar cell plant at Karnal, Haryana

Total project cost

Rs. 4,558.50 million

Deployment timeline

deployment proposed by FY2028

Two decisions were approved on October 10, 2026 — one by the board of the wholly owned subsidiary, and one by the board of the listed company.

What has been approved

• Oswal Solar Energy Private Limited (formerly Oswal Solar Structure Private Limited), a wholly owned subsidiary, will set up a greenfield 1.2 GW solar cell plant at Karnal, Haryana. Solar cell manufacturing is the new line of business.
• The board approved a variation in the objects/terms of utilisation of the IPO proceeds and a modification of the time limit for using them.
• These changes are subject to the receipt of requisite statutory and regulatory approvals, including the approval of shareholders. The detailed disclosures are to form part of a postal ballot notice to be issued in due course.

The IPO money and what changes

The IPO's net fresh-issue proceeds were INR 8,415.14 million. The total amount still unutilised, before issue-related expenses, is INR 2,102.36 million.

The object being varied is the equity investment in Oswal Solar for the new manufacturing units at Karnal, where INR 2,727.58 million was allocated. Of this, INR 1,630.44 million is still unutilised. The proposal:

• INR 1,598.50 million of that unutilised amount is to be used towards setting up a solar cell manufacturing plant at Karnal, in place of the Aluminium Frame Facility, the remaining EVA encapsulant capacity and the remaining solar module capacity.
• The balance unutilised amount continues to be used towards the original object.
• The proceeds for the cell facility are proposed to be deployed by Financial Year 2028.

Other objects and the timeline change

• For the capital expenditure object, no variation in the allocated amount is proposed; the estimated schedule of deployment of the proceeds is proposed to be extended to Financial Year 2027.
• The two objects relating to pre-payment/repayment of borrowings have been fully achieved, with no variation proposed.
• No variation is proposed for general corporate purposes.
• The total project cost of the solar cell plant is estimated at Rs. 4,558.50 million.

The company's stated reasoning

• The stated binding constraint on Oswal Solar's module business is the solar cell, not the frame. Securing Domestic Content Requirement cells from domestic cell manufacturers is described as difficult, with long-term contracts offered at elevated prices and large deposits demanded, leaving availability and cost of this key input outside the company's control for programmes such as PM-KUSUM and PM Surya Ghar.
• Backward integration into cell manufacturing is expected to secure supply, reduce exposure to spot prices and deposit demands, and deepen value addition from module assembly into cell manufacturing.
• The cell plant is intended for captive consumption and, at 1.2 GW, is expected to meet approximately 75% of the company's overall cell requirement, with the balance continuing to be sourced externally in the near term.
• The existing and planned module lines are described as sufficient for current requirements.
• The EVA encapsulant capacity being retained is described as largely sufficient to service module-manufacturing capacity, with only a small incremental quantum expected to be sourced externally.
• The company states that concentrating the re-purposed proceeds in Oswal Solar's equity is expected to be more value-accretive than continuing to fund incremental module capacity or the conventional aluminium-frame line.

What to watch

• The variation requires the approval of shareholders through postal ballot, along with other statutory and regulatory approvals, before it takes effect.
• Capital earlier earmarked for the aluminium frame line and part of the planned module and EVA capacity is being re-directed to cells, with the timeline for the cell capex proposed to run to Financial Year 2028.

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