Grace Renewable Energy IPO: DRHP Filed, 1.12 Crore Shares — Details & Financials
Ahmedabad-based solar EPC company Grace Renewable Energy Limited has filed its draft red herring prospectus (DRHP) with SEBI for an initial public offering of up to 1.12 crore equity shares. The company provides turnkey solar installations, trades solar equipment, and manufactures battery energy storage systems (BESS). Here is what the DRHP reveals about the issue size, business, financials and next steps.
IPO details at a glance
| Parameter | Details |
|---|---|
| Company | Grace Renewable Energy Limited (Ahmedabad, Gujarat) |
| Total issue size | Up to 1,12,00,000 (1.12 crore) equity shares, face value Rs 10 each |
| Fresh issue | Up to 84,15,000 equity shares |
| Offer for sale (OFS) | Up to 27,85,000 equity shares by promoter selling shareholders Manish Bagadia (19,01,000 shares) and Karuna Bagadia (8,84,000 shares) |
| Price band | Not announced yet (will be fixed after SEBI observations) |
| Issue dates | Not announced yet |
| Proposed listing | BSE and NSE (mainboard) |
| Book running lead manager | Marwadi Chandarana Intermediaries Brokers Pvt Ltd (sole BRLM) |
| Registrar | KFin Technologies Ltd |
| DRHP filed | 16 October 2026; board approved on 25 September 2026 |
How the company plans to use the money
According to the DRHP, the net proceeds of the fresh issue are proposed to be used for:
- Incremental working capital — Rs 79.31 crore: Rs 22.21 crore in FY27 and Rs 57.11 crore in FY28
- Purchase of machinery for setting up the Phase II BESS facility
- General corporate purposes (balance, to be determined after the offer price is finalised)
The working-capital heavy objects-of-issue profile is typical of EPC companies, where projects are executed before clients pay.
What the company does
Incorporated in 2013 (originally as Winwin Building Materials Pvt Ltd; renamed Grace Renewable Energy Pvt Ltd in February 2017 and converted to a public company in September 2024), the company operates across three verticals:
1. Solar EPC services
Design, engineering, procurement, installation, testing, commissioning and operations & maintenance of rooftop and ground-mounted solar projects for residential, commercial and industrial (C&I) customers. As of 31 March 2026, the company had cumulatively commissioned 94,904.74 kW (~94.9 MW) of solar capacity across 6,344 projects in 11 Indian states and select international markets.
2. Product trading
Sourcing and supply of solar PV modules and inverters. The company is an authorised channel partner for modules manufactured by Adani New Industries and Mundra Solar.
3. Battery energy storage (BESS)
Manufacturing and assembly of battery storage packs sold under the Grace brand, from a unit in Ahmedabad with an installed capacity of 48 MWh.
Financials: revenue up 71%, PAT up 91%
| (Rs crore) | FY24 | FY25 | FY26 |
|---|---|---|---|
| Revenue from operations | 77.91 | 120.49 | 205.84 |
| EBITDA | — | 12.81 | 25.80 |
| Profit after tax (PAT) | — | 9.77 | 18.67 |
| Net worth | — | — | 37.73 |
| Total debt | — | — | 0.92 |
The company reported FY26 revenue of Rs 205.84 crore (up 70.8% year-on-year), EBITDA of Rs 25.80 crore and PAT of Rs 18.67 crore (up 91% year-on-year). Implied FY26 margins work out to roughly 12.5% EBITDA margin and 9.1% PAT margin. The balance sheet is nearly debt-free — total debt of just Rs 0.92 crore against a net worth of Rs 37.73 crore at the end of FY26.
Its confirmed solar EPC order book stood at Rs 47.89 crore as of 31 March 2026 — modest relative to annual revenue, which means new order wins will matter for growth visibility.
What happens next
The DRHP will now go through SEBI's review process. SEBI typically takes two to six months to issue observations; only after that can the company fix a price band, file the red herring prospectus (RHP) and announce bid dates. Filing a DRHP does not guarantee the IPO will launch — companies can withdraw at any stage. Investors should wait for the price band and the RHP before forming any view on valuation.
Review: strengths and risks
Strengths: fast-growing revenue and profits over FY24–FY26, a near-debt-free balance sheet, diversified verticals (EPC + trading + BESS) that reduce dependence on any single line, and strong sector tailwinds from residential rooftop schemes and commercial solar adoption.
Risks: the business is working-capital intensive (which is exactly where most of the fresh money goes), the confirmed order book covers only a fraction of annual revenue, the company is small relative to listed solar/EPC peers, the EPC market is fragmented and competitive, and part of the issue is an OFS (money to promoters, not the company). The closest comparable on IPOlist.in's radar is Ultravibrant Integrated Energy, another solar EPC-plus-BESS company whose DRHP was filed in September 2026.
FAQs
What is the size of the Grace Renewable Energy IPO?
The DRHP proposes an issue of up to 1.12 crore equity shares (face value Rs 10): up to 84.15 lakh fresh shares and an offer for sale of up to 27.85 lakh shares by promoter selling shareholders.
When will the Grace Renewable Energy IPO open?
No dates have been announced. The company filed its DRHP with SEBI on 16 October 2026; the IPO can be launched only after SEBI issues its observations, which typically takes a few months.
What is the price band of the Grace Renewable Energy IPO?
The price band has not been fixed yet — it will be decided in consultation with the merchant banker after SEBI's review.
Where will Grace Renewable Energy list?
The company proposes to list its shares on both the BSE and the NSE.
What does Grace Renewable Energy do?
It is an Ahmedabad-based solar company with three verticals: solar EPC services (~94.9 MW commissioned across 6,344 projects by March 2026), trading of solar modules and inverters (authorised channel partner for Adani New Industries and Mundra Solar), and BESS battery-pack manufacturing (48 MWh installed capacity).
What are the FY26 financials?
Revenue from operations Rs 205.84 crore (+70.8% YoY), EBITDA Rs 25.80 crore, PAT Rs 18.67 crore (+91% YoY), with near-zero debt (Rs 0.92 crore).
Conclusion
Grace Renewable Energy's DRHP adds another solar EPC name to the IPO pipeline, alongside recent renewable filings like Vishakha Renewables and Inox Clean Energy. The growth and debt-free balance sheet look healthy, but the working-capital-heavy objects of the issue and a thin order book are the things to watch. The price band and dates will be known only after SEBI clears the document.