Soleos Energy Limited

Draft Red Herring Prospectus dated September 30, 2026

Summary

Soleos Energy Limited is proposing a fresh issue of up to 1,10,00,000 new shares, alongside an offer for sale of 90,00,000 shares by existing shareholders. The document does not yet state the price.

About 85% of the amounts stated for the objects go to funding capital expenditure requirement for setting up battery energy storage systems manufacturing facility with an installed capacity of 2.20 GWh (BESS Project), and about 15% to repayment and/or prepayment, in full or part, of certain outstanding borrowings availed by the company. The amount for general corporate purposes is not yet stated.

The review found 6 points to read closely and 20 worth checking.

Read closely

1. Criminal proceedings against the company, its directors or individual promoters
2. Proceeds flow to promoters, group entities or related vendors
3. Profits are not converting into operating cash
4. Working capital building up
5. Accounting result and operating cash flow diverge
6. Auditor changes

How the capital was built

• The last priced issue of shares was a fundraise in 3 allotments between 25 Aug 2025 and 13 Jan 2026: 3,92,159 shares, mostly to non-promoter investors, at ₹2,448 each (₹122 in today's shares) (30 allottees, including people linked to the promoters), 17.6% of the pre-issue capital, at 2.5 times the price of the previous issue 15 months earlier; it came 8 months before this prospectus.
• From the first priced issue (11 Jan 2017, ₹0.5 in today's shares) to the last, the price per share rose 245 times over 9 years.

Conclusion

Of the 6 points to read closely, 1 concerns the promoters, management and their dealings (criminal proceedings against the company, its directors or individual promoters), 1 concerns how the IPO money will be spent and 4 concern the financial statements. These could not be scored automatically and need reading: group entities in the same business; contingent liabilities; guarantees given for group entities. These wait for the price and the final share count: shares issued shortly before the IPO at a deep discount to the issue price; low promoter holding after the issue. The pages to read are 99–100, 148, 152, 387, 389 and 507–508.