Alpex Solar IPO (NSE SME) Overview

Alpex Solar IPO aims to raise Rs 74.52 crores. The issue is entirely a fresh issue of 64.8 lakh shares. Alpex solar is a Solar Photovoltaic (PV) module manufacturer based in Noida. In addition to solar PV module supply, company is also into assembling solar water pumps, EPC projects.

IPO opensFeb 08, 2024
IPO ClosesFeb 12, 2024
IPO Size (Rs.)₹74.52 Cr
IPO Size (shares)6,480,000 shares
BreakupFresh issue only
Face Value:₹ 10
IPO Price in Rs :₹109 to ₹115 per share
Minimum Lot1200 Shares
Listing AtNSE SME
QIB ~50 %
NII Quota~15%
Retail Quota~35%
 Lead ManagerCorporate Capitalventures
RegistrarSkyline Financial Services
Market makerSs Corporate Securities

About Megatherm Induction Limited:

  • Alpex is a Solar Photovoltaic (PV) module manufacturer in North India.
  • PV modules are manufactured using both monocrystalline and polycrystalline cell technologies.
  • Their portfolio of solar energy products consists of the following solar PV modules which include bifacial, mono perc, half-cut.
  • They also provide integrated solar energy solutions, including engineering, procurement, construction (EPC) of DC/AC Solar Pumps.
  • Manufacture – Solar  Photovoltaic (PV) module.
  • (EPC) Engineering, Procurement, Construction of Solar PV  Water  Pumps
  • Company has been accredited with various quality certifications such as ISO 14001:2015 and certified by KVQA Assessment Pvt Ltd, for Manufacturing and Assembly of Solar Photo Voltaic Modules / Panels, Solar Power Generating Systems (Covering Off Grid, On Grid & Hybrid Solar Power Plants), Solar Pumping Systems.
  • They currently operate one manufacturing facility in Greater Noida, which spans over 7,700 square meters and other offices located in the state of – New Delhi, Mumbai, Ludhiana, Nalagarh (Himachal Pradesh), Jaipur, Chhattisgarh, Tirupur (Tamil Nadu).

Financials: Alpex Solar IPO

Particulars/ Rs. LacsSept 30, 2023202320222021
Revenue (total income)20,713.3618,393.2215,606.9113,949.16
Profit after Tax1,002.97374.617.05279.76
Share Capital599.78599.78599.78599.78
Net Worth4,932.463,929.493,554.873,547.81
Diluted EPS5.572.080.041.55
Net Asset Value82.2465.5259.2759.15
Total borrowings    
– Long Term249.3376.4602.271,014.14
– Short Term3,925.853,603.531,376.001,752.58
Post issue Share Capital2,447   
IPO price115   
EPS Fy231.5   
PE Fy2375.1   
EPS Fy24 (annualized)8.2   
PE Fy24  (annualized)14.0   
Market cap in Lacs28,140.5   
Market Cap/sales1.5   

Anchors: Alpex Solar IPO

Alpex Solar IPO: Salient Points

  • The global solar power market size was valued at US$ 197.23 billion in 2021 and is expected to hit around US$ 368.63 billion by 2030, poised to grow at a compound annual growth rate (CAGR) of 7.2% during the forecast period 2021 to 2030.
  • In addition to solar PV module supply, company is dependent on winning bids for solar water pumps EPC projects.
  • The government through various schemes such as Jawaharlal Nehru National Solar Mission and Rashtriya Krishi Vikas Yojna open tender for the different solar companies to bid under the different category of solar installation schemes.
  • Under the EPC for AC/DC water pumps, the company secures projects by submitting bids in government-issued tenders. If they win the tender, they proceed to install the AC/DC water pump in the designated land area.
  • The Net Proceeds are proposed to be utilized in the manner set forth below:
S. N.ParticularsAmount (In ₹. Lakh)
1.Funding capital expenditure for upgradation and expansion of existing solar module manufacturing facility by increasing 750 MW, located at Plot No I 26 Site 5 Surajpur Industrial Area, I.A. Surajpur, Gautam  Buddha Nagar, Noida, Uttar Pradesh,  India, 2013061955.80
2.Funding Capital Expenditure towards setting up of a new manufacturing unit for Aluminum frame for the solar  module1294.65
3.To Meet  Working Capital requirements  of the Company2049.55
  • Top 5 Customers are:
Name of top 5 CustomersAs  on March 31, 2023As  on March 31, 2022As  on March 31, 2021
Luminous  Power  Technologies  Private Limited7,565.185,622.515,452.30
Premier Energies Limited3,353.171,029.02
The Director General New & Renewable Energy Development1,774.71
Punjab Energy Development Agency1,382.57
Tata Power Solar Systems  Limited3,401.503,198.56
Saatvik Green Energy (P) Ltd3,265.99
Hild Projects  Private Limited1,001.241,149.74
Marlec Engineering Co Ltd201.86
Jakson Engineers Limited882.44
  • More Clients:
  • Company plant at Noida is engaged in the manufacturing of solar modules and assembling of solar pumps.
  • current manufacturing facility have an annual production capacity of 450MW. company proposes to utilise a portion of the Net Proceeds, amounting to ₹ 1955.80 Lakhs, for upgradation & expansion of current manufacturing facilities, with an annual production capacity of 750 MW. This project is expected to be completed by the second quarter of Fiscal 2025
  • Currently, they heavily rely on importing aluminum profiles from China & other sources within India and subsequently processes them by cutting them to the required dimensions using cutting- edge technology for their solar module manufacturing, further, they integrate these aluminum profiles into solar PV modules, which leads to increased costs.
  • To address this, they are doing backward integration to produce these frames in-house. This will significantly reduce expenses, potentially saving around 5-10% of the frame cost. They can also offer frames to other module manufacturers, generating additional profits
  • Peers:
Company/₹ crCMP (₹)Revenue Fy23NP Fy23Revenue Hy24NP Hy24NPM 23NPM Hy24PEMcap (cr)Mcap/salesRONW%
Alpex Solar1151963.721310.01.9%4.7%75(14)2811.449.55%
Insolation Energy1,14228011.0278153.9%5.4%1132,3788.4928.48%
  • It has narrowed down the gap with Peer Insolation Energy.
  • Alpex Solar IPO is coming at a PE ratio of 75.1x(fy23 earnings) and 14x (fy24 annualized earnings)
  • I intend to apply in Alpex Solar IPO subject to availability of funds. There is good demand for solar sector fueled by Govt schemes and quest for clean energy.
  • GMP as reported on social media has been Rs. 190 .
  • Corporate Capitalventure is the Lead Manager with a good record. Past issues handled by them include Accent Microcell Limited, Rockingdeals Circular Economy, Oriana Power Limite, Crayons Advertising Limited, Droneacharya Aerial Innovations Limited, Annapurna Swadisht Limited, Rajnandini Metal Limited, Swastik Pipe Limited, Uma Exports Limited, Phantom Digital Effects Limited, Nupur Recyclers etc.
  • Ss Corporate Securities is the market maker. Had earlier acted as market maker for Addictive Learning Technology Limited, Akanksha Power and Infrastructure, Rockingdeals Circular Economy, Sunita Tools ,Oneclick Logistics India, Cellecor Gadgets, Frog Cellsat, Phantom Digital Effects etc.
  • SME IPO are much more risky and volatile than mainboard IPOs.
  • Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.

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