Australian Premium Solar (India) IPO envisages to raise Rs 28.08 crores. The issue is entirely a fresh issue of 52 lakh shares. Company is primarily engaged in the manufacturing of Solar Panels and providing installation services.

About Australian Premium Solar (India):

• Company was originally incorporated as “Australian Solar Panel (India) Private Limited” as a private limited company in May 23, 2013.
• Australian Premium Solar (India) Limited is one of the recognised brands in the solar industry, which is in the business of manufacturing of Monocrystalline and Polycrystalline Solar Panels and Engineering, procurement, and construction (“EPC”) services thereof. The Company has modern manufacturing facility at Tajpur, Sabarkantha, Gujarat that helps in delivering quality and latest technology products in the industry. The products manufactured by the Company are used in residential, agricultural and commercial installations.
• The Promoters, Mr. Chimanbhai Ranchhodbhai Patel and Mrs. Savitaben Chimanlal Patel are associated with our company since incorporation. One of our current promoters Mr. Nikunj Chimanlal Patel acquired the shares from then existing shareholders in year 2017.
• The company is primarily engaged in the manufacturing of Solar Panels and EPC Services of solar systems. The industry term for solar panel is PV Module (Photovoltaic Module) which refers to setup for generating electricity from sunlight, using semiconductor materials in devices called photovoltaic cells or solar cells.
• Currently in the solar panel segment, they manufacture both monocrystalline and polycrystalline solar panels at the manufacturing facility spread across in 25,375 square meters, located at Sabarkantha, Gujarat having capacity of 200 MW per annum.
• They manufacture two types of solar panels: (i) Monocrystalline Solar Panel; and (ii) Polycrystalline Solar Panel. The difference between both lies in their integral raw material i.e., solar cell. Solar cell is typically made of semiconductor materials such as silicon wafers and it is an integral part of any solar powered device. In Monocrystalline Panels, solar cells are typically more efficient and have a darker, uniform appearance due to their single-crystal structure allowing for bus bars (Copper coated thin strip) to be placed more strategically without significant visual impact. On the other hand, Polycrystalline solar cells have a blue or speckled appearance due to their multiple crystal structures, bus bars may need to be positioned to accommodate the less uniform appearance of these cells.
• We also provide installation services for solar panels and solar pumps. We undertake installation services under this segment for household and industrial end users, while also provide solar pump installation services for agricultural end users which enable us to supply our manufactured solar panels along with solar pumps.
• Till August 31, 2023, we have served more than 10,000 unique customers towards installation of solar modules out of which more than 9500 has been roof top installation for residential use and more than 1300 solar pumps installation for agricultural use.
• They are certified with ISO 9001: 2015 by M/s. OSS Certification Services Private Limited for Quality Management System.
• Their Core business can be divided in following categories:
• Manufacturing of solar panels
• EPC Services:
  1. Installation Services for Solar Rooftop
  1. Installation of Solar Pumps
• As at July 31, 2023, the company employed a total of 169 people.

Financials: Australian Premium Solar (India) IPO

Anchors: Australian Premium Solar (India) IPO

Australian Premium Solar (India) IPO: Salient Points

• The promoters current shareholding shall stand diluted to 73.64% from 100% at present. .
• The Net Proceeds are proposed to be utilized in the manner set forth below:

• Their top ten customers contribute 48.11%, 44.65%, 17.44%, and 24.40% of our total sales for period / financial year ended on July 31, 2023, March 31, 2023, 2022 and 2021, respectively.
• APS sells solar inverters in the Indian market. APS offers grid connected locally manufactured, premium quality inverters for residential and commercial applications.
• APS Solar Water Pumps empower the farmers and people residing in the farthest localities and are an ideal low-cost solution.
• Company has availed credit facilities from HDFC Bank aggregating to ₹ 158.62 Lakh
• . Company have generated ₹ 3,367.13 Lakhs, ₹ 6,403.04 Lakhs, ₹ 3,233.94 Lakhs and ₹3,945.23 Lakhs from Manufacturing of solar panels amounting to 67.11%, 67.71%, 32.96% and 53.20% of the total revenue from operations for period / financial year ended on July 31, 2023
• The company’s peers include Zodiac Energy Limited.  It is trading at a P/E of 94.
• It has more than 9,500 installations were for residential rooftop setups, while over 1,300 were for agricultural solar pumps. or residential rooftop and solar pumps projects for agricultural purposes. For this they are eligible for claiming subsidy from State/Central Government In majority of the cases, company directly claims subsidy from state/Central government upon successful installation of residential rooftop and solar pumps projects.
• Australian Premium Solar (India) IPO is coming at a PE ratio of 32x(fy23 earnings) and 31.4x (fy24 annualized earnings)
• I intend to apply in Australian Premium Solar (India) IPO subject to availability of funds. The solar energy sector has a bright outlook and is witness substantial activity.
• GMP as reported on social media has been Rs. 30/-.
• Beeline Capital Advisors Pvt Ltd is the Lead Manager to the issue. It has a fair to good record. Past issues handled by them include Indifra Limited, Benchmark Computer Solutions, Sheetal Universal Limited, Rajgor Castor Derivatives, Arvind and Company Shipping Agencies, Karnika Industries Limited, Hi-Green Carbon Limited, Kody Technolab Limited, Chavda Infra Limited, Vinsys IT Services Limited,Ahasolar Technologies, Pentagon Rubber, Remus Pharmaceuticals, Sotac Pharmaceuticals, RBM Infracon Limited, Transvoy Logistics, Dev Labtech, Viviana Power Tech, Vital Chemtech, Aristo Bio-Tech and Lifescience, Viaz Tyres, Vertexplus Technologies 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.