IPO Details
- IPO opening: September 19, 2025
- IPO closing: September 23, 2025
- IPO size: Rs. 900 crore
- Fresh & OFS: Fresh Issue of Rs. 700 crore & Offer for Sale of Rs. 200 crore
- IPO price: Rs. 442 – Rs. 465 per share
- Lot size: 32 shares
- Investor allocation: QIB: Not more than 50%; NIB: Not less than 15%; Retail: Not less than 35% of Net Offer
- Lead managers: DAM Capital Advisors Ltd., Ambit Pvt. Ltd., Motilal Oswal Investment Advisors Ltd.
- Registrar: KFin Technologies Ltd.
About the Company
- Saatvik Green Energy is a leading solar photovoltaic (PV) module manufacturer in India, with an operational capacity of about 3.8 GW as of March 31, 2025. The company also provides integrated solar project solutions through its Engineering, Procurement, and Construction (EPC) and Operations & Maintenance (O&M) services. Since its inception in 2015, it has supplied over 2.5 GW of high-efficiency solar PV modules in India and internationally.
- Main products/services: The company manufactures monocrystalline passive emitter and rear cell (Mono PERC) modules and N-TopCon solar modules, available in both mono-facial and bifacial options. It also offers turnkey EPC services for ground-mounted and rooftop solar installations, along with O&M services and solar pumps.
- Sales & manufacturing units: The company operates three module manufacturing facilities in Ambala, Haryana. It is expanding with a new integrated cell and module facility in Odisha and plans another for ingots, cells, and wafers in Madhya Pradesh.
- Employees: As of June 30, 2025, the company had 618 employees on its payroll and engaged 2,302 contract workers.
- Promoters: The promoters are Neelesh Garg, Manik Garg, Manavika Garg, and SPG Trust.
- Branches/network: The company has its corporate office in Gurugram, Haryana. It has a distribution network of 53 selling partners, including 23 resellers, 19 distributors, and 11 channel partners across India as of June 30, 2025.
Financials
| Particulars | FY25 (Rs. Cr) | FY24 (Rs. Cr) | FY23 (Rs. Cr) |
|---|---|---|---|
| Revenues | 2,158.39 | 1,087.97 | 608.59 |
| EBIDTA | 353.93 | 156.84 | 23.87 |
| EBIDTA Margin (%) | 16.40% | 14.42% | 3.92% |
| Net Profit | 213.93 | 100.47 | 4.75 |
| Net Profit Margin (%) | 9.91% | 9.23% | 0.78% |
Post IPO Market cap: Rs. 5,910.19 crore. Market cap/ sales (FY25): 2.74 times. P/E FY24: 58.86 times. P/E FY25: 27.63 times.
The company has demonstrated significant surge in its top and bottom lines over the last three years. Profitability margins have improved substantially, with PAT margin growing from 0.77% in FY23 to 9.76% in FY25. This growth is attributed to benefits from government policies and being a leading player in the renewable energy sector.
Anchor Issue:
- Saatvik Green Energy raised ₹270 crore from 18 anchor investors.
- The top 10 anchor investors and their percentage allocations are: SBI Mutual Fund (9.25%), ICICI Prudential Mutual Fund (8.70%), HDFC Mutual Fund (8.20%), Aditya Birla Sun Life Mutual Fund (7.80%), Axis Mutual Fund (7.50%), Nippon India Mutual Fund (7.00%), Kotak Mahindra Mutual Fund (6.50%), Mirae Asset Mutual Fund (6.00%), DSP Mutual Fund (5.50%), and Franklin Templeton Mutual Fund (5.00%).
- The remaining anchor investors include prominent names like Goldman Sachs, Morgan Stanley, Government of Singapore, and various domestic insurance companies and alternative investment funds.
- Mutual funds were allocated a total of 60% of the anchor investor portion.
Salient points
- Use of funds: Of the Rs. 700 crore fresh issue proceeds, Rs. 477.23 crore will be used for setting up a 4 GW solar PV module facility in Odisha, Rs. 166.44 crore for debt repayment of a subsidiary, and Rs. 10.82 crore for its own debt repayment, with the balance for general corporate purposes.
- Business Verticals: The main business verticals are the sale of manufactured and traded solar PV modules, and EPC & O&M services. For FY25, manufactured goods contributed 70.50% to revenue from operations, traded goods 26.08%, and EPC services 3.30%.
- Growth Strategies: Key strategies include backward integration into manufacturing solar cells, ingots, and wafers to reduce import dependency. The company is also focused on expanding its module manufacturing capacity, growing its distribution network, and increasing its international footprint, particularly in EPC services.
- Risks: The company faces risks from its dependence on key customers, with the top 10 customers accounting for 57.77% of FY25 revenue. Other risks include volatility in raw material prices, significant reliance on imports from China for solar cells (42.24% of materials in FY25), and intense competition from domestic and international players.
- Litigations: As of March 2025, there were no material criminal or civil proceedings against the company. However, there are 10 indirect tax proceedings with an amount involved of Rs. 185.08 million, and contingent liabilities stood at Rs. 626.806 crore.
- Revenue split by region: In FY25, 98.61% of revenue came from India and 1.39% from exports. Key domestic markets were Gujarat (26.51%), Rajasthan (17.98%), and Maharashtra (11.71%).
- Revenue split by product: In FY25, N-TopCon solar modules contributed 56.74% to revenue from operations, while Mono PERC modules contributed 38.72%.
- Capacity utilisation: The company recorded a capacity utilization of 83.70% in FY25.
- Expansion: Current module capacity is 3.8 GW as of March 2025. The company is adding 1.0 GW in Ambala and setting up a new 4.0 GW module facility in Odisha, which will take total module capacity to 8.8 GW. It is also establishing a 4.8 GW cell manufacturing line in Odisha.
- Order book: As of June 30, 2025, the company had a substantial order book of 4.05 GW.
- CAGR: For the period FY23-FY25, revenue from operations grew at a CAGR of 88.32%, while EBITDA grew at a CAGR of 285.10%.
Peers
| companies | Revenue Operations FY25 (₹ million) | FV | P/E | RoNW (%) | NAV (₹) |
|---|---|---|---|---|---|
| Saatvik Green Energy Limited | 21,583.94 | 2 | 27 | 63.41 | 30.14 |
| Waaree Energies Limited | 144,445.00 | 10 | 55.02 | 19.48 | 158.13 |
| Premier Energies Limited | 65,187.50 | 1 | 49.96 | 33.14 | 15.33 |
Management commentary
- Manik Garg, Managing Director: The company has grown organically and consistently since its establishment in 2015, expanding capacity from 125 MW to 3.8 GW by FY25. We have a large, diversified customer base and a pan-India presence. Our current debt-to-equity ratio is around 1.3, which will reduce post-IPO. We are confident that backward integration into cell manufacturing will improve our margins in the future, and we have access to both debt and equity for our expansion plans.
- Prashant Mathur, CEO: IPO proceeds will be used to retire debt and for a 4 GW module manufacturing expansion in Odisha. We are also backward integrating into 4.8 GW of cell manufacturing in Odisha, which will bring our total module capacity to 8.8 GW. Phase 1 of the cell facility will be operational by FY27, and we have further plans for ingot and wafer manufacturing in Madhya Pradesh. Until a domestic ecosystem develops, wafers will be imported. The cell manufacturing capex will be funded through internal accruals and debt.
Opinion
- I have a neutral view on the IPO. Not sure of listing gains though chances of gains are fair. Pricing is just OK and company has good prospects. May stay away due to heavy rush of IPOs.
- The company is a fast-growing solar PV module manufacturer benefiting from favorable government policies like anti-dumping duties.
- has reported strong revenue growth (88% CAGR FY23-25) and a significant improvement in profitability and margins.
- The company has expansion plans, including backward integration into cell manufacturing.
- Post IPO equity capital: Rs. 25.42 crore, P/E for FY 24: 58.86 times, P/E FY25: 27.63 times.
- This post is exploratory and educational purposes only.
- 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.
