Sahaj Solar Limited is a provider of renewable energy solutions with prime focus on the Solar Pumping Business. Sahaj Solar IPO is set to raise Rs 52.56 crores. The issue is entirely a fresh issue of 29.2 lakh shares
IPO opens
July 11, 2024
IPO Closes
July 15, 2024
IPO Size (Rs.)
₹52.56 Cr
IPO Size (shares)
2,920,000 shares
Breakup
Fresh issue only
Face Value:
₹ 10
IPO Price in Rs :
₹171 to ₹180 per share
Minimum Lot
800 Shares
Listing At
NSE SME
QIB
~50 %
NII Quota
~15%
Retail Quota
~35%
Lead Manager
Kunvarji Finstock Pvt Ltd
Registrar
Kfin
Market maker
Aftertrade Broking.
About Sahaj Solar IPO :
Sahaj Solar Limited was founded in 2010.
They are engaged in three businesses of
PV Module manufacturing,
providing solar pumping systems and
providing EPC Services.
Pramit Bharatkumar Brahmbhatt, Varna Pramit Brahmbhatt and Manan Bharatkumar Brahmbhatt are the Promoters of The market size for solar water pumping systems in India was valued at around USD 120 million in 2022 and is expected to witness a compound annual growth rate (CAGR) of approximately 20% from 2022 to 2026. The Indian solar photovoltaic (PV) market is expected to grow at a CAGR of 9.8% between 2024 and 2032, reaching 43.23 GW by 2032. The India power EPC (Engineering, Procurement, and Construction) market size was valued at USD 13.30 Billion in 2022 and is likely to reach USD 83.84 Billion by 2031, expanding at a CAGR of 22.7% during 2023–2031.Company
Financials:Sahaj Solar IPO
Particulars/ Rs. Lacs
2023-24
2022-23
2021-22
2020-21
Revenue from Operations
20,117.41
18,536.15
6,677.00
6,193.36
Profit After Tax
1,316.08
634.9
102.31
59.85
Equity Share Capital
806.6
783.08
522.05
522.05
Net Worth
3,293.12
1,637.33
1,002.05
922.01
Net Asset Value
40.83
20.91
19.19
17.66
Total borrowings
5,680.86
1,361.97
1,711.35
1,502.87
Post issue Share Capital
1099
FV
10.0
IPO price
180.0
EPS Fy23
5.8
PE Fy23
31.2
EPS Fy24
12.0
PE Fy24
15.0
Market cap in Lacs
19,782
Market cap / Sales
0.98
Anchors: Sahaj Solar IPO
Very good response.
Sahaj Solar IPO: Salient Points
The market size for solar water pumping systems in India was valued at around USD 120 million in 2022 and is expected to witness a compound annual growth rate (CAGR) of approximately 20% from 2022 to 2026.
The Indian solar photovoltaic (PV) market is expected to grow at a CAGR of 9.8% between 2024 and 2032, reaching 43.23 GW by 2032.
The India power EPC (Engineering, Procurement, and Construction) market size was valued at USD 13.30 Billion in 2022 and is likely to reach USD 83.84 Billion by 2031, expanding at a CAGR of 22.7% during 2023–2031.
Net proceeds use: mainly for working capital.
Revenue from operations from various business verticals, capacity utilisation and orders
Particulars/ Rs. Lacs
2023-24
2022-23
2021-22
2020-21
Average Capacity Utilization
25.39 MW
25.04 MW
17.21 MW
26.59 MW
Revenue Split between different verticals of the company
A) Solar Pump
14,179.94
13,213.74
2,075.05
322.33
in %
70.49%
71.29%
31.08%
5.20%
B) Solar Panels
5,454.28
4,056.29
4,388.02
5,646.51
in %
27.11%
21.88%
65.72%
91.17%
C) Solar Roof Top
412.83
452.28
187.63
214.97
in %
2.05%
2.44%
2.81%
3.47%
D) Other products including Street
13.29
363.69
20.84
–
light, Home light and Off-grid projects
in %
0.07%
1.96%
0.31%
0.00%
E) Other Operating Revenues
57.07
450.15
5.46
9.55
in %
0.28%
2.43%
0.08%
0.15%
Total
20,117.41
18,536.15
6,677.00
6,193.36
in %
100.00%
100.00%
100.00%
100.00%
Capacity in MW
100 MW
100 MW
100 MW
100 MW
Order Book in MW
51.44 MW
5.74 MW
23.10 MW
0.00 MW
Company has a PV module manufacturing plant having a capacity of 100 MWs at Bavla, Ahmedabad.
Their prime focus is on the Solar Pumping Business ( 70% of revenues).
,Their working capital requirement is high since 70% major portion of revenue is from Govt. water pumping projects where payment and subsidies get disbursed after 3-4 months period.
Company has shown Shakti Pumps, Zodiac Energy, and Solex Energy, listed peers. The valuations of company are comfortable wrt these peers.
Sahaj Solar IPOis coming at a PE ratio of 15x (FY24 Earnings).
I intend to apply in Sahaj Solar IPO subject to availability of funds. Renewable energy sector continues to be in focus though there are clear signs of overcrowding in the sector and companies trying to cash on investor fancy for the sector. Good prospects for company in Solar Pumping Business due to schemes like PM KUSUM.
GMP as reported on social media has been Rs. 240 (133%)
Kunvarji Finstock Pvt Ltd is the Lead Manager and has a limited record. They managed issues of Falcon Technoprojects India Limited.
SME IPOs are quite volatile and new retail investors need to exercise considerable caution in my view.
This post is exploratory and educational purposes only. Please do your own diligence before investing in SME IPOs like this.
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.
