IPO Details
- IPO Opening Date: Tuesday, August 19, 2025
- IPO Closing Date: Thursday, August 21, 2025
- IPO Size: Rs 2,050 – 2,079 crore
- Fresh Issue: Rs 1,500 crore (up to 4,51,80,722 equity shares)
- Offer for Sale (OFS): Up to 17,450,882 equity shares (aggregating to Rs 579 crore)
- Price Band: Rs 315 – 332 per equity share
- Minimum Bid Lot: 45 shares
- Investor Allocation: QIB: Not more than 50%; NIB: Not less than 15%; Retail: Not less than 35%; Employees: Up to Rs 100 million
- Lead Managers: JM Financial, Nuvama Wealth Management, UBS Securities India, Equirus Capital, PhillipCapital (India)
- Registrar to the Offer: MUFG Intime India Private Limited (formerly Link Intime India Private Limited)
About the Company
- Vikram Solar is one of India’s largest pure-play Solar PV module manufacturers with 4.50 GW operational capacity, boasting over 17 years of industry experience. It also operates established EPC and O&M business divisions for full-life-cycle services. The company was an early adopter of half-cut cell technology, listed on the first ALMM by MNRE in March 2021.
- Main Products/Services:
- Solar PV modules (PERC, N-Type, HJT, bifacial/monofacial, 395Wp-735Wp with 20.23%-23.66% efficiency).
- EPC projects for solar plants (over 200 projects, 1.41 GW executed or under execution).
- O&M services (over 1,396 MW ongoing projects).
- Rooftop projects (214 projects, 114.00 MW cumulative capacity executed or under execution).
- Plans to expand into Battery Energy Storage Systems (BESS) and new product categories (inverters, cables, solar kits).
- Manufacturing Facilities: Located at Falta SEZ in Kolkata, West Bengal (3.20 GW capacity) and Oragadam, near Chennai, Tamil Nadu (1.30 GW capacity), totaling 4.5 GW installed capacity.
- Promoters: Gyanesh Chaudhary, Gyanesh Chaudhary Family Trust, and Vikram Capital Management Private Limited.
- Network and Presence: Pan-India presence in 19 states and 2 union territories through 83 authorized distributors, 250 dealers, and 76 system integrators. Global presence with a U.S. sales office, China procurement office, and supply to 39 countries including Europe.
Financials:
| Particulars | FY2025 (Rs. Cr) | FY2024 (Rs. Cr) | FY2023 (Rs. Cr) |
|---|---|---|---|
| Revenue from Operations | 3,423.45 | 2,510.99 | 2,073.23 |
| EBITDA | 492.01 | 398.58 | 186.18 |
| EBITDA Margin (%) | 14.4 | 15.9 | 9.0 |
| Net Profit | 139.83 | 79.72 | 14.49 |
| Net Profit Margin (%) | 4.1 | 3.2 | 0.7 |
Post IPO Market Cap: Rs 12,009.01 crore EV/Sales FY25: 3.1 times P/E FY24: 150.91 times (post-IPO) P/E FY25: 85.88 times (post-IPO)
Observation on results: Revenue from operations significantly increased by 36.3% in FY25, with net profit surging by 75.4%. This growth was driven by increased solar demand, higher customer orders, and effective cost control leading to reduced debt.
Anchors:
Vikram Solar raised Rs620.81 crore from 43 anchor investors. The top 10 anchor investors by % allocation are: Goldman Sachs (7.8%), Prudential Hong Kong (7.1%), Morgan Stanley (6.7%), Pinebridge Global Funds (6.4%), Societe Generale (6.2%), Integrated Core Strategies (Asia) (6.0%), Citigroup Global (5.9%), Kotak Mahindra AMC (5.4%), Franklin India (4.9%), and Nippon Life India (4.4%).
The remaining 33 anchor investors include UTI AMC, Tata Mutual Fund, HSBC MF, Edelweiss, ICICI Prudential Life Insurance, SBI General Insurance, Taurus MF, Finavenue Capital Trust, among others, each accounting for smaller allocations, mostly in the 1–4% range, with wide representation from mutual funds, insurance companies, and global institutions. Total allocation to mutual funds was 52%.
Salient Points
- Use of Funds: Rs 769.73 crore for Phase I Project (3 GW solar cell and 3 GW solar module facility) and Rs 595.208 crore for Phase II Project (module expansion to 6 GW). Balance for general corporate purposes (around Rs 135.1 crore).
- Business Verticals: Domestic and export solar PV module sales, integrated EPC, and O&M services.
- Revenue Model: Primarily through sales of solar PV modules and providing EPC and O&M services. Diversifying into BESS manufacturing and new product categories.
- Growth Strategies: Expanding module manufacturing to 15.50 GW by FY26 and 20.50 GW by FY27. Backward integration into solar cell manufacturing (12 GW by FY27). Entering BESS manufacturing (1.00 GWh to 5.00 GWh by FY27). Strengthening domestic retail network and distribution. Expanding global presence and diversifying supply chain.
- Risks: Intense market competition and evolving technology, leading to declining prices. High customer concentration (top 5/10 customers comprised 77.50%/88.72% of FY25 revenue). Dependency on raw material availability and pricing. Growth relies heavily on new manufacturing facility execution. Litigation exposure. High revenue concentration from solar PV modules (98.2% in FY25). Currency exchange rate fluctuations.
- Litigations: Company, Directors, and a Corporate Promoter are involved in legal cases; 2 criminal, 42 tax proceedings against the company. significant Litigations.
- Revenue Split by Region: FY25 domestic: 97.2%; FY25 exports: 1.0% (down from 61.6% in FY24).
- Export/Import: Over 98% of module exports from India go to the USA, driven by acts like the Uyghur Forced Labor Prevention Act. Backward integration aims to reduce import dependency.
- Revenue Split by Product/Service: Solar PV modules account for 98.2% of operational revenue in FY25. Sales of goods were Rs 33,630.25 crore and services Rs 604.28 crore in FY25.
- Capacity Utilisation: Module manufacturing plants operate at 65-70% efficiency, achieved by the company.
- Expansion: Current 4.5 GW capacity. Plans to reach 15.5 GW by FY26 and 20.5 GW by FY27 for modules. Solar cell manufacturing facilities (3 GW and 9 GW) planned by FY27.
- Order Book: 10,340.82 MW as of March 31, 2025, converting to approximately Rs 15,000 crore. This covers current year’s plan and part of next year’s. 50-60% repeat orders.
- CAGR (FY23-FY25): Revenue: 28.50%; EBITDA: 62.56%; Net Profit: 102.27%.
- EV/EBITDA: 21.4 times for FY25 (post-issue).
Peers
| Name of the Company | Sales (Rs Cr) | EBITDA (Rs Cr) | Net Profit (Rs Cr) | EBITDA Margin (%) | Net Profit Margin (%) | P/E (x) | EV/EBITDA (x) | RoE (%) | RoCE (%) |
|---|---|---|---|---|---|---|---|---|---|
| Vikram Solar | 3,423 | 492 | 140 | 14.4 | 4.1 | 85.9 | 21.4 | 5.1% | 12.5% |
| Waaree Energies Limited | 14,444 | 2,722 | 1,928 | 18.8 | 13.3 | 43.8 | 28.5 | 20.3% | 20.0% |
| Premier Energies Limited | 6,519 | 1,781 | 937 | 27.3 | 14.4 | 48.0 | 25.2 | 33.2% | 30.0% |
| Websol Energy System Limited | 575 | 253 | 155 | 44.0 | 27.0 | 38.5 | 23.9 | 55.8% | 49.5% |
Management Commentary
- Operations and Capacity: Module manufacturing plants are operating at 65-70% efficiency. New 6 GW module capacity in Tamil Nadu by end of FY26; 3 GW cell capacity by September 2026.
- Pricing and Market Dynamics: Solar prices dropped significantly over 10-15 years, but stabilized in the last 12-14 months, increasing affordability and deployment. Volatility is a natural demand-supply mismatch.
- Financial Performance Drivers: PAT and topline increase for FY25 driven by volume jump, increased customer orders, government support, cost control, and near-nil debt.
- Order Book: Stands at 10.2 GW, equivalent to Rs 15,000 crore, covering current year’s plan and part of next year’s. 50-60% of orders are repeat.
- Margin Outlook: Expected to improve with economies of scale and government’s domestic content mandate from next year, ensuring sustained profitability.
Opinion
- I intend to apply to the IPO despite some concerns. GMP ~13%.
- in-line EV/EBITDA valuation and anticipated margin improvement from backward integration.
- Industry macro trends are highly favorable, with robust domestic demand driven by government schemes like PM Surya Ghar Muft Bijli Yojana and PLI scheme for manufacturing. Significant annual solar capacity additions are projected for FY26-FY30.
- Past litigation cast some shadow over the IPO.
- P/E FY25: 85.88 times looks very high but Margin improvement is anticipated as solar cell capacity comes online and domestic content requirements increase. management has indicated substantial improved in profitability.
- 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.