Emmvee Photovoltaic Power IPO Struggles For Full Subscription As GMP Crashes 85% In 3 Days

Emmvee Photovoltaic Power IPO: The grey market premium (GMP) of Emmvee Photovoltaic Power shares in the unlisted market nosedived 85 per cent over the past three days. Meanwhile, the subscription for its initial public offering (IPO) so far on the final day has also been muted. The issue, as of 12:30 PM, was subscribed only 26 per cent, or 0.26 times the shares on offer.

Emmvee Photovoltaic Power IPO Subscription Status: Day 3

The qualified institutional buyers (QIBs), who are being offered 42.23 million equity shares, have made bids for just 4.55 million shares. This translates into 0.11 times subscription.

The non-institutional investors (NIIs) are being offered 21.12 million shares. However, they have placed bids for only 3.94 million shares, translating into a 0.19 times subscription.

Retail investors have booked the issue 0.85 times, placing bids for 12.04 million shares against 14.08 million shares offered.

Emmvee Photovoltaic Power IPO Details

Emmvee Photovoltaic Power IPO Size: The Rs 2,900-crore IPO comprises a fresh issue of 98.79 crore equity shares worth Rs 2,143.86 crore and an offer for sale of 34.84 million shares aggregating to Rs 756.14 crore.

Emmvee Photovoltaic Power IPO Price Band: The company is offering its shares with a price band of Rs 206-217 per share.

Emmvee Photovoltaic Power IPO Lot Size, Minimum Amount: Investors are required to apply in lot size of 69 shares, and the minimum amount required by retail investors is Rs 14,973, based on the upper price band.

Emmvee Photovoltaic Power IPO Allotment, Listing Date: The basis of share allotment is likely to be finalised on November 14, and shares are expected to tentatively list on November 18.

Emmvee Photovoltaic Power IPO Objectives: The company plans to use the net proceeds to repay or pre-pay its outstanding borrowings and for general corporate purposes.

Emmvee Photovoltaic Power IPO BRLMs, Registrar: IIFL Capital Services, Jefferies India, JM Financial, and Kotak Mahindra Capital are the book-running lead managers, and KFin Technologies is the registrar to the issue.

Emmvee Photovoltaic Power IPO GMP Today

Emmvee Photovoltaic Power’s shares, which commanded a GMP of Rs 20 per share on November 10, a day before its IPO opened for subscription, are now quoting at just Rs 3 per share over the issue price.

Given the current GMP and the upper band of the issue price, Emmvee Photovoltaic Power’s shares are expected to list around Rs 220 apiece. This represents a meagre potential listing gain of 1.38 per cent.

Emmvee Photovoltaic Power: Financial Details

Emmvee Photovoltaic Power reported a total income of Rs 1,042.22 crore for the quarter ended June 30, 2025. Profit after tax (PAT) stood at Rs 187.68 crore, while Ebitda was at Rs 347.38 crore during the period.

For the full financial year 2025, the company’s total income rose to Rs 2,360.33 crore from Rs 954.44 crore in FY24 and Rs 644.37 crore in FY23. PAT jumped to Rs 369.01 crore in FY25 from Rs 28.90 crore in the previous year and Rs 8.97 crore in FY23. Ebitda, too, surged to Rs 721.94 crore in FY25 from Rs 120.44 crore in FY24 and Rs 56.27 crore in FY23.

Emmevee Photovoltaic Power: What Company Does

Emmvee Photovoltaic Power is a solar module manufacturer and the second-largest pure-play integrated solar PV module and cell producer in India by production capacity as of March 31, 2025, according to a Crisil report, as mentioned by the company in its red herring prospectus (RHP).

The company’s product portfolio includes bifacial and mono-facial formats of TOPCon and Mono PERC modules and cells. Emmvee is an ALMM-enlisted manufacturer and operates four production facilities across two locations in Karnataka.

What’s Behind The Tepid Investor Interest

Emmvee Photovoltaic Power’s business shows a high dependence on a few large customers. Its biggest client accounted for 36.6 per cent of revenue in the three months ended June 30, 2025. Losing this customer could significantly affect its revenue and profitability, the company mentioned in its RHP. The company’s earnings are also concentrated in a narrow product range, nearly 99.4 per cent of its revenue in the same period came from TOPCon and Mono PERC modules. A slowdown in demand for these products could hit its financial performance.

The company also faces the risk of under-utilising its manufacturing capacity, which could hurt margins. On the supply side, Emmvee relies heavily on a limited number of vendors, with its top five suppliers contributing 43.3 per cent of total purchases in the June quarter. Moreover, 94.7 per cent of its raw materials are imported, making it vulnerable to global supply disruptions and currency fluctuations.

While the company’s order book provides visibility on future revenues, there is no assurance that these contracts will translate into timely or profitable income. With all its manufacturing facilities located in Karnataka, Emmvee’s operations are also exposed to regional risks such as adverse weather, political instability, or local disruptions.

Another key risk lies with its material subsidiary, Emmvee Energy and Power Ltd (EEPL), which has significant borrowings from Indian Renewable Energy Development Agency(IREDA) secured against 51 per cent of Emmvee’s equity stake in the unit. Any default could allow IREDA to take control of the subsidiary,  which could pose a serious threat to operations. EEPL is central to Emmvee’s business as it contributed 71.9 per cent of consolidated revenue and accounted for over 94 per cent of total assets as of June 30, 2025.