Summary of this article
Vikram Solar IPO has been subscribed 0.46 times on Day 1 so far
Grey market premium at Rs 54 signals potential 16 per cent listing gains
IPO size is Rs 2,079.37 crore. Of this, Rs 1,500 crore is a fresh issue
Net proceeds to be utilised for funding Phase I and Phase II expansion projects.
FY25 revenue rose 37 per cent y-o-y to Rs 3,459 crore, and PAT grew 75 per cent
Vikram Solar's initial public offering (IPO) has opened for public subscription on August 19 and will close on August 21. The company has set the price band for the issue at Rs 315 to Rs 332 per share.
So far on the first day, Vikram Solar IPO received bids for 41.8 million shares against 45.3 million on offer, as of 2:20 PM. This reflects a subscription of 0.92 times, according to BSE data.
The non-institutional investors’(NII) category was subscribed 2.09 times, while the retail individual investors’ portion was subscribed 0.94 times. The employee quota saw subscription of 0.58 times, and the qualified institutional buyers’ (QIB) segment recorded 0.01 times bids so far.
Vikram Solar IPO GMP, Expected Listing Price
According to grey market observers, Vikram Solar IPO is commanding a grey market premium (GMP) of Rs 54 per share. At the upper band price, this translates into a premium of 16.27 per cent. That said, the expected listing price of its shares is likely to be at Rs 386 per share.
GMP is the unofficial price at which any IPO shares trade before they are officially listed on the exchanges. In other words, GMP is the extra premium investors are willing to pay above the issue price to secure shares before they list on the exchanges. However, analysts often caution that GMP should not be the sole factor while making decision to invest in an IPO. That said, GMP just offers a rough idea of the potential listing performance of the IPO shares, and is not a guarantee of actual returns.
Vikram Solar IPO Details – All You Need To Know
The Vikram Solar IPO has a size of Rs 2,079.37 crore and is a book-built issue. Of this amount, Rs 1,500 crore is a fresh issue and Rs 579.37 crore is an offer for sale (OFS).
The minimum bid size in the issue is 45 shares, which amounts to a minimum investment of Rs 14,940 for retail investors. For small NIIs, the minimum application size is 14 lots, or 630 shares, which amounts to Rs 2,09,160, while big NIIs are required to apply for a minimum of 67 lots or 3,015 shares, which amounts to Rs 10,00,980.
Under the offer structure, up to 50 per cent of the net issue is reserved for QIBs. At least 35 per cent is set aside for retail investors, and for NIIs, not less than 15 per cent of the issue is allocated.
According to the red herring prospectus, Vikram Solar plans to use the net proceeds for expansion purposes. From the Rs 1500 crore net proceeds, the company will allocate Rs 769.73 crore towards partial funding of capital expenditure for its Phase-I project. A further Rs 595.21 crore will be used to meet capital expenditure requirements for the Phase-II project.
The balance funds from the IPO will go towards general corporate purposes, the company said.
Vikram Solar Financial Performance
Vikram Solar reported a revenue of Rs 3,459.53 crore for FY25. In FY24 and FY23, this figure was Rs 2,523.96 crore and 2,091.91 crore, respectively. Between FY23 and FY25, its revenue grew at a compounded annual growth rate (CAGR) of 28.6 per cent. Its profit after tax (PAT) for FY25 came in at Rs 139.83 crore, up from Rs 79.72 crore in FY24 and Rs 14.49 crore in FY23. Over the three years, this represents a CAGR of 210.7 per cent. PAT margins consistently improved from 0.7 per cent in FY23 and 3.2 per cent in FY24 to 4 per cent in FY25.
Operating profit, or earnings before interests, taxes, depreciation and amortisation (Ebitda) increased from Rs 186.18 crore in FY23 to Rs 492.01 crore in FY25, reflecting a CAGR of 62.6 per cent. Ebitda margins improved from 8.9 per cent in FY23 to 15.8 per cent in FY24. However, in FY25, Ebitda margins stood at 14.2 per cent.
Assets stood at Rs 2,832.15 crore in FY25, up from Rs 2,476.29 crore in FY23, translating into a CAGR of 6.9 per cent. Net worth rose to Rs 1,241.99 crore in FY25 from Rs 365.20 crore in FY23, registering a CAGR of 84.4 per cent.
Meanwhile, the company’s debt declined from Rs 737.79 crore in FY23 to Rs 230.67 crore in FY25.
About Vikram Solar
Founded in 2005, Vikram Solar Ltd manufactures solar photovoltaic (PV) modules and also offers engineering, procurement and construction (EPC) services as well as operations and maintenance (O&M) services for solar power projects.
As per its official website, its product portfolio includes advanced modules such as Passivated Emitter and Rear Contact (PERC), Tunnel Oxide Passivated Contact (TOPCon) and Heterojunction Technology (HJT). The company operates manufacturing units in Falta SEZ, Kolkata, and Oragadam, Chennai, and has a distribution network spread across 23 states and three union territories.
