The Solar91 Cleantech IPO is set to open on December 24, 2024, with a fresh issue of 54.36 lakh shares. This book-built issue aims to raise capital to expand its presence in the renewable energy sector, particularly within the solar energy solutions market. The IPO is expected to close on December 27, 2024, with the allotment finalized by December 30, 2024, and the listing on BSE SME on January 1, 2025.

While the price band for the IPO has yet to be announced, the company’s growth prospects in the distributed renewable energy market, particularly through solar power installations, make it a noteworthy opportunity for potential investors.

About Solar91 Cleantech Limited

Solar91 Cleantech Limited, incorporated in 2015, provides Engineering, Procurement, and Construction (EPC) services for solar energy systems. The company primarily caters to commercial, industrial, and residential sectors, aiming to reduce energy consumption through rooftop solar and distributed solar systems. Solar91’s offerings also extend to open access solutions, group captive solutions, and agro PV, along with solar investment opportunities.

The company’s primary business models include:

• EPC (Engineering, Procurement, Construction): Offering solar system solutions to the commercial and industrial sectors.
• IPP (Independent Power Producer): Solar projects developed and operated by Solar91 through wholly owned subsidiaries.
• O&M (Operations and Maintenance): Providing maintenance and operational support for solar projects, both under the EPC and IPP models.

In addition to domestic operations, Solar91 Cleantech has also expanded internationally, having successfully completed an EPC project in Kenya. As of September 30, 2024, Solar91 operates in 13 states across India and has successfully commissioned 191 projects across India and 1 project in Africa, with a total capacity of 94 MW.

Key Business Segments

• Engineering, Procurement, and Construction (EPC): Solar91 offers turnkey solutions for solar system installations in the commercial and industrial sectors. The EPC model enables the company to manage the entire lifecycle of a project, from design and procurement to installation and commissioning.

• Independent Power Producer (IPP): Under this model, Solar91 owns and operates solar energy projects through its subsidiaries. These projects are run to generate power for the company’s own use or sold to third parties under long-term power purchase agreements (PPAs).

• Operations and Maintenance (O&M): Solar91 provides operation and maintenance services for solar projects developed under both the EPC and IPP models. This ensures the longevity and operational efficiency of the systems, ensuring returns for investors and clients alike.

Competitive Strengths

Solar91 Cleantech has several key competitive advantages that have contributed to its success in the renewable energy sector:

1. Wide Geographical Presence: Solar91 has established a strong footprint in 13 states across India, providing comprehensive solar solutions to a wide range of customers, and has expanded its operations internationally.

2. Unique Cluster-Based Distributed Solar Model: The company has pioneered a cluster-based approach to solar installations, allowing for more efficient and scalable solutions. This model supports decentralized solar power generation, ensuring energy is produced closer to the point of consumption.

3. Large Order Book: Solar91 boasts a substantial order book with several commercial and industrial clients. This is further bolstered by favorable national policies that support solar energy adoption across sectors.

4. Fastest Turnaround Time: The company is known for its quick project execution, ensuring that solar installations are completed within short timelines, a crucial factor for businesses looking to cut costs quickly through renewable energy solutions.

5. In-House Design and Government Approvals Team: Solar91 has a skilled in-house team capable of managing the entire project lifecycle, including design, implementation, and obtaining necessary government approvals for solar projects.

6. Digitally Enabled Processes: The company leverages advanced digital technologies to streamline operations, ensuring seamless integration and timely project delivery.

Solar91 Cleantech IPO Investment Considerations

The Solar91 Cleantech IPO presents an opportunity for investors to tap into the fast-growing renewable energy sector, particularly the solar energy segment. With a focus on distributed solar solutions and a well-established presence in the commercial and industrial markets, Solar91 is well-positioned to capitalize on India’s increasing demand for clean energy.

Investors should take note that while the price band for the IPO is yet to be announced, Solar91’s solid growth trajectory, robust order book, and favorable national policies for solar energy adoption make this IPO an attractive proposition for those looking to invest in the renewable energy and solar power sectors.

The minimum investment required for retail investors will likely be based on a lot size once the price band is released. Investors should stay updated with further announcements about the IPO and consider their investment goals when evaluating the opportunity.

Conclusion

The Solar91 Cleantech IPO is a promising opportunity for investors looking to participate in the renewable energy sector. With a strong market presence, a unique business model, and a proven track record of executing solar projects efficiently, Solar91 is poised for continued growth. The IPO opens on December 24, 2024, and closes on December 27, 2024, with a listing date of January 1, 2025. Investors should consider this IPO if they are interested in the clean energy revolution and wish to be part of a company actively contributing to the solar energy transition.