Solar91 Cleantech IPO: Detailed Analysis and Investment Outlook

Solar91 Cleantech Limited, based in Jaipur, is a dynamic player in the solar energy sector, offering cutting-edge solar solutions for residential, industrial, and commercial establishments. Committed to a sustainable future, Solar91 Cleantech specializes in providing full-cycle Engineering, Procurement, and Construction (EPC) services for solar energy projects worldwide. Their slogan, “Every ray of sunshine is an opportunity for a brighter, sustainable future,” reflects their vision to harness solar energy to build a greener world.

The company has launched a Book Built Issue IPO aiming to raise ₹106.00 Crores by issuing 54.36 lakh shares, with the price band set at ₹185 to ₹195 per equity share. The IPO details, including the subscription period, are yet to be announced, but the expected listing date is projected to follow shortly after the closure of the IPO.

IPO Details and Subscription Status

The Market Capitalization of Solar91 Cleantech at the ₹195 IPO price is estimated at ₹400.01 Crores. With a lot size of 600 shares, retail investors are required to invest a minimum of ₹1,17,000, while High-Net-Worth Individuals (HNIs) will need to invest at least ₹2,34,000 (2 lots).

As of December 23, 2024, the Grey Market Premium (GMP) for the Solar91 Cleantech IPO is reported to be ₹50, indicating a potential 25.64% listing gain. The expected listing price is estimated to be around ₹245, which shows positive investor sentiment ahead of the IPO.

Company Leadership and Industry Expertise

Solar91 Cleantech is led by a team of highly experienced professionals, each contributing their expertise to the company’s success in the solar industry. The leadership team includes:

• Mr. Prateek Agrawal, who brings over nine years of experience in the solar industry, playing a crucial role in shaping the company’s strategy.
• Mr. Saurabh Vyas, with over nine years of experience, is responsible for developing new business areas and leveraging his educational background in the solar energy domain.
• Mr. Sandeep Gurnani, specializing in battery technology, has contributed significantly to technological advancements within the company.
• Mr. Dhawal Gaurang Vasavada, with nine years of experience, is at the forefront of Solar91 Cleantech’s growth and expansion initiatives.

The team’s deep knowledge and experience in the solar energy sector have positioned the company for continued success as they focus on expanding their services to meet global renewable energy demands.

Financial Performance and Valuation Insights

For the fiscal year ending September 30, 2024, Solar91 Cleantech reported revenues of ₹5,255.92 lakh, which reflects a strong growth trajectory from previous years. The company posted EBITDA of ₹647.58 lakh and a Profit After Tax (PAT) of ₹425.42 lakh for the same period. This indicates a healthy increase in profitability and an ongoing upward trend in the company's financials.

The company has a Return on Capital Employed (ROCE) of 37.29% and a Return on Equity (ROE) of 52.52% for FY24, underscoring its operational efficiency. The pre-issue P/E ratio stands at 81.25x, and the post-issue P/E ratio is 153.52x, which is significantly higher than the industry average P/E ratio of 80x. While these metrics suggest the IPO is priced at a premium, they also reflect the company’s strong growth potential and market position.

Investment Recommendation

Given the company’s strong financial performance, leadership in the solar energy industry, and the 25.64% potential listing gain, Solar91 Cleantech’s IPO presents an attractive opportunity for risky investors looking to invest in the growing renewable energy sector. Although the P/E ratio appears high relative to industry peers, the company’s financial growth and future expansion plans may justify the premium.

Investors should consider these factors when evaluating the Solar91 Cleantech IPO and be aware of the potential for listing gains. However, as with any investment in the stock market, it is essential to evaluate personal risk tolerance before committing to the IPO.

The Upcoming IPOs in this week and coming weeks are Indo Farm, Technichem Organics, Leo Dry Fruits, Solar91 Cleantech, Rosmerta Digital and Avanse Financial.

 and .The Current active IPO is Citichem IndiaAnya Polytech