Solarium Green Energy Limited, a company specializing in turnkey solar solutions, is set to open its Initial Public Offering (IPO) on February 6, 2025. With a price band set between ₹181 and ₹191 per equity share, the company is offering 54.99 lakh shares through a fresh issue, raising an estimated ₹105.04 crores. The subscription period for the Solarium Green Energy IPO will close on February 10, 2025, with the allotment date scheduled for February 11, 2025. The shares are expected to be listed on the BSE SME segment on February 13, 2025.

Solarium Green Energy provides a complete range of services, including design, engineering, procurement, construction, and operation and maintenance of solar power plants. Their expertise spans residential rooftop projects, commercial and industrial rooftop projects, and government projects. The IPO proceeds will be utilized for meeting working capital requirements and for general corporate purposes, supporting the company's ongoing expansion in the renewable energy space.

Solarium Green Energy IPO Key Details

The price band for the Solarium Green Energy IPO is ₹181 to ₹191 per equity share, with a lot size of 600 shares. The market capitalization of the company at the upper price band is estimated to be ₹398.22 crores. Retail investors will need to invest a minimum of ₹1,14,600 for one lot, while High-Net-Worth Individuals (HNIs) must apply for two lots, amounting to ₹2,29,200.

The company is being guided by BEELINE CAPITAL ADVISORS PRIVATE LIMITED, who is the book running lead manager for the IPO. The registrar for the issue is LINK INTIME INDIA PRIVATE LIMITED, while Spread X Securities Private Limited is the market maker.

Financial Performance and Metrics

Solarium Green Energy has shown steady growth in its financials. For the period ending September 30, 2024, the company reported revenues of ₹8,234.45 lakh, up from ₹9,892.50 lakh in FY22. The company’s EBITDA for FY24 stands at ₹1,216.44 lakh, while the Profit After Tax (PAT) was ₹755.43 lakh. This solid performance is indicative of the company’s ongoing profitability and growth potential within the renewable energy sector.

Solarium Green Energy’s key performance indicators are equally impressive. The pre-issue EPS stands at ₹10.39, with a post-issue EPS projected at ₹7.48 for FY24. The P/E ratio for the pre-issue is 18.38x, while the post-issue P/E ratio is 25.55x, against an industry P/E ratio of 35x, signaling that the IPO is reasonably priced relative to its industry peers. The company’s Return on Capital Employed (ROCE) for FY24 is 54.18%, and its Return on Equity (ROE) is 124.38%, further highlighting its efficient use of capital and profitability.

Grey Market Premium (GMP)

As of February 5, 2025, the Grey Market Premium (GMP) for the Solarium Green Energy IPO stands at ₹27, indicating a listing gain of 7.85%. The GMP is a useful indicator of pre-listing market sentiment and reflects investor demand in the unregulated grey market. However, it is important to note that trading based on the GMP is speculative and unregulated, and investors should consider other factors before making investment decisions.

Solarium Green Energy IPO Live Subscription Status

As of 11:00 AM on February 6, 2025, the Solarium Green Energy IPO has been subscribed 0.13 times on its first day of the subscription period. The live subscription data is available at the BSE website for investors to track the real-time subscription status.

Solarium Green Energy IPO Allotment Status

The IPO allotment status for Solarium Green Energy will be available on February 11, 2025. To check the status, investors can visit the registrar’s website, select Solarium Green Energy Limited IPO, and enter their application number, PAN, or DP Client ID.

Objectives of the Solarium Green Energy IPO

Solarium Green Energy plans to use the net proceeds from the IPO for:

1. ₹7,100 lakh to meet its working capital requirements.
2. For general corporate purposes, which will support further growth and business expansion.

Solarium Green Energy IPO Review and Conclusion

Solarium Green Energy is a leading player in the renewable energy sector, specializing in turnkey solar solutions. The company's strong financial performance, experienced leadership team, and growing demand for solar energy solutions position it well for long-term growth. However, considering the listing gains indicated by the GMP, we recommend avoiding this IPO for listing gains, as it might not offer significant short-term upside. Investors looking for long-term value in renewable energy may find this IPO an interesting opportunity.

The Upcoming IPOs in this week and coming weeks are Eleganz Interiors, PS Raj Steels, Chandan Healthcare, Ajax Engineering, Hexaware Technologies.

The Current active IPO are Readymix Construction, Solarium Green, Ken Enterprises, Amwill Healthcare,Chamunda Electricals.

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