Solarium Green Energy, a leading provider of turnkey solar solutions, is set to launch its initial public offering (IPO) on February 6, 2025, with the subscription period closing on February 10, 2025. The company specializes in design, engineering, procurement, construction, and maintenance of solar power plants, catering to residential, commercial, industrial, and government projects.

IPO Details and Pricing

The Solarium Green Energy IPO is a Book Built Issue amounting to ₹ 105.04 Crores, consisting entirely of a fresh issue of 54.99 lakh shares. The price band is set at ₹ 181 to ₹ 191 per share, with a minimum lot size of 600 shares. Retail investors must invest at least ₹ 1,14,600, while HNIs need to purchase at least 1,200 shares, requiring a minimum investment of ₹ 2,29,200.

The market capitalization at the upper price band of ₹ 191 per share stands at ₹ 398.22 Crores. Beeline Capital Advisors Private Limited is the book running lead manager, while Link Intime India Private Limited is the registrar and Spread X Securities Private Limited is the market maker.

Grey Market Premium (GMP) Trends

As per market analysis, the Grey Market Premium (GMP) for Solarium Green Energy IPO is currently at ₹ 27, indicating an expected listing price of ₹ 206 per share. However, it is essential to note that GMP is unofficial and can fluctuate based on market conditions and demand.

Subscription Status and Anchor Investors

As of 11:00 AM on February 7, 2025, the Solarium Green Energy IPO is subscribed 1.08 times on its second day of bidding. The company has also raised ₹ 29.85 Crores from Anchor Investors, allocating 15.63 lakh shares at ₹ 191 per share.

Financial Performance and Valuation

Solarium Green Energy has demonstrated consistent financial growth, with revenues for the last three fiscals as follows:

• FY22: ₹ 16,788.87 Lakh

• FY23: ₹ 9,892.50 Lakh

• FY24: ₹ 17,780.83 Lakh

Similarly, the Profit After Tax (PAT) has shown a strong trajectory:

• FY22: ₹ 205.04 Lakh

• FY23: ₹ 173.86 Lakh

• FY24: ₹ 1,558.70 Lakh

The Return on Equity (ROE) for FY24 is 124.38%, while the Return on Capital Employed (ROCE) is 54.18%, reflecting strong operational efficiency. The pre-issue EPS is ₹ 10.39, and the post-issue EPS is ₹ 7.48, with a post-issue P/E ratio of 25.55x, making the IPO fairly valued compared to the industry P/E of 35x.

IPO Allotment and Listing Date

• Allotment Date: February 11, 2025

• Listing Date: February 13, 2025 (Tentative)

• Stock Exchange: BSE SME

Investors can check their IPO allotment status online by visiting the registrar's website and entering their application number, PAN, or DP Client ID.

Investment Recommendation

While the financial performance and valuation indicate a stable growth trajectory, the listing gains may be limited based on GMP trends. Considering market conditions and demand, investors should analyze risk factors before investing.

The Upcoming IPOs in this week and coming weeks are PS Raj Steels, Chandan Healthcare, Ajax Engineering, Voler Car, Maxvolt Energy, Hexaware Technologies.

The Current active IPO are Eleganz Interiors, Readymix Construction, Solarium Green, Ken Enterprises, Amwill Healthcare.

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