Solarium Green Energy is set to raise ₹105.04 crores through its Book Built Issue, entirely consisting of a fresh issue of 54.99 lakh shares. This offering opens on February 6, 2025, and closes on February 10, 2025, with allotment expected by February 11, 2025, and a tentative listing date on February 13, 2025. The price band for the IPO is set at ₹181 to ₹191 per share. With a lot size of 600 shares, retail investors must invest a minimum of ₹1,14,600, while High-Net-Worth Individuals (HNIs) need to apply for a minimum of 2 lots (₹2,29,200).

Market Capitalization and IPO Metrics
At the upper end of the price band (₹191), the market capitalization of Solarium Green Energy stands at approximately ₹398.22 crores. The book-running lead manager for this IPO is BEELINE CAPITAL ADVISORS PRIVATE LIMITED, while the registrar is LINK INTIME INDIA PRIVATE LIMITED. Spread X Securities Private Limited will act as the market maker for the offering.

Grey Market Premium and Subscription Status
As of February 5, 2025, the Grey Market Premium (GMP) for the Solarium Green Energy IPO is ₹27, suggesting a listing gain of approximately 7.85%. However, it’s important to note that GMP is speculative and does not provide a definitive outlook on the actual listing price. It merely reflects market sentiment and demand in the unorganized segment. The IPO’s live subscription status as of February 7, 2025, shows that the offering has been subscribed 1.52 times on its second day of the subscription period.

Solarium Green Energy Business and Financials
Solarium Green Energy is involved in providing turnkey solar solutions across diverse projects, including residential rooftop installations, commercial and industrial (C&I) rooftop and ground-mounted projects, as well as government projects. The company’s founders, Mr. Ankit Garg and Mr. Pankaj Vallabhbhai Gothi, bring over 20 years of combined experience in the renewable energy industry.

For the financial year ending September 30, 2024, the company reported revenues of ₹8,234.45 lakh, with an EBITDA of ₹1,216.44 lakh and a Profit after Tax (PAT) of ₹755.43 lakh. Over the past years, the company has shown growth in revenues and EBITDA, but PAT has fluctuated, which warrants a closer look for potential investors.

The company’s pre-issue earnings per share (EPS) stands at ₹10.39, with a post-issue EPS of ₹7.48 for FY24. The Price-to-Earnings (P/E) ratio is 18.38x pre-issue and 25.55x post-issue, which is below the industry P/E ratio of 35x. Solarium Green Energy’s Return on Capital Employed (ROCE) for FY24 stands at 54.18%, and the Return on Equity (ROE) is an impressive 124.38%, suggesting a high return on investor equity.

IPO Proceeds and Objectives
The company intends to use the net proceeds from the IPO for the following purposes:

1. Meeting working capital requirements – ₹7,100 lakh
2. General corporate purposes

These objectives align with the company’s need to expand its operations and strengthen its financial position, especially as it grows its presence in the solar energy sector.

Solarium Green Energy IPO Review: Should You Invest?
The Solarium Green Energy IPO is garnering attention due to its growth potential in the renewable energy space, which is witnessing strong demand for solar power solutions. Despite its solid financial metrics such as high ROE and ROCE, the valuation may be on the higher side, given the P/E ratio at 25.55x post-issue.

The Grey Market Premium reflects moderate investor demand, but considering the overall industry P/E ratio of 35x, the company seems fairly priced. Investors looking for listing gains should approach cautiously, as the 7.85% GMP is not significant enough to guarantee quick returns.

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

The Current active IPO are Eleganz Interiors, Readymix Construction, Solarium Green.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.

Join our Finance Saathi Telegram Channel for Regular Share Market, News & IPO Updates.