Vikram Solar Limited, one of India’s leading solar photovoltaic (PV) module manufacturers, made a modest debut on the stock exchanges with a 2% premium over its IPO price on the National Stock Exchange (NSE). While the debut was positive, it fell short of the grey market’s expectations of over 10% listing gains.

IPO Details

The Vikram Solar IPO was a book-built issue worth ₹2,079.37 crore, consisting of:

• Fresh Issue: 4.51 crore shares aggregating ₹1,500 crore.

• Offer for Sale (OFS): 1.74 crore shares worth ₹579.37 crore.

• Price Band: ₹315–₹332 per share.

• Final Issue Price: ₹332 (upper band).

• Market Capitalisation at IPO: ₹12,009 crore.

• Lot Size: 45 shares (₹14,940 minimum investment for retail).

Lead managers included JM Financial, Nuvama Wealth, UBS Securities, Equirus Capital, and PhillipCapital, with MUFG Intime India as the registrar.

Subscription & Anchor Investment

The IPO saw strong investor demand, being subscribed 24.71 times overall by the final day.

Additionally, Vikram Solar raised ₹620.81 crore from anchor investors at the upper price band of ₹332 per share, allocating 1.86 crore equity shares to anchors.

Grey Market vs Listing Performance

Leading up to listing, the Vikram Solar IPO GMP (Grey Market Premium) indicated negligible activity, hovering around ₹0. Despite speculative talk of 10%+ listing gains, the shares listed with only a 2% premium, highlighting once again that grey market trends are unreliable predictors of actual stock performance.

Objectives of the IPO

The company plans to utilise the proceeds for:

1. Funding Phase-I CapEx – ₹7,697 million investment in VSL Green Power Pvt. Ltd.

2. Funding Phase-II CapEx – ₹5,952 million for further expansion in VSL Green Power Pvt. Ltd.

3. General Corporate Purposes – operational and strategic initiatives.

About Vikram Solar

Founded in 2006, Vikram Solar has emerged as one of India’s largest PV module manufacturers, with 4.5 GW of installed capacity as of March 31, 2025. Its factories are strategically located at Falta SEZ, West Bengal and Oragadam, Tamil Nadu, offering easy access to ports, rail, and road networks.

Key highlights:

• Manufacturing advanced PERC, N-Type, and HJT bifacial solar modules.

• Recognised as a BloombergNEF Tier-1 Manufacturer (Q1 2025) and recipient of the EUPD Top Brand PV Seal (2025).

• Export presence in 39 countries with 7.12 GW modules shipped globally.

• Aiming to expand capacity to 20.5 GW by FY27, including backward integration into solar cells and battery storage solutions (BESS up to 5 GWh).

The company has also executed prestigious projects such as:

• The world’s first fully solarized airport at Cochin.

• India’s first floating solar plant.

Industry Outlook

India’s renewable energy sector is undergoing rapid transformation, targeting 500 GW non-fossil fuel capacity by 2030 with 280 GW solar energy. Solar capacity already stands at 116 GW as of June 2025, a sharp rise from under 1 GW in 2010.

Government initiatives such as the PLI scheme for solar manufacturing, Green Energy Corridor, and National Green Hydrogen Mission are expected to provide significant tailwinds to domestic solar manufacturers like Vikram Solar.

Business Strengths

• Leading solar PV module manufacturer with recognised brand equity.

• Strong R&D capabilities and advanced automated facilities.

• Expanding distribution and export footprint.

• Experienced leadership and consistent Bloomberg Tier-1 ranking.

• Backward integration plans into solar cells and storage.

Risks and Concerns

• Heavy dependence on solar module sales (98% of revenues in FY25).

• Supply chain dependence on imports from China and Southeast Asia.

• High reliance on U.S. export market (96% of FY25 exports).

• Raw material price volatility in wafers and solar cells.

• Execution risks in expansion and backward integration projects.

Market Outlook

Although the Vikram Solar IPO listing gains were modest compared to market buzz, analysts believe the long-term story remains intact. With strong demand drivers, policy support, and expansion into integrated solar manufacturing, Vikram Solar is well-positioned to capture India’s renewable energy growth.

For investors, while immediate returns may have been limited, the stock holds potential as a long-term green energy play.

The Upcoming IPOs in this week and coming weeks are Amanta Healthcare, Rachit Paints, Abril Paper Tech, Sneha Organics, Sugs Lloyd, Anlon Healthcare, NIS Management, Sattva Engineering Construction, Globtier Infotech, Current Infraprojects, Vikran Engineering.

The Current active IPO are Shivashrit Foods, Anondita Medicare, Classic Electrodes (India), ARC Insulation & Insulators.

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