Vikram Solar Limited, one of India’s largest solar module manufacturers, is coming up with its much-awaited Initial Public Offering (IPO). The IPO, which opens for subscription on August 19, 2025, and closes on August 21, 2025, is expected to raise ₹2,079.37 crore through a combination of fresh equity issuance and an Offer for Sale (OFS).

About Vikram Solar

Vikram Solar is a prominent player in India’s solar manufacturing ecosystem, with an operational capacity of 4.5 GW for solar PV modules. The company manufactures N-Type and HJT bifacial PV modules, which are in high demand globally due to higher efficiency and durability. Its factories are strategically located at Falta SEZ, Kolkata (West Bengal) and Oragadam, Chennai (Tamil Nadu), both with easy access to ports, rail, and road connectivity. This helps the company cater to both domestic and international markets.

The company is led by Mr. Gyanesh Chaudhary, Chairman, Managing Director, and Promoter, who has over 20 years of industry experience. He has been recognised with awards such as Visionary of the Year at the Solar Quarter State Leadership Awards 2024. His leadership is expected to drive future growth for Vikram Solar as it continues to scale its manufacturing capabilities.

IPO Details

The total issue size of the Vikram Solar IPO is ₹2,079.37 crore. Out of this:

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

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

The price band has been fixed at ₹315 to ₹332 per equity share. The minimum lot size for retail investors is 45 shares, translating to a minimum investment of ₹14,940. High Net-Worth Individuals (HNIs) are required to invest in a minimum of 14 lots (630 shares) amounting to ₹2,09,160.

The IPO is being managed by JM Financial Limited, Nuvama Wealth Management Limited, UBS Securities India, Equirus Capital Private Limited, and PhillipCapital (India) Private Limited as book-running lead managers. The registrar for the IPO is MUFG Intime India Private Limited.

The expected market capitalisation of Vikram Solar at the upper price band of ₹332 is ₹12,009 crore.

Important Dates

• IPO Open Date: August 19, 2025

• IPO Close Date: August 21, 2025

• Allotment Date: August 22, 2025

• Refunds/credit initiation: August 25, 2025

• Tentative Listing Date: August 26, 2025

The shares will be listed on both BSE and NSE.

Objectives of the Issue

Vikram Solar plans to utilise the net proceeds from the IPO for the following purposes:

1. Funding capital expenditure through investment in its wholly-owned subsidiary, VSL Green Power Private Limited (Phase-I Project), requiring ₹7,697.30 million.

2. Further funding capital expenditure for Phase-II Project through VSL Green Power Private Limited, requiring ₹5,952.08 million.

3. General corporate purposes, including working capital and operational needs.

This expansion plan is aimed at boosting Vikram Solar’s production capacity and supporting India’s clean energy targets.

Financial Performance

Vikram Solar has shown strong revenue and profit growth over the past three years:

• Revenue from operations:

  • FY2023: ₹20,919 million

  • FY2024: ₹25,239 million

  • FY2025: ₹34,595 million

• EBITDA:

  • FY2023: ₹2,048 million

  • FY2024: ₹3,999 million

  • FY2025: ₹5,280 million

• Profit After Tax (PAT):

  • FY2023: ₹145 million

  • FY2024: ₹797 million

  • FY2025: ₹1,398 million

This indicates a steady improvement in profitability and margins.

Valuation Metrics

The IPO’s valuation is on the higher side compared to industry peers:

• Pre-issue EPS (FY24): ₹4.61

• Post-issue EPS (FY24): ₹3.87

• Pre-issue P/E Ratio: 72.01x

• Post-issue P/E Ratio: 85.88x

• Industry P/E Ratio: ~44x

Other financial ratios:

• ROCE (FY24): 24.49%

• ROE (FY24): 16.57%

• RoNW: 11.26%

These figures show that while the company has good profitability and return metrics, the IPO is fully priced and offers limited upside at listing.

Grey Market Premium (GMP)

As of August 14, 2025, the GMP for Vikram Solar IPO is ₹0, indicating no expected listing gains in the unlisted market. It is important to note that GMP is unofficial and unregulated, and should not be the sole factor in deciding IPO applications.

Allotment Process

The allotment of Vikram Solar IPO shares will be finalised on August 22, 2025. Investors can check their allotment status by visiting the registrar’s website and entering their application number, PAN, or DP ID.

Analyst Recommendation

Given the company’s strong growth trajectory, leadership position in the solar sector, and increasing global demand for renewable energy solutions, Vikram Solar has good long-term prospects. However, considering the high valuation and zero grey market premium, analysts recommend investors AVOID the IPO for listing gains. Long-term investors with high risk appetite may consider subscribing from a growth perspective, but short-term traders are advised to stay cautious.

The Upcoming IPOs in this week and coming weeks are Mangal Electrical Industries, LGT Business Connextions, Vikram Solar, Gem Aromatics, Studio LSD, Shreeji Shipping Global, Patel Retail.

The Current active IPO are Regaal Resources, Mahendra Realtors and Infrastructure.

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