Vikram Solar Limited, one of India’s leading solar photovoltaic (PV) module manufacturers, has opened its ₹2,079.37 crore initial public offering (IPO) for subscription. The IPO, comprising a fresh issue of ₹1,500 crore and an offer for sale of ₹579.37 crore, will remain open from August 19 to August 21, 2025, with listing scheduled for August 26, 2025 on both the BSE and NSE.

The IPO has been priced in the range of ₹315 to ₹332 per equity share, requiring a minimum investment of 45 shares (₹14,940) for retail investors and 630 shares (₹2,09,160) for HNIs. As of 10:30 AM on Day 2, the offer saw a subscription of 0.89x, signalling moderate demand, with stronger interest likely to come from institutional investors in the final phase of the bidding period.

Business Overview and Strengths

Vikram Solar operates two state-of-the-art manufacturing facilities—one located in the Falta SEZ (West Bengal) and the other in Oragadam (Tamil Nadu)—providing a combined module manufacturing capacity of 4.5 GW. The company produces high-efficiency N-Type and HJT bifacial PV modules, catering to both domestic and international markets. The factories are strategically located near ports, rail and road networks, aiding logistics and exports.

Led by Mr. Gyanesh Chaudhary, a distinguished industry veteran with over 20 years of experience, Vikram Solar has consistently expanded its operations, portfolio and client base in an industry with rapidly rising demand due to global decarbonisation goals.

Financial Performance

Vikram Solar has recorded steady growth in revenue and profitability over the past three fiscal years:

EBITDA margins improved meaningfully over this period and PAT expanded almost tenfold from FY23 to FY25. The company also reported ROCE of 24.49% and ROE of 16.57% in FY24—healthy, but slightly lower compared to some global peers.

Valuation and Subscription Considerations

Despite strong business fundamentals and robust growth potential, the valuation appears rich at the upper end of the price band:

• Post-issue EPS: ₹3.87

• Post-issue P/E: 85.88x

• Industry P/E: 44x

This suggests that the IPO is fully priced and leaves limited headroom for near-term upside. Furthermore, the Grey Market Premium (GMP) is currently ₹0, indicating muted investor appetite for listing gains.

Recent IPOs in the renewables space have drawn strong interest, but the high valuation multiple combined with a subdued subscription rate (0.89x) as of Day 2 points to investors adopting a wait-and-watch approach, potentially due to the cyclical nature of the sector and increasing competition in the domestic solar module market.

Use of IPO Proceeds

Vikram Solar plans to utilise the net proceeds mainly for:

1. Partial funding of Phase-I capital expenditure for its subsidiary VSL Green Power Private Limited (₹7,697.30 million).

2. Funding Phase-II capital expenditure in the same subsidiary (₹5,952.08 million).

3. General corporate purposes.

These investments are targeted towards capacity expansion and diversification into upstream operations, positioning the company for long-term scalability.

Analyst View

The long-term structural story for solar manufacturing in India remains compelling, driven by favourable policy support, a strong push toward Atmanirbhar Bharat, and rising global demand for solar energy solutions. Vikram Solar is well-placed to benefit from this momentum owing to its scale, experience and access to export markets.

However, given the premium valuation, zero GMP, and a moderate subscription trend, analysts recommend caution for investors aiming to gain from immediate listing gains. Long-term investors who are comfortable with sector-specific risks and who believe in the strategic expansion plans of the company may consider taking a position, but listing-day traders may want to avoid the issue at this stage.

Conclusion

The Vikram Solar IPO provides exposure to one of India’s leading solar module manufacturers with strong operational capacity, robust expansion plans, and a track record of revenue growth. Nevertheless, the high valuation and absence of grey market momentum suggest that near-term upside may be limited. Investors should evaluate their risk appetite and investment horizon carefully before making a decision.

The Upcoming IPOs in this week and coming weeks are NIS Management, Sattva Engineering Construction, Globtier Infotech, Current Infraprojects, Anondita Medicare, Classic Electrodes (India), Vikran Engineering, Shivashrit Foods, ARC Insulation & Insulators.

The Current active IPO are Mangal Electrical Industries, LGT Business Connextions, Vikram Solar, Gem Aromatics, Shreeji Shipping Global, Patel Retail, Studio LSD.

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