Vikram Solar IPO in focus: Vikram Solar’s initial public offering (IPO) is scheduled to kick off for subscription on Tuesday, August 19, and will remain open until Thursday, August 21.
The company aims to raise ₹2,079.37 crore through the offering, which is a combination of a fresh issue of 4.52 crore shares aggregating to ₹1,500 crore and an offer for sale of 1.75 crore shares aggregating to ₹579.37 crore.
The IPO price band is set at ₹315 to ₹332 per share. Retail investors can apply for a minimum of 45 shares in one lot and can apply for up to 13 lots. At the upper end of the IPO price band, ₹332 apiece, retail investors are required to make a minimum investment of ₹14,940 per lot.
Let us take a look at some of the key points mentioned in the Vikram Solar RHP:
About the Company: The company, a manufacturer of solar photovoltaic modules, began operations in 2009 with an installed capacity of 12.00 MW, which has now grown to 4.50 GW. To cater to rising demand, it is executing significant greenfield and brownfield expansion projects, aiming to increase installed solar PV module manufacturing capacity to 15.50 GW by FY2026 and 20.50 GW by FY2027.
Backward Integration into Solar Cell Manufacturing: As part of its growth strategy, the company is integrating backward into the solar value chain by setting up a solar cell manufacturing facility in Gangaikondan, Tamil Nadu. The facility will have two units with capacities of 3.00 GW and 9.00 GW, targeted for completion by FY2027.
Strategic Diversification into Battery Energy Storage Systems: The company also plans to foray into battery energy storage systems (BESS) through a greenfield project in Tamil Nadu with an initial capacity of 1.00 GWh, expandable to 5.00 GWh by FY2027.
This move aims to tap into the growing BESS demand while positioning the company as a leader in integrated energy generation and storage solutions, boosting both revenues and profitability. Its solar product portfolio includes high-efficiency PERC modules, N-type modules, and HJT modules in bifacial and monofacial variants.
Diverse Domestic Base and Expanding Global Footprint: The company serves a broad domestic client base, including NTPC, NLC India, GIPCL, and leading private IPPs such as Adani Green, AMPIN Energy, Azure Power, and JSW Energy. Internationally, it caters to marquee players like PureSky Development and Sundog Solar, with exports contributing 21.63% of revenue in FY2023, 61.58% in FY2024, and 1.00% in FY2025.
As of March 31, 2025, it has shipped over 7.12 GW of solar PV modules to 39 countries, supported by a sales office in the US and a procurement office in China.
Order Book: As of March 31, 2025, the company’s order book stood at 10,340.82 MW, 2.3 times its total rated capacity, with 6,424.93 MW under execution and 3,915.89 MW yet to be executed.
Key wins in CY2024 include large projects for GIPCL, NTPC Renewable Energy, NLC India, AMPIN Energy, and Sterling and Wilson, along with a 1,000 MWp high-efficiency module order and 1.40 GW from two C&I solutions providers, supported by the ALMM enforcement from April 2024.
Financials: The revenue from operations increased to ₹3,423 crore in FY25, from ₹2,511 crore in FY24 and ₹2,073. crore in FY2023. EBITDA rose to ₹492.01 crore in FY25, compared to ₹398 crore in FY24 and ₹186 crore in FY23.
However, the EBITDA margin moderated to 14.37% in FY25 from 15.87% in FY24, though it was still higher than 8.98% in FY23.
The net profit has surged to ₹139.83 crore in FY25 from ₹79.72 crore in FY24 and ₹14.49 crore in FY23, with the PAT margin improving to 4.08% from 3.17% and 0.70%, respectively.
Operates in a Highly Competitive Industry: The market for solar PV modules is intensely competitive and continuously evolving. Some of its key competitors across its business include Waaree Energies Limited, Mundra Solar PV Limited (Adani Solar), ReNew Photovoltaic Private Limited, and Goldi Solar Private Limited.
Key Risks: In FY2025, 80.68% of imported raw material costs were sourced from China, East Asia, and Southeast Asia, compared to 61.42% in FY2024 and 57.47% in FY2023. Any restrictions on imports from these regions could adversely affect operations, financial performance, and cash flows.
The company, certain directors (including promoters), and one corporate promoter are involved in legal proceedings, which may carry reputational and financial implications. Revenue is also highly concentrated, with the top five customers accounting for 77.50% and the top ten customers 88.72% of FY2025 revenue from operations.
Objectives of the Issue: The company proposes to use the proceeds from the issue towards partial funding of capital expenditure for the Phase-I Project, funding of capital expenditure for the Phase-II Project, and general corporate purposes.
Allotment and Listing Details: The allotment of shares is expected to be finalized on August 22, 2025, with a tentative listing on both the BSE and NSE scheduled for Tuesday, August 26, 2025.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
