Vikram Solar IPO: A Comprehensive Guide for Indian Investors
Vikram Solar Ltd. is set to launch its initial public offering (IPO) to raise over Rs 2,000 crore from the primary market. The company is a leading solar energy solutions provider, and its IPO has generated significant interest among Indian investors.
About Vikram Solar Ltd.
Vikram Solar Ltd. is one of the largest manufacturers of solar panels in India. The company also provides engineering, procurement, and construction (EPC) services for solar projects. With a strong presence in the Indian solar energy market, Vikram Solar is well-positioned to benefit from the growing demand for renewable energy in the country.
Vikram Solar IPO Details
The Vikram Solar IPO is a book-build issue worth Rs 2,079.37 crore. The mainboard IPO comprises a fresh issue of 4.52 crore shares, amounting to Rs 1,500 crore, and an offer-for-sale (OFS) of 1.75 crore shares, aggregating to Rs 579.37 crore.
The IPO price band has been fixed between Rs 315 and Rs 332 per share. To participate in the IPO, retail investors need to bid for a single lot size of 45 shares, requiring an investment of Rs 14,175. Small Non-Institutional Investors can apply for at least 14 lots, amounting to an investment of Rs 2,09,160. Big Non-Institutional Investors can participate in the IPO by bidding for a minimum of 67 lots, leading to a minimum investment of Rs 10,00,980.
Grey Market Premium (GMP) and Listing Price
Ahead of the IPO launch, the grey market premium (GMP) for the Vikram Solar IPO indicated a premium of nearly 20% over the upper limit of the issue price band. According to InvestorGain, the GMP for Vikram Solar IPO stood at Rs 52 as of 4.30 p.m. on Aug. 18. The latest GMP indicates a listing price of Rs 384 per share at a premium of 15.66%, compared to the upper limit of the IPO price band.
Note: GMP does not represent official data and is based on speculation.
IPO Schedule and Listing Date
Investors can participate in the IPO from Aug. 19 to Aug. 21. Allotment of shares is proposed to be finalized on Aug. 22. The company will transfer shares to the demat accounts of successful bidders on Aug. 25, and refunds to non-allottees will be done on the same day.
Shares of Vikram Solar are tentatively scheduled to be listed on the BSE and NSE on Aug. 26.
Investor Allocation and Book-Running Lead Manager
Qualified Institutional Buyers (QIBs) will be offered a maximum of 50% of the net issue. Retail investors will be allocated at least 35% of the net offer, and the remaining 15% will be reserved for Non-Institutional Investors (NIIs).
JM Financial is the book-running lead manager, and MUFG Intime India is the registrar for the IPO.
Use of IPO Proceeds
The company will use proceeds from the IPO to fund capital expenditure and for general corporate purposes.
Financial Performance
Vikram Solar reported a 75.4% year-on-year (YoY) increase in profit after tax (PAT) at Rs 139.83 crore in FY25, compared to Rs 79.72 crore in FY24. Total income rose 37.1% YoY to Rs 3,459.53 crore in FY25 from Rs 2,523.96 crore in the preceding fiscal. Total debt dropped 71.5% YoY to Rs 230.67 crore in FY25 from Rs 808.33 crore in FY24.
Conclusion
The Vikram Solar IPO is an opportunity for Indian investors to participate in the growth story of a leading solar energy solutions provider. With a strong financial performance and a growing demand for renewable energy in India, Vikram Solar is well-positioned for long-term growth.
However, investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.
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