Mumbai: Vikram Solar Limited’s public issue concludes today, with the shares being allotted after the IPO was subscribed 54.63 times. The Kolkata-based solar module manufacturer’s IPO was held between August 19-21 with a strong interest across investor categories.
About 50% of the issue was reserved for QIBs, 15% was for NIIs, 35% for retail investors while the remainder was for existing employees. The IPO consisted of a fresh issue worth 4.52 crore shares and an Offer For Sale (OFS) of 1.75 crore shares. The issue, worth more than Rs.2,700 crore, saw a strong interest across the board, with the Qualified Investment Boards (QIBs) allocation getting oversubscribed 142.79 times, the Non-Institutional Investors (NIIs) saw a 50.90x oversubscription, while for retail investors it was 7.65 times.
“The Vikram Solar IPO drew exceptionally strong investor participation. Vikram Solar IPO grey market premium (GMP) hovered around 13% – 15%, implying a likely listing price in the upper range of analyst expectations. While near-term listing gains look promising given the subscription scale and grey market signals, the sustainability of performance will depend on execution discipline, margin expansion, and supportive policy frameworks,” Harshal Dasani, Business Head, INVasset PMS, said.
Before this IPO, the company’s market cap hovered at about Rs.12,000 crore. The company aims to use the proceeds to fund its ongoing projects, while the OFS portion will directly go to the selling shareholders.
Known to manufacture high-efficiency solar photovoltaic (PV) modules, the company aims to tap the growing demand for renewable energy in India. The Kolkata-based company is one of the top three solar module manufacturers in India, with a capacity to generate 1.41 GW of modules. It has supplied its products to leading government and private companies in India as well as clients in 39 countries across the world.
Currently, India produces enough solar modules to meet domestic needs, but export opportunities may face challenges as Chinese oversupply concerns could affect India’s competitiveness. Also, India still depends on China for crucial inputs like silicon wafers and solar cells, offering a threat to production, according to a report by SBI Capital.
Vikram Solar has so far addressed this with plans to move toward vertical integration with a solar cell manufacturing facility in Tamil Nadu and the US. How the company will address the competition and pricing challenges remains to be seen.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers should conduct their own research or consult with a qualified financial advisor before making any investment decisions.
