Vikram Solar IPO Launches: GMP at 16%, Is It Worth Investing?

Quick summary

• Vikram Solar launched its Rs 2,079-crore IPO for subscription from Tuesday to Thursday.
• The IPO includes a fresh issue worth Rs 1,500 crore and an Offer for Sale (OFS) of Rs 579 crore.
• Price band for the IPO is set at Rs 315-332 per share, with a lot size of 45 shares; the stock is commanding a gray market premium of 16%.
• Post issue, the company’s projected market capitalisation ranges between Rs 11,471-12,009 crore. Shares will be listed on BSE and NSE.
• Allocation: QIBs (50%), retail investors (35%), Non-Institutional Investors (15%).
• Vikram Solar operates globally with over 7 GW shipment across 39 countries; current installed capacity stands at 4.5 GW with plans to expand capacity to up to 20.5 GW by FY27 while diversifying into solar cell manufacturing and battery storage systems.
• Financial performance: Revenue rose at a CAGR of 29%, EBITDA CAGR stood at 63%, and PAT expanded by a staggering CAGR of over two years from FY23-FY25.
• SBI Securities recommends subscribing due to strong domestic solar demand driven by government schemes such as PM Kusum.

Indian Opinion Analysis

Vikram Solar’s IPO launch signifies growing investor confidence in India’s renewable energy sector as it coincides with robust domestic demand catalyzed by governmental initiatives like PM Kusum and utility-scale projects in solar power generation. its expansion into backward integration through solar cell production could bolster margins down the line-a critical move given current profitability levels lagging behind Western peers.

The valuation metrics such as EV/EBITDA suggest alignment with industry benchmarks despite the growing competition within India’s rapidly expanding renewable space. For retail investors seeking exposure to clean energy innovation tied closely to public policy support in India-this offering reflects an optimistic outlook bolstered further上午