Vikram Solar, a key player in India's renewable energy sector, has unveiled ambitious plans to significantly expand its solar cell manufacturing capacity. The company's Chairman and Managing Director, Gyanesh Chaudhary, announced their target to reach 12 GW capacity by the fiscal year 2027, marking a substantial increase from their current capabilities.

Addressing India's Solar Manufacturing Gap

The expansion strategy is aimed at addressing a critical gap in India's renewable energy infrastructure. Despite the country's ambitious solar energy targets, it currently faces limited domestic solar cell manufacturing capacity. Vikram Solar's expansion plans are poised to play a crucial role in supporting India's renewable energy goals and reducing dependence on imports.

Diversification into Battery Energy Storage

In a strategic move to enhance its product portfolio, Vikram Solar is venturing into the battery energy storage systems (BESS) market. This diversification is expected to enable 24-hour solar energy availability, addressing one of the key challenges in solar power adoption – the intermittency of energy generation.

Global Demand and Supply Chain Shifts

Chaudhary highlighted growing global demand for solar products across various markets, including Europe, Australia, the Middle East, and the United States. Notably, he observed a shift in supply chains away from China, presenting new opportunities for Indian manufacturers.

Growth Prospects and Partnerships

The company anticipates healthy margin growth, driven by its new capacities and strategic partnerships. Vikram Solar has joined forces with technology providers like L&T for project execution, which is expected to enhance its operational efficiency and market competitiveness.

Successful IPO Launch

Vikram Solar recently launched its Initial Public Offering (IPO) worth Rs 2,079.37 crore. The IPO received a strong market response, being oversubscribed more than four times by the third day of bidding. The company's shares were scheduled to be listed on August 26, marking a significant milestone in its growth journey.

Conclusion

Vikram Solar's ambitious expansion plans, coupled with its diversification into battery storage and successful IPO, position the company as a significant player in India's renewable energy landscape. As the global solar market continues to evolve, with shifting supply chains and increasing demand, Vikram Solar appears well-positioned to capitalize on these trends and contribute to India's renewable energy targets.

Vikram Solar's Initial Public Offering (IPO) has garnered significant investor interest, achieving 2.19 times oversubscription on the second day of bidding. The strong demand across various investor categories highlights the market's positive reception to the solar energy company's public offering.

Subscription Details

The IPO saw robust participation across different investor segments:

• Retail Segment: Subscribed 1.91 times
• Non-Institutional Investors: Bid 5.68 times the allotted quota
• Qualified Institutional Buyers: Showed 4% participation

Grey Market Premium

The grey market is showing a premium of Rs 48.00 for Vikram Solar shares, suggesting a potential listing price of Rs 380.00. This represents a 14.5% increase from the upper price band of Rs 332.00, indicating the possibility of attractive listing gains for investors.

IPO Details

Vikram Solar aims to raise a total of Rs 2,079.00 crore through this IPO, which consists of:

• Fresh equity issue worth Rs 1,500.00 crore
• Offer for sale amounting to Rs 579.00 crore

Company Overview

Vikram Solar is a prominent player in the solar energy sector with:

• Current production capacity of 4.5 GW
• Track record of shipping over 7 GW of modules to more than 39 countries

Expansion Plans

The company has ambitious growth plans:

• Increase capacity to 15.5 GW by FY26
• Further expansion to 20.5 GW by FY27

Financial Highlights

For the most recent fiscal year, Vikram Solar reported:

Analyst Recommendation

SBI Securities has issued a 'subscribe' rating for the Vikram Solar IPO. They noted that at the upper price band:

• The stock trades at 85.9 times FY25 earnings
• EV/EBITDA multiple stands at 21.4 times

The strong oversubscription and positive grey market premium suggest investor confidence in Vikram Solar's business model and growth prospects in the renewable energy sector.