Fujiyama Power Systems Launches ₹828 Crore IPO to Fuel Rooftop Solar Expansion
Fujiyama Power Systems, a rooftop solar solutions provider, has announced an IPO to raise ₹828 crore. The offering includes a fresh issue of ₹600 crore and an offer for sale of ₹228 crore, with a price band of ₹216-228 per share. The IPO will run from November 13-17. Funds will be used for a new manufacturing facility in Ratlam (₹180 crore), debt repayment (₹275 crore), and general corporate purposes. The company operates under UTL Solar and Fujiyama Solar brands, with three domestic manufacturing facilities. Fujiyama's revenue in FY23 was ₹664.08 crore with a net profit of ₹24.36 crore. Motilal Oswal Investment Advisors and SBI Capital Markets are managing the IPO.
*this image is generated using AI for illustrative purposes only.
Fujiyama Power Systems, a prominent player in the rooftop solar solutions sector, has announced the launch of its Initial Public Offering (IPO) to raise ₹828 crore. The Greater Noida-based company aims to capitalize on the growing demand for sustainable energy solutions and expand its manufacturing capabilities.
IPO Details
| Particulars | Details |
|---|---|
| IPO Size | ₹828.00 crore |
| Fresh Issue | ₹600.00 crore |
| Offer for Sale | ₹228.00 crore |
| Price Band | ₹216 - ₹228 per share |
| IPO Date | November 13 - 17 |
Fund Utilization
The company has outlined clear objectives for the funds raised through this IPO:
| Purpose | Amount (in ₹ crore) |
|---|---|
| New Manufacturing Facility (Ratlam, MP) | 180.00 |
| Debt Repayment | 275.00 |
| General Corporate Purposes | Remaining funds |
Company Overview
Fujiyama Power Systems operates through two key brands: UTL Solar and Fujiyama Solar. The company currently has three domestic manufacturing facilities, showcasing its strong presence in the Indian solar market.
Financial Performance
The company has demonstrated impressive financial growth:
| Fiscal Year | Revenue (in ₹ crore) | Net Profit (in ₹ crore) |
|---|---|---|
| FY23 | 664.08 | 24.36 |
| FY22 | 1,540.67 | 156.33 |
This substantial increase in both revenue and net profit underscores the company's strong market position and operational efficiency.
IPO Management
The public offering is being managed by two financial institutions:
- Motilal Oswal Investment Advisors
- SBI Capital Markets
These book runners are expected to facilitate the IPO process.
Market Implications
The Fujiyama Power Systems IPO comes at a time when there's growing interest in renewable energy solutions, particularly in the rooftop solar segment. The company's expansion plans, including the new manufacturing facility in Ratlam, Madhya Pradesh, indicate its commitment to scaling operations and meeting the increasing demand for solar solutions.
Investors may view this IPO as an opportunity to participate in India's growing renewable energy sector. However, as with any investment, it's crucial to consider market conditions, company fundamentals, and individual risk appetite before making investment decisions.
The success of this IPO could potentially influence other players in the renewable energy sector, possibly encouraging more companies to consider going public.
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