Fujiyama Power Systems Launches Rs 828 Crore IPO: A Solar Power Play
Fujiyama Power Systems, a solar power company, has launched its IPO to raise Rs 828 crore. The price band is set at Rs 215-228 per share, with a lot size of 65 shares. The offering includes a fresh issue of up to Rs 600 crore and an offer for sale of up to 1 crore shares by promoters. The company has already raised Rs 246.89 crore from anchor investors at Rs 228 per share. Funds will be used for a new manufacturing facility, debt repayment, and general corporate purposes. Fujiyama Power Systems operates four manufacturing facilities in Northern India and has shown significant growth, with revenue increasing from Rs 664.08 crore in FY23 to Rs 1,540.68 crore in FY25.
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Fujiyama Power Systems, a prominent player in the solar power industry, has launched its Initial Public Offering (IPO) to raise Rs 828 crore. The company, known for its rooftop solar products under the UTL Solar and Fujiyama Solar brands, is offering shares at a price band of Rs 215-228.
IPO Details
| Particulars | Details |
|---|---|
| Issue Size | Rs 828 crore |
| Price Band | Rs 215 - Rs 228 |
| Lot Size | 65 shares |
| Fresh Issue | Up to Rs 600 crore |
| Offer for Sale | Up to 1 crore shares by promoters |
| Closing Date | November 17 |
Anchor Investment
Fujiyama Power Systems has already secured a strong start by raising Rs 246.89 crore from 15 anchor investors. Notable participants include:
- Nippon India Mutual Fund
- Tata Mutual Fund
- BNP Paribas
These anchor investors have been allocated shares at Rs 228 per share, which is at the upper end of the price band.
Utilization of Funds
The net proceeds from the IPO will be strategically allocated as follows:
| Purpose | Amount (in Rs crore) |
|---|---|
| New manufacturing facility in Ratlam, Madhya Pradesh | 180.00 |
| Debt repayment | 275.00 |
| General corporate purposes | Remaining balance |
Company Overview
Fujiyama Power Systems operates four manufacturing facilities in Northern India, specializing in rooftop solar products. The company has shown impressive growth in recent years:
| Financial Year | Revenue from Operations (in Rs crore) | Net Profit (in Rs crore) |
|---|---|---|
| FY23 | 664.08 | 24.37 |
| FY25 | 1,540.68 | 156.34 |
| Q1 FY26 (3 months ended June 30, 2025) | 597.35 | 67.59 |
The company's financial performance demonstrates substantial growth in both revenue and profitability over the past two years.
Market Implications
This IPO comes at a time when the renewable energy sector, particularly solar power, is gaining significant traction in India. Fujiyama Power Systems' public offering could be seen as a strategic move to capitalize on the growing demand for solar solutions and to strengthen its position in the market.
Investors interested in the renewable energy sector and looking for exposure to the solar power industry might find this IPO worth considering. However, as with any investment decision, it's crucial to conduct thorough research and consider one's risk appetite before participating.
The success of this IPO could potentially pave the way for more companies in the renewable energy sector to go public, further boosting India's green energy initiatives.
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