Fujiyama Power Systems Limited Announces IPO Plans with Diverse Solar Product Portfolio
By ScanX News Team
Fujiyama Power Systems Limited, a solar products and solutions provider, has announced its IPO plans. The company, founded in 2017, offers a range of solar products under the brands UTL SOLAR and Fujiyama Solar. Fujiyama Power Systems reported a revenue of ₹9,246.88 million in FY 2024, with a CAGR of 35.07% from FY 2022 to FY 2024. The IPO proceeds will be used for establishing a new manufacturing facility, repaying outstanding borrowings, and general corporate purposes. The offer includes an OFS component from promoters Pawan Kumar Garg and Yogesh Dua. Key strengths include a diversified product portfolio, robust distribution network, and strong financial performance. Potential risks involve manufacturing operations, product dependency, and reliance on imports.
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Fujiyama Power Systems Limited Announces IPO Plans
Fujiyama Power Systems Limited , a diversified solar products and solutions provider founded in 2017, has announced its plans to go public. The company, known for its brands UTL SOLAR and Fujiyama Solar, offers a wide range of products including bifacial modules, monofacial modules, glass-glass modules, and on-grid solar inverters.
Company Overview
Headquartered in Delhi, Fujiyama Power Systems has established itself as a well-rounded leader in the solar industry. The company boasts a strong track record of technological development and product innovation, supported by a robust distribution network and post-sale service capabilities.
Financial Performance
Fujiyama Power Systems has demonstrated strong financial growth in recent years:
| Fiscal Year | Revenue (₹ in millions) |
|---|---|
| 2024 | 9,246.88 |
| 2023 | 6,640.83 |
| 2022 | 5,068.38 |
The company has shown a compound annual growth rate (CAGR) of 35.07% in revenue from Fiscal 2022 to Fiscal 2024.
Key Financial Metrics
| Metric | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|
| Return on Net Worth (%) | 18.91 | 12.62 | 15.76 |
| Basic EPS (₹) | 1.62 | 0.87 | 1.02 |
| Diluted EPS (₹) | 1.61 | 0.87 | 1.02 |
As of March 31, 2024, the Net Asset Value (NAV) per share stood at ₹8.56.
IPO Details
While specific details about the IPO size and price band are yet to be announced, the company has outlined its plans for utilizing the proceeds:
- Establishing a new manufacturing facility in Ratlam, Madhya Pradesh (₹1,800 million)
- Repayment of outstanding borrowings (₹2,750 million)
- General corporate purposes
Offer for Sale
The IPO will include an Offer for Sale (OFS) component, with the following details:
| Selling Shareholder | Type | No. of Shares | Weighted Avg. Cost of Acquisition (₹) |
|---|---|---|---|
| Pawan Kumar Garg | Promoter | 10,000,000 | 5.65 |
| Yogesh Dua | Promoter | 10,000,000 | 5.65 |
Company Strengths
Fujiyama Power Systems highlights several key strengths:
- Diversified portfolio of solar products and solutions
- Track record of technological development and product innovation
- Robust distribution network and post-sale service capabilities
- Quality-centric and precision-driven large-scale manufacturing infrastructure
- Experienced promoters and senior management
- Strong financial performance and growth
Risk Factors
Potential investors should consider the following risk factors:
- Manufacturing facilities subject to operating risks
- Dependency on specific product categories
- Reliance on imports, particularly from China
- Dependency on third-party suppliers
- Risks associated with capital expenditure plans
- Dependency on retail network
- History of negative cash flow in Fiscal 2022
- Reliance on multiple funding sources for growth
Industry Comparison
Compared to listed peers, Fujiyama Power Systems shows competitive financial metrics:
| Company | Revenue (₹ in millions) | P/E | EPS (Basic) (₹) | RONW (%) |
|---|---|---|---|---|
| Fujiyama Power Systems | 9,246.88 | [●] | 1.62 | 18.91 |
| Waaree Energies | 113,976.09 | 45.11 | 48.05 | 30.82 |
| Premier Energies | 31,437.93 | 159.32 | 6.93 | 36.69 |
| Exicom Tele Systems | 10,195.58 | 22.93 | 6.70 | 8.86 |
| Insolation Energy | 7,371.74 | 96.94 | 2.66 | 51.20 |
Investors are advised to review the company's prospectus for complete details before making investment decisions.
