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.

Vikram Solar, the Kolkata-based solar PV module manufacturer, has successfully raised Rs 621 crore from anchor investors as it prepares for its initial public offering (IPO). This pre-IPO funding round has attracted several high-profile institutional investors, signaling strong interest in the company's public debut.

Anchor Investors and IPO Details

The anchor book saw participation from renowned global financial institutions, including:

• Goldman Sachs Fund
• Morgan Stanley India Investment Fund
• BNP Paribas
• HSBC
• Citigroup

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

• Rs 1,500.00 crore through fresh issue of shares
• Rs 579.00 crore through an offer for sale (OFS)

This public offering is expected to reduce the promoter's stake in the company from 77.6% to 63%, broadening the ownership base.

Company Performance and Growth

Vikram Solar has demonstrated strong growth:

The company's order book has seen a significant increase:

• Previous: 4,376 MW
• Current: 10,341 MW
• Growth: 136.3%

Expansion Plans

Vikram Solar is embarking on an ambitious expansion strategy:

• Current installed capacity: 4.5 GW
• Target capacity: 20.5 GW
• Expansion focus: New facilities in Tamil Nadu

IPO Pricing and Financial Considerations

While the company shows strong growth, potential investors should note:

• The IPO appears to be priced at a premium, with a P/E multiple of 85.9
• This valuation is nearly double that of industry peers:
  • Waaree Energies: P/E of 45.8
  • Premier Energies: P/E of 47.0

Additionally, there's an increase in trade receivables:

• Trade receivables reached 45% of revenue
• This suggests extended collection cycles, which investors may want to consider

Conclusion

Vikram Solar's successful anchor investment round and ambitious IPO plans reflect the growing interest in India's renewable energy sector. While the company demonstrates strong growth and expansion plans, the premium pricing of the IPO and the increase in trade receivables are factors that potential investors may want to evaluate carefully. As always, it's advisable for investors to conduct thorough due diligence and consider their risk appetite before making investment decisions.