Vikram Solar Shares Make Modest Debut, List at 2% Premium
Vikram Solar, a solar PV module manufacturer, listed on BSE at ₹340.00 (2.40% premium) and NSE at ₹338.00 (1.81% premium), below the expected 11% premium. The ₹2,079.00-crore IPO was oversubscribed 54.63 times. The company plans to expand to 20.50 GW capacity by FY27 and enter solar cell production. Vikram Solar's revenue grew from ₹2,073.00 crore in FY23 to ₹3,423.00 crore in FY25, with a current order book of 10.34 GW. Analysts note concerns about customer dependency and raw material price fluctuations.
*this image is generated using AI for illustrative purposes only.
Vikram Solar, a prominent player in the solar PV module manufacturing sector, made its stock market debut with a modest premium, falling short of grey market expectations. The company's shares began trading on both major Indian stock exchanges, marking a significant milestone in its 17-year journey.
Listing Details
- BSE Listing: ₹340.00 (2.40% premium)
- NSE Listing: ₹338.00 (1.81% premium)
- IPO Price: ₹332.00
The listing performance was below the grey market expectations, which had indicated a potential 11% premium.
IPO Performance
The ₹2,079.00-crore Initial Public Offering (IPO) of Vikram Solar witnessed strong investor interest:
- Overall subscription: 54.63 times
- Qualified Institutional Buyers (QIBs): 142.79 times
- Non-Institutional Investors (NIIs): 50.90 times
- Retail Investors: 7.65 times
The IPO structure included a fresh issue of ₹1,500.00 crore and an offer for sale of ₹579.37 crore.
Company Overview
Vikram Solar, with over 17 years of experience in solar PV module manufacturing, has established a strong market position. The company has ambitious plans for expansion:
- Expansion target: 20.50 GW by FY27
- New venture: Entry into solar cell production
Financial Performance
The company has shown significant growth in recent years:
| Fiscal Year | Revenue |
|---|---|
| FY23 | ₹2,073.00 crore |
| FY25 | ₹3,423.00 crore |
Vikram Solar currently boasts an executable order book of 10.34 GW, indicating strong future prospects.
Analyst Perspectives
While acknowledging Vikram Solar's strong market position, analysts have highlighted two key areas of concern:
- Dependency on top 10 customers
- Vulnerability to fluctuations in raw material prices
These factors may influence the company's performance and should be considered by potential investors.
As Vikram Solar embarks on its journey as a publicly traded company, its performance will be closely watched by investors and industry observers alike. The company's expansion plans and strong order book suggest potential for growth, but market dynamics and execution will play crucial roles in determining its future success.
19
