Solar Photovoltaic module manufacturer, Vikram Solar Ltd, has gained approval from the market regulator SEBI with the aim of launching its IPO (Initial Public Offering). This IPO comprises the fresh issue of up to ₹1500 crore and an Offer-for-sale of up to 17.45 million equity shares by promoters. The IPO is structured with a face value of ₹10 per equity share.
The proceeds of ₹793.63 raised from the fresh issue will be utilized to invest in its subsidiary, VSL Green Power Pvt Ltd. Some funds will be used to handle the purchase of a new 3000 MW Solar cell. Funds of ₹602.95 crore will be used for expanding the solar module manufacturing capacity, growing its manufacturing capacity from 3,000 MW to 6,000 MW as part of Phase II expansion efforts.
The IPO’s book-running lead managers are JM Financial Ltd, Nuvama Wealth Management Ltd, UBS Securities India Pvt Ltd, Equirus Capital Pvt Ltd, and PhillipCapital (India) Pvt Ltd, while Link Intime India will serve as the registrar.
Vikram Solar Limited, formerly Vikram Solar Private Limited, is one of India’s biggest makers of solar panels. As of March 31, 2024, it also has a large operational capacity, producing solar photovoltaic (PV) modules that support the country’s shift toward renewable energy.
Since its establishment in 2009, it has started manufacturing with a 12 MW capacity, and has now grown to 3.50 gigawatts (GW). To enhance market demand, it is focusing on production capacity to 10.50 GW by FY26 and 15.50 GW by FY27, including building a 3 GW solar cell manufacturing plant in Tamil Nadu. This firm is present in a total of 23 states and three union territories and works with a network of distributors, dealers, and system integrators. This company has a sales office in the US and a procurement office in China.
In FY24, Vikram Solar has generated a revenue of ₹2510 crore. If we compared it to FY23, the revenue stood at ₹2073 crore, reflecting a growth in the revenue by 21.08%, while, the Profit After Tax (PAT) rose by ₹79 crore in FY24.
Vikram Solar IPO Prospectus:
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | To be Updated Soon |
Vikram Solar Company Financial Report
Amount ₹ in Crores
| Period Ended | Revenue | Expense | Profit After Tax |
| 2022 | ₹1743.05 | ₹1822.49 | ₹62.94 |
| 2023 | ₹2091.91 | ₹2073.04 | ₹14.49 |
| 2024 | ₹2523.96 | ₹2405.04 | ₹79.72 |
Vikram Solar IPO Valuation – FY2024
Vikram Solar IPO valuations detail like Earning Per Share (EPS), Price/Earning P/E Ratio, Return on Net Worth (RoNW), and Net Asset Value (NAV) details.
| Earning Per Share (EPS): | ₹3.08(Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 17.90% |
| Net Asset Value (NAV): | ₹17.21 |
Peer Group Comparison
| Company | EPS | PE Ratio | RoNW % | NAV | Income |
| Premier Energies Limited | 6.93 | 191.48 | 35.06 | 15.63 | 659.89 Cr. |
|
Websol
Energy
System Limited |
(29.99) | NA | (112.29) | 26.70 | 107.72 Cr. |
Objects of the Issue
- Gross proceeds from the Fresh Issue
- (Less) Offer related expenses to be borne by our Company in relation to the Fresh Issue
- Net Proceeds from the Fresh Issue
IPO Lead Managers aka Merchant Bankers
- JM Financial Limited
- Nuvama Wealth Management Limited
- UBS Securities India Private Limited
- Equirus Capital Private Limited
- PhillipCapital (India) Private Limited
