Fujiyama Power Systems IPO opens today; brokerages see growth potential amid subsidies, import risks

Fujiyama Power Systems IPO

The Rs 828-crore IPO of Fujiyama Power Systems opened today. Analysts cite its strong manufacturing and distribution capabilities, but caution that the business remains exposed to risks arising from dependence on subsidies and Chinese imports. Reports highlight the company’s position in the rooftop solar industry, its expanding manufacturing capacity and market opportunity, while also flagging its working-capital intensity.

Fujiyama Power Systems public issue comprises a fresh issue of up to Rs 600 crore and an offer for sale of 1 crore shares. Fujiyama has set a price band of Rs 216-228 per share. The company raised Rs 247 crore from anchor investors on Wednesday. According to the IPO prospectus, Rs 180 crore from the fresh issue will go towards setting up a new manufacturing facility in Ratlam, Madhya Pradesh; Rs 275 crore will be used for repayment or prepayment of borrowings; and the rest will be used for general corporate purposes.

Fujiyama Power IPO: Manufacturing, distribution among key strengths

Fujiyama Power Systems is a 28-year-old player in the rooftop solar segment, offering on-grid, off-grid and hybrid systems, solar inverters, solar panels, lithium-ion and tubular batteries, solar management units, UPS systems and EV chargers. The company sells products under its UTL Solar and Fujiyama Solar brands and has a large distribution network of 725 distributors, 5,546 dealers, 1,100 exclusive “Shoppe” outlets and over 600 service engineers across India.

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Brokerage reports cite the company’s vertically integrated model and expanding manufacturing capacity as important strengths. HDFC Securities said that Fujiyama operates four facilities across Greater Noida, Parwanoo, Bawal and Dadri, and has recently added new inverter and lithium-ion battery lines. The proposed Ratlam project is expected to further increase capacity for solar panels, inverters and batteries and support expansion into western and southern markets.

Growth opportunity in rooftop solar industry

Master Capital Services said in its pre-listing note that the rooftop solar market in India is projected to grow at 40-43 percent CAGR from FY25 to FY30, driven by policy incentives, rising awareness and falling technology costs. It added that Fujiyama is well-placed to benefit from this trend due to its wide product portfolio, manufacturing capabilities and pan-India distribution network.

The company has reported strong recent financial performance. Revenue from operations rose to Rs 1,540.7 crore in FY25 from Rs 664.1 crore in FY23, while net profit increased to Rs 156.3 crore from Rs 24.4 crore in the same period. HDFC Securities said that the company has maintained double-digit operating margins and has been expanding backward integration across key product lines.

Fujiyama Power’s dependence on subsidies, imports

However, analysts also outline several risks in their assessments. HDFC Securities points to the company’s heavy dependence on imported raw materials, with 92 percent of procurement coming from China, which could be affected by supply disruptions or policy changes.

The brokerage also notes the company’s reliance on multiple central and state government subsidy programmes that support rooftop solar adoption. Any reduction or delay in such incentives may affect demand.

Other risks include working-capital intensity, concentrated manufacturing presence in northern India, regulatory approvals for new facilities, and competition from lower-cost suppliers in the solar value chain. Master Capital Services also highlights the sector-linked risks around rooftop installations, including site-specific constraints and the need for specialised design and customer approvals.

Share allotment for the IPO is expected on November 18, and listing is scheduled for November 20.

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