Vikram Solar shares are set to make their stock market debut on August 26 and are expected to list at around 11 percent premium over the issue price, according to latest grey market trends. The issue garnered strong investor demand in the initial public offering.
The Rs 2,079-crore IPO, which was open for subscription between August 19 and 21, was subscribed 54.63 times. The price band was fixed at Rs 315-332 per share. Ahead of the issue, the company raised Rs 621 crore from anchor investors.
Vikram Solar, which began operations in 2009 with 12 MW capacity, has expanded to 4.50 GW of installed solar PV module capacity as of date. It is among the leading solar energy solutions providers in India, with a portfolio covering high-efficiency PV modules, EPC and O&M services. Its client list includes NTPC and Adani.
The company plans to scale up solar PV module capacity to 15.5 GW by FY26 and 20.5 GW by FY27, and is also diversifying into solar cell manufacturing with a 12 GW facility planned in Tamil Nadu by FY27. In addition, it is setting up a greenfield battery energy storage project of 1 GWh, expandable to 5 GWh by FY27.
Commenting on the valuation, Narendra Solanki, Head Fundamental Research – Investment Services, Anand Rathi Shares and Stock Brokers, said, "On the valuation front, based on annualised FY25 earnings, the company is seeking a P/E of 85.8 times and a post-issue market capitalisation of around Rs 12,009 crore, which makes the issue appear aggressively priced. The business has high capex requirements and lower margin profile, along with client concentration and global supply chain exposure. However, a strong order book of 10.3 GW, backward integration, and government support provide comfort for long-term investors."
Akhilesh Desai, Research Analyst at Ajcon Global Services, said, "The Indian solar power sector is set for rapid growth, driven by policy push and rising clean energy demand. Vikram Solar has shown solid revenue and profit growth. Short-term investors may book profits on listing, while long-term investors with higher risk appetite can hold for sector-led growth."
Shivani Nyati, Head of Wealth at Swastika Investmart, noted, "The company has built a strong position in the solar PV module segment but remains dependent on its top 10 customers and is exposed to raw material price fluctuations. Any decline in demand could affect revenue and profitability. Future growth will also depend on the successful execution of its new Tamil Nadu facility. The IPO has drawn strong demand from both institutional and retail investors, and the grey market premium is positive."
Proceeds from the fresh issue will be used for capital expenditure in its wholly owned subsidiary VSL Green Power Pvt Ltd for both Phase I and Phase II projects.
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