Vikram Solar's Rs 2,079-crore IPO sails through on Day 1; should you apply?

The institutional investors who participated in the anchor round included Goldman Sachs Fund, Morgan Stanley India Investment Fund, BNP Paribas, HSBC, Citigroup, ICICI Prudential Life Company and SBI General Insurance Company, according to a circular uploaded on BSE's website.

Also, UTI Mutual Fund (MF), Franklin Templeton MF, Kotak Mahindra MF, Nippon India MF and Edelweiss MF have been allotted shares in the anchor round.

As per the circular, the company has allotted 1.87 crore equity shares to 43 funds at Rs 332 apiece, taking the total fundraising to Rs 621 crore.

The Rs 2,079-crore initial public offering (IPO) with a price band of Rs 315 to Rs 332 per share would be open for subscription during August 19 to August 21.

Should you apply?

Siddharth Maurya, Founder & Managing Director, Vibhavangal Anukulakara Pvt. Ltd. said the listing reflects "faith in the long-term growth story of clean energy".

"With robust policy support and increasing investor interest in green infrastructure, these listings reflect faith in the long-term growth story of clean energy. Although company performance will vary, the industry as a whole is likely to experience significant capital flows. For investors, this serves as a reminder that renewable energy is not merely an environmental imperative, but also a sound economic opportunity. As investment advisers, we observe this trend influencing portfolios and creating new channels of sustainable wealth creation," said Maurya.

Gaurav Garg of Lemonn Markets Desk advised investors to take a long-term perspective on the stock.

“Vikram Solar’s dominant market position, large integrated expansion plan, and solid industry tailwinds make it a quality contender in the renewable sector. While current valuations are at a premium and recent profit jump raises questions on sustainability, the company’s growth plans and solar sector policy support offer strong value creation potential over the next several years. Invest with a long-term perspective," said Garg.

Geojit Investments Ltd, the wholly owned subsidiary of Geojit Financial Services, gave a 'Subscribe' rating for the IPO.

"At the upper price band of Rs 332, Vikram Solar is valued at 25x EV/EBITDA (FY25), which is reasonable relative to peers. Despite a stretched P/E compared to peers, improving margins, reduced debt, and a strong order book support its growth outlook. Backed by policy tailwinds, aggressive expansion, backward integration, and entry into energy storage, the company is well-positioned to benefit from India’s renewable energy push. Hence, we recommend a ‘Subscribe’ rating on a long-term basis," said the brokerage.

IPO details

The IPO includes fresh issues of equities worth up to Rs 1,500 crore and an offer for sale (OFS) of over 1.74 crore shares, valued at around Rs 579.37 crore at the upper end of the price band, by its promoters.

Of the fresh issuance, the company plans to use the proceeds for funding capital expenditure for investment in its wholly owned subsidiary, VSL Green Power Private Ltd, for both Phase I and Phase II of the project.

Vikram Solar commenced its manufacturing operations in 2009 with an installed solar PV module manufacturing capacity of 12 MW has grown to 4.50 GW installed capacity as of the date.

According to a CRISIL report, the company holds one of the largest capacities among non-captive manufacturers on the Ministry of New & Renewable Energy's approved list of module manufacturers, with 2.85 GW listed as of June 2025.

Vikram Solar has two solar PV module manufacturing facilities located in West Bengal and Tamil Nadu, and a solar cell manufacturing facility with two units, in Gangaikondan, Tamil Nadu. It has established a pan-India presence, serving 19 states and two Union Territories.

The company's key domestic customers include prominent government entities, such as NTPC, Neyveli Lignite Corporation, and Gujarat Industries Power Company and large private independent power producers (IPPs), like ACME Cleantech Solutions Adani Green Energy, Azure Power India, JSW Energy and Rays Power Infra, among others.

In terms of financials, Vikram Solar's revenue from operations increased by 36% to Rs 3,423 crore in fiscal 2025 from Rs 2,511 crore in the preceding fiscal, similarly, profit after tax rose 75% to Rs 140 crore in fiscal 2025 from Rs 80 crore in fiscal 2024.

JM Financial, Nuvama Wealth Management, UBS Securities, Equirus Capital and PhillipCapital are book-running lead managers, while Link Intime India is the registrar for the IPO.