Vikram Solar IPO subscribed 54.63 times on 3rd day of bidding; should you apply?

Vikram Solar IPO subscribed 54.63 times on 3rd day of bidding; should you apply?

Solar module maker Vikram Solar's initial public offer got subscribed 54.63 times on Wednesday, the second day of bidding.

The IPO received bids for 2,47,81,57,740 shares against 4,53,61,650 shares on offer, as per NSE data.

The non-institutional investors portion received 50.9 times subscription, while the quota for Retail Individual Investors (RIIs) got subscribed 7.65 times. Qualified Institutional Buyers (QIBs) part received 142.79 times subscription.

Vikram Solar on Monday mobilised Rs 621 crore from anchor investors.

The Rs 2,079-crore initial public offering (IPO) with a price band of Rs 315 to Rs 332 per share will conclude on Thursday.

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 Rs 2,079 crore IPO witnessed strong investor interest, closing with an overall subscription of 10.27x. Demand was led by Non-Institutional Investors at 31.23x, while retail participation was robust at 5.67x and QIBs built momentum on the final day at 2.75x. The strong subscription reflects broad-based confidence in India’s solar growth story and Vikram Solar’s leadership, backed by its expansion plans to 20.5GW modules and 12GW cells by FY27. While valuations at a P/E of 72x are at a premium to peers, the company’s improving financial performance, marquee clientele, and industry tailwinds make it a compelling long-term renewable energy play," 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.

The IPO includes fresh issue 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.