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Solarworld Energy Solutions IPO Day 2 LIVE: Solarworld Energy Solutions' initial public offering (IPO) entered its second day of bidding today. The issue sailed through on first day amid retail and NII demand.

The ₹490-crore IPO, which is set to close on September 25, has a price band set between ₹333 and ₹351 per share. At the upper end of this range, the company's valuation exceeds ₹3,000 crore.

The IPO consists of a fresh issue of equity shares worth ₹440 crore and an offer-for-sale (OFS) of shares worth ₹50 crore by the promoter, Pioneer Facor IT Infradevelopers.

Proceeds from the fresh issue will be used to invest in the company’s subsidiary, Kartik Solarworld, to partly fund the development of a 1.2 GW Solar PV TopCon manufacturing facility in Pandhurana, Madhya Pradesh, and for general corporate purposes.

Ahead of the share sale, the company said it raised ₹220.5 crore from anchor investors.

Solarworld Energy Solutions' IPO grey market premium (GMP) stands at ₹65. Given the upper end of the price band is ₹351 per share, the estimated listing price is ₹416. This implies an expected gain of ₹65 per share, translating to an approximate listing premium of 18.52% over the issue price.

Track this space for all the live updates on Solarworld Energy Solutions IPO

Their customers comprise public sector undertakings and commercial and industrial clients such as SJVN Green Energy Limited, Haldiram Snacks Private Limited, Ethnic Food Manufacturing Private Limited, and Samiksha Solarworld Private Limited.

The solar sector in India is growing at a very fast pace, driven by government support, the push for clean energy, and new technologies. Between FY 2018 and 2026, the country added about 97 GW of solar capacity, growing at a strong CAGR of 26%. India now aims to reach 280 GW of solar by 2030, which will be a major part of its overall renewable energy target of 500 GW. To achieve this, the government has introduced several measures to encourage domestic manufacturing.

These include the PLI scheme to provide financial incentives, and the imposition of duties on imported modules to promote local production. Such steps are creating a strong foundation for India to reduce dependence on imports and become a global hub for solar manufacturing. Solarworld Energy Solutions Limited is well-placed to benefit from this growth. It is one of the leading integrated solar module manufacturers in the country, with capabilities across manufacturing, EPC, and O&M services.

This integrated model helps the company provide end-to-end solutions to customers, improving long-term relationships and revenue visibility. The Company has also invested in advanced technologies and is expanding its reach in both domestic and international markets. A growing order book adds visibility to future revenues, while strong execution capabilities give it a competitive edge. Investors may consider the IPO as a potential long-term investment opportunity.

The company’s order book remains strong, with: ₹11,982 million from EPC projects, ₹12,717 million from BESS projects, and ₹579 million from O&M contracts, reflecting robust demand visibility.

Its client base primarily includes solar power developers, utility-scale projects, and government-supported renewable energy initiatives, highlighting its credibility in executing large and complex solar assignments.

Basis of Allotment Date: September 26, 2025

Initiation of Refunds: September 29, 2025

Credit of Shares to Demat Account: September 29, 2025

IPO Listing Date: September 30, 2025

The IPO is priced at a premium to traditional EPC peers, but the shift toward O&M and higher-margin services provides a case for sustained re-rating. Near-term listing gains look likely given sectoral momentum and grey-market signals. Over the long term, the investment case will rest on Solarworld’s ability to consistently deliver 18–20% returns on equity, scale its O&M book, and maintain capital discipline in a highly competitive solar contracting market.

The company operates on an asset-light business model for its operations under the CAPEX model, where customers are responsible for acquiring real estate. This approach minimizes capital expenditures and fixed costs, providing the company with greater flexibility and scalability to meet customer needs, deliver customized solutions, and respond swiftly to changing market conditions.

Its EPC contracts are typically shorter in duration, ranging from 11 to 18 months, which helps maintain low working capital requirements.

The company plans to use the fresh proceeds from the share sale for the following purposes:

For part-financing the establishment of the Pandhurana Project, the total expected investment is ₹575.30 crore, out of which ₹420.00 crore will be funded through IPO proceeds.

The remaining portion of the IPO proceeds will be utilised for general corporate purposes.

The Grey Market Premium (GMP) for Solarworld Energy Solutions' IPO stands at ₹65. Given the upper end of the price band is ₹351 per share, the estimated listing price is ₹416 ( ₹351 + ₹65). This implies an expected gain of ₹65 per share, translating to an approximate listing premium of 18.52% over the issue price.

SolarWorld Energy Solutions Ltd. is evolving from a conventional EPC contractor into a fully integrated renewable energy platform, with a strong order book of ₹2,527.81 crore providing near-term revenue visibility. Its expansion into solar modules, cells, and BESS positions the company for long-term growth.

At the IPO price of ₹465, valuations (P/E 32.87x, P/B 8.42x) are attractive versus industry averages. Investors should note stretched working capital and high revenue concentration, with 79.19% of FY25 revenue coming from a single customer.

Recommendation: Subscribe for long-term investment, supported by backward integration, storage-led opportunities, and strong valuation comfort.

With the QIB quota ending at nil yesterday, bids were seen in the segment today. As of 10.38 am, the QIB portion was booked 0.01%, with 24,948 shares bids for.

The initial public offering (IPO) of solar energy solutions provider Solarworld Energy Solutions Ltd was subscribed 1.23 times on the first day of bidding on Tuesday. According to data from the NSE, the IPO received bids for 99,18,048 shares against 80,93,092 shares on offer.

The Retail Individual Investors (RIIs) segment saw strong interest, with a subscription of 4.56 times, while the non-institutional investors' quota was subscribed 1.45 times.

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