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Vikram Solar IPO Day 1 Live: The initial public offering for solar module manufacturer Vikram Solar will be open for subscription from August 19 to August 21. Vikram Solar IPO price band has been established between ₹315 and ₹332 per share.

The Vikram Solar IPO features new equity issues amounting to ₹1,500 crore and an offer for sale (OFS) of more than 1.74 crore shares, which is estimated to be around ₹579.37 crore at the highest point of the price range, provided by its promoters.

Regarding the fresh equity issuance, the company intends to utilize the funds to support capital expenditures for investments in its fully-owned subsidiary, VSL Green Power Private Ltd, across both Phase I and Phase II of the project.

Vikram Solar began its manufacturing journey in 2009, starting with a solar PV module manufacturing capacity of 12 MW, which has expanded to an installed capacity of 4.50 GW to date.

The book-running lead managers for the IPO include JM Financial, Nuvama Wealth Management, UBS Securities, Equirus Capital, and PhillipCapital, with Link Intime India serving as the registrar.

(Stay tuned for more updates)

The company has an extensive presence in the domestic market having pan-India presence in 19 states and 2 union territories, through an extensive distributor network which grew from 41 authorised distributors as on September 30, 2024 to 83 authorized distributors as on date and 64 dealers as on September 30, 2024 to more than 250 dealers as on the date. The company’s distribution team is designed to increase its footprint in the Western, Northern and Southern regions of India that have higher solar demand.

India is actively developing its solar manufacturing capabilities, and in Fiscal 2025, India’s cumulative manufacturing capacity reached approximately 89.00 GW for solar module and approximately 25.00 GW for solar cell. India aims to build its presence across all stages of solar manufacturing over the next two to three years. India’s strong manufacturing capabilities and reputation as supplier of high-quality solar products contribute to strengthening its position as a global player.

“At the upper price band of ₹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 Geojit Investments.

India’s renewable capacity addition targets (500 GW non-fossil by 2030) continue to drive large-scale utility demand. At the same time, rooftop and C&I adoption is accelerating due to corporate sustainability targets and rising grid tariffs. With the integration of Battery Energy Storage Systems (BESS), solar plus storage projects are becoming viable, which significantly enlarges the addressable market. This multi-segment demand profile ensures balanced growth across both bulk utility orders and high-margin distributed generation markets.

“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 Gaurav Garg, Lemonn Markets Desk. 

The company’s portfolio of solar energy products consists of (i) p-type monocrystalline silicon based Passivated Emitter and Rear Contact (“PERC”) modules; (ii) N-Type monocrystalline silicon (“N-Type”) modules; and (iii) ntype monocrystalline silicon based heterojunction technology (“HJT”) modules.

Vikram Solar IPO subscription status is 22% on day 1. The retail portion was subscribed 26%, and NII portion has been booked 42%, Qualified Institutional Buyers (QIBs) portion is yet to receive bids.

The company has received bids for 1,00,98,090 shares against 4,53,61,650 shares on offer, at 10:48 IST, according to data on BSE.

As of March 31, 2025, the company had an Order Book of 10,340.82 MW (which is 2.30 times of its total rated capacity as of FY 2025), of which 6,424.93 MW comprise projects/operations which are already under execution and 3,915.89 MW comprise projects which are yet to be executed.

The company's key domestic customers include entities, such as NTPC, Neyveli Lignite and Gujarat Industries Power Co., Adani Green Energy, JSW Energy, among others. The international customers include PureSky Development Inc and Sundog Solar LLC, among others.

As of Fiscal 2025, 77.50% and 88.72% of the company’s revenue from operations is derived from top five customers and top ten customers, respectively, and thus company’s revenue from operations is highly dependent upon a limited number of customers. Any adverse changes affecting customers or relationship with such customers could have an adverse effect on financial performance and result of operations of the company.

“The company stands well-positioned to capture India’s accelerating solar opportunity, supported by a robust order book, PLI-backed technology upgrades, and strong policy tailwinds. While risks remain around raw material sourcing, order execution, and price volatility, its improving return metrics and alignment with both domestic and export demand create a compelling medium-term growth story. Owing to such developments, we recommend to subscribe,” said Reliance Securities. 

Vikram Solar IPO comprises a fresh issue of 4.52 crore shares valued at ₹1,500 crore, along with an offer for sale comprising 1.75 crore shares totaling ₹579.37 crore from promoters Gyanesh Chaudhary, Vikram Capital Management, and Anil Chaudhary.

Tentatively, Vikram Solar IPO basis of allotment of shares will be finalised on Friday, August 22 and the company will initiate refunds on Monday, August 25 while the shares will be credited to the demat account of allottees on the same day following refund. Vikram Solar share price is likely to be listed on BSE and NSE on Tuesday, August 26.

Vikram Solar IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors. The employee portion has equity shares aggregating up to ₹100 million.

Vikram Solar raised ₹621 crore from anchor investors on Monday, just one day prior to the commencement of its initial public offering. Participating institutional investors 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, as reported in a circular on the BSE's website.

Additionally, UTI Mutual Fund, Franklin Templeton Mutual Fund, Kotak Mahindra Mutual Fund, Nippon India Mutual Fund, and Edelweiss Mutual Fund received allocations of shares during the anchor round.

According to the circular, the company allocated 1.87 crore equity shares to 43 funds at a price of ₹332 per share, resulting in a total fundraising of ₹621 crore.

Vikram Solar IPO GMP today is +54. This indicates Vikram Solar share price were trading at a premium of ₹54 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Vikram Solar share price was indicated at ₹386 apiece, which is 16.27% higher than the IPO price of ₹332.

According to the grey market activities observed over the last nine sessions, the IPO GMP is currently on the rise and is anticipated to yield a solid listing. The minimum GMP recorded is ₹0.00, while the maximum GMP stands at ₹69, as per expert analysis.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.

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