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Vikram Solar IPO Day 3 Live: Solar module maker Vikram Solar IPO subscription status was 4.56 times on Wednesday, the second day of bidding. The non-institutional investors portion received 13.01 times subscription, while the quota for Retail Individual Investors(RIIs) got subscribed 3.47 times. Qualified Institutional Buyers (QIBs) part received 11 per cent subscription.

With the Vikram Solar IPO price band set between ₹315 and ₹332 per share, the ₹2,079-crore IPO is scheduled to conclude on August 21.

The Vikram Solar IPO consists of fresh equity issues totaling up to ₹1,500 crore alongside an offer for sale (OFS) of over 1.74 crore shares, which, at the highest end of the price range, are estimated to be worth around ₹579.37 crore from its promoters.

Of the new equity being issued, the company plans to allocate the funds for capital expenditures aimed at investing in its wholly owned subsidiary, VSL Green Power Private Ltd, for both Phase I and Phase II of their initiative.

JM Financial, Nuvama Wealth Management, UBS Securities, Equirus Capital, and PhillipCapital are the lead managers for this offering.

(Stay tuned for more updates)

“Vikram Solar initial issue is available at 24.8x TTM EV/ EBITDA, compared to peer average of 26.3x TTM EV/EBITDA. We believe the its initial issue to be fairly valued, and assign a “NEUTRAL” rating, led by its inferior margin and return profile compared to the peers on back of lack on backward integrations,” said DRChoksey Finserv Private.

Key domestic customers of the company includes prominent government entities, such as National Thermal Power Corporation, Neyveli Lignite Corporation Limited and Gujarat Industries Power Company Limited, and large private independent power producers (“IPPs”), such as ACME Cleantech Solutions Pvt. Ltd., Adani Green Energy Limited, AMPIN Energy Transition Private Limited, Azure Power India Private Limited, JSW Energy Limited, First Energy 7 Private Limited and Rays Power Infra Private Limited, among others.

Vikram Solar IPO subscription status was 6.86 times on day 3. The retail portion was subscribed 4.35 times, and NII portion has been booked 21.60 times, Qualified Institutional Buyers (QIBs) portion received 16% bids. The employee portion booked was 2.88 times.

The company has received bids for 31,13,41,815 shares against 4,53,61,650 shares on offer, at 10:54 IST, according to data on BSE.

“Its portfolio spans high-efficiency PV modules, EPC, and O&M services, serving top clients like NTPC and Adani. Risks include high capex, client concentration, and global supply chain exposure. Yet, strong order book (10.3 GW), backward integration, and government support position it well for long-term growth. We recommend a ‘SUBSCRIBE’ rating for investors seeking exposure to India’s clean energy value chain,” said Lakshmishree Investment & Securities.

Significant raw material procurement through imports, change in technology, legal proceedings against some promoters, increasing competition, exposure to US market and Policy and regulatory uncertainty.

“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 Securities.

“Vikram Solar is well-positioned to capture this opportunity through strategic expansion of solar PV module manufacturing and backward integration into solar cell manufacturing. Further, the company is strengthening its domestic presence through a dedicated retail network and distribution model. Investors may consider the IPO for long-term investment,"said Master Capital Services. 

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.

For the fiscal year ending March 31, 2025, the company posted a net profit of ₹139.83 crore and generated revenue of ₹3,459.53 crore. During the financial year 2024-25, its net profit was ₹79.72 crore, with revenue totaling ₹2,523.96 crore.

As per the red herring prospectus (RHP), the company's peers are Waaree Energies Ltd (with a P/E of 45.79), Premier Energies Ltd (with a P/E of 47.01), and Websol Energy System Ltd (with a P/E of 40.04).

“There remains significant untapped potential for renewable installations in India, with solar energy offering the highest potential. Solar energy has an estimated capacity of 750 GW, but as of now only 116.25 GW has been installed, leaving about 84.5% untapped potential. Vikram Solar is well-positioned to capture this opportunity through strategic expansion of solar PV module manufacturing and backward integration into solar cell manufacturing. Further, the company is strengthening its domestic presence through a dedicated retail network and distribution model. Investors may consider the IPO for long-term investment,” said Master Capital Services.

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 IPO GMP today is +42. This indicates Vikram Solar share price were trading at a premium of ₹42 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 ₹374 apiece, which is 12.65% higher than the IPO price of ₹332.

According to the grey market trends from the past 11 sessions, the current IPO GMP is rising and is anticipated to result in a robust listing. The minimum GMP recorded is ₹0.00, while the maximum GMP reaches ₹69, as noted by experts.

'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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