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Vikram Solar IPO, Upcoming IPO, Should you subscribe Vikram Solar IPO?: Vikram Solar Ltd (VSL), one of India’s largest solar photovoltaic (PV) module manufacturers, is set to hit the primary markets with its Rs 2,079-crore initial public offering (IPO) opening on August 19, 2025, and it will conclude on August 21, 2025. It consists of a fresh issue of Rs 1,500 crore and an offer for sale (OFS) of Rs 579 crore.

VSL has fixed the price band between Rs 315 and Rs 332 per share, with investors able to bid in lots of 45 shares and multiples thereafter. At the upper end of the price band, Vikram Solar is eyeing a post-issue market capitalisation of Rs 12,009 crore.

The company plans to deploy the fresh issue proceeds primarily toward capacity expansion:

Over the last three years, Vikram Solar has shown steady revenue growth and improving profitability.

In FY23, the company reported revenues of Rs 2,073 crore, with EBITDA of Rs 186 crore and a modest profit of just Rs 14 crore. While EBITDA margin of 9 per cent and PAT margin of only 0.7 per cent.

In FY24, revenues rose to Rs 2,511 crore, a 21 per cent YoY. EBITDA more than doubled to Rs 399 crore, while profit after tax jumped to Rs 91 crore. 

This translated into a stronger EBITDA margin of 15.9 per cent and a PAT margin of 3.6 per cent.

In the current fiscal year (FY25), the momentum continued with revenues reaching Rs 3,423 crore, up 36 per cent YoY. EBITDA improved further to Rs 492 crore, while profit after tax climbed to Rs 140 crore.

Margins were stable, with EBITDA at 14.4 per cent and PAT at 4.1 per cent, though slightly lower than the FY24 EBITDA margin due to expansion-related costs.

Analysts at SBI Securities have recommended to subscribing to the issue at the cutoff price, citing that the company has a lower margin profile than its listed peers due to lack of backward integration and minimal export presence where the margins are usually

higher by 2 per cent to 2.5 per cent. According to the brokerage, the valuation is in line with peers on an EV/EBITDA basis.

Another brokerage, Anand Rathi, has recommended applying for the IPO with a long-term perspective, highlighting that the company’s portfolio includes high-efficiency PV modules, EPC, and O&M services, catering to top clients such as NTPC and Adani.

On the valuation front, based on annualised FY25 earnings, the company is seeking a P/E multiple of 85.8 times and a post-issue market capitalisation of approximately Rs 1,20,090 million, which makes the issue appear aggressively priced, the brokerage noted.

“We believe the business involves high capex, lower margins, client concentration, and exposure to global supply chains. However, its strong order book of 10.3 GW, backward integration, and government support position it well for long-term growth,” it added.

Vikram Solar is one of India’s largest solar PV module manufacturers, with 4.50 GW installed capacity. It has more than 17 years of industry experience and is expanding aggressively into:

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Sub-editor at Zee Business English

ankur.gupta@india.com

Gupta is a journalist with a multifaceted reporting background. At Zee Business Digital, he covers a wide range of topics, includ ...LATEST NEWSBy accepting cookies, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.