Saatvik Green Energy's ₹900 IPO now open: Should you bid?
What's the story
Saatvik Green Energy, a leading solar panel manufacturer, has launched its initial public offering (IPO) today. The IPO is priced in the range of ₹442-465 per share and will remain open till September 23. The issue comprises a fresh issue of shares worth ₹700 crore and an offer for sale (OFS) of ₹200 crore by promoters.
Fund allocation
Fresh issue proceeds to fund solar PV module manufacturing facility
The fresh issue proceeds of ₹477.23 crore will be used to set up a 4GW solar photovoltaic (PV) module manufacturing facility at Gopalpur Industrial Park in Odisha. Another ₹166.44 crore will be invested in the subsidiary for repayment/prepayment of its borrowings. The company also plans to use around ₹10.82 crore for repaying certain borrowings at the parent level and the remaining funds for general corporate purposes.
Investor support
Saatvik Green Energy raised ₹269 crore from anchor investors
Ahead of the IPO, Saatvik Green Energy raised over ₹269 crore from anchor investors by allotting 57.93 lakh shares at ₹465 apiece. The list of anchor investors includes HDFC Mutual Fund, Nippon India Mutual Fund, Bandhan Mutual Fund and SBI General Insurance Company. This strong backing from prominent institutional players underlines investor confidence in the company's growth prospects.
Company profile
Company has operational capacity of about 3.8 GW
As of March 31, 2025, Saatvik Green Energy has an operational capacity of about 3.8GW. The company has supplied over 2.5GW of high-efficiency modules in domestic and export markets. It is known for its integrated module manufacturing, EPC (Engineering Procurement Construction), and O&M (Operation & Maintenance) services. The company offers end-to-end engineering procurement construction services for solar projects including ground-mounted solar installations and rooftop solar installations.
Analyst outlook
'Subscribe' rating assigned to the IPO by analysts
At the upper end of its price band, Saatvik Green Energy is valued at a P/E of 27.6x (FY25 EPS of ₹16.8), which is lower than its peers. Analysts at Choice International have given a "Subscribe" rating to the IPO, citing its diversified portfolio, growing order book, proven execution track record and alignment with India's renewable energy priorities as factors that offer significant long-term growth potential.