Vikram Solar IPO subscribed 55 times, GMP signals strong listing
What's the story
Vikram Solar, a leading manufacturer of solar photovoltaic modules, has witnessed a massive response to its initial public offering (IPO). The mainboard issue was subscribed 54.63 times with bids for over 2.47 billion shares against the offered 453.61 million shares. The IPO opened for subscription from August 19 to August 21 and will be listed on BSE and NSE on Tuesday, August 26.
Allotment details
Vikram Solar's IPO received robust response from investors
The allotment of unlisted shares for Vikram Solar's IPO was completed on Friday, August 22. Investors who received their lots are now awaiting the company's listing on BSE and NSE. As they wait, they are closely monitoring the company's GMP (Grey Market Premium) to predict its potential market performance after listing.
Market forecast
Shares of Vikram Solar are expected to list at ₹373
Vikram Solar's shares are currently trading at ₹373 each, exceeding the upper limit of its price band set at ₹332 per share. This gives a GMP of ₹41, suggesting an expected listing premium of 12.35%. The company's IPO comprises a fresh issue of 45.2 million shares worth ₹1,500 crore and an OFS (offer for sale) of 17.5 million shares worth ₹579.37 crore.
Growth trajectory
Company's financial performance in FY25
For FY25, Vikram Solar reported a 37% year-on-year revenue growth to ₹3,459.53 crore. Its net profit also surged by 75% to ₹139.83 crore during the same period. The company plans to use the proceeds from its fresh issue for capital expenditure on Phase-I (₹769.73 crore) and Phase-II (₹595.21 crore) projects as well as general corporate purposes after the IPO is completed.