Vikram Solar IPO fully subscribed within hours: Should you bid?
What's the story
Vikram Solar, a leading manufacturer of solar photovoltaic modules, has witnessed its ₹2,079.37 crore initial public offering (IPO) fully subscribed within hours of opening on Tuesday. The issue was booked 1.1 times by 3:00pm indicating strong investor demand. The retail investors category was booked 1.08 times while the non-institutional investors quota was subscribed over 2.6 times at the time of writing this article.
Analyst views
Brokerages recommend 'Subscribe' to the issue
Analysts have mostly given a 'Subscribe' rating to Vikram Solar's IPO. They cite the company's strong order book, upcoming capacity expansion plans, and favorable government schemes as reasons for their recommendation. Despite appearing expensive compared to peers on valuations, most brokerages believe its long-term growth potential justifies investor participation. Reliance Securities noted that Vikram Solar is well-positioned to capture India's accelerating solar opportunity with a robust order book and technology upgrades backed by Production-Linked Incentive (PLI) schemes.
Growth strategy
Capacity expansion and government schemes to drive growth
SBI Securities highlighted that Vikram Solar operates at a lower margin profile than listed peers due to the lack of backward integration and limited export presence. However, the company plans to nearly quadruple its installed solar module manufacturing capacity to 15.5 GW by FY26. This growth will be driven by capacity expansion and robust domestic demand backed by government schemes such as PM Surya Ghar Muft Bijli Yojana and PM Kusum, among others.
Offer details
Issue details
Vikram Solar's IPO comprises a fresh issue of 4.52 crore shares worth ₹1,500 crore and an offer for sale component of 1.75 crore shares aggregating to ₹579.37 crore by its promoter Gyanesh Chaudhary, Vikram Capital Management and Anil Chaudhary. The Kolkata-based firm has set a fixed price band for its shares between ₹315 and ₹332 each. Investors can apply for a minimum of 45 shares per lot, with additional bids in multiples of 45.
Financial growth
Revenue growth and future plans
Vikram Solar has seen its revenue grow steadily from ₹2,073 crore in FY23 to ₹3,423 crore in FY25. This growth is attributed to higher realizations, capacity ramp-up and order execution. The company also plans to enter solar cell production with two manufacturing units of 12 GW each in Tamil Nadu by FY27. It will also set up a greenfield battery energy storage system (BESS) project with an initial capacity of 1GWh expandable up to 5GWh by FY27.