Vikram Solar IPO Gets Fully Subscribed On Day 1
Renewable energy firm aims to raise Rs 2,079 crore to fund expansion projects, bolster capacity, and strengthen its position in India’s solar market
The initial public offering (IPO) of Vikram Solar got fully subscribed on its first day of public subscription led by non-institutional and retail bidding.
The IPO aimed to raise Rs 2,079.37 crore with a fresh equity component of Rs 1,500 crore and the offer-of-sale component worth Rs 579.37 crore with the price band fixed at Rs 315 to 332 per equity share, with a face value of Rs 1 each.
The IPO opened on 19 August and scheduled to close on 21 August followed by allotment on 22 August. Subsequently the IPO will be listed on the National Stock Exchange and Bombay Stock Exchange on 26 August.
The grey market premium of Vikram Solar stood at Rs 48 at the time of filing this story which indicated the listing gain of nearly 15 per cent, as per investor gain.
On its first day of subscription, the IPO received a total subscription of 1.57 times led by non institutional buyers who subscribed the issue 4 times. Retail investors and employees subscribed the IPO 1.43 times and 1.06 times respectively.
JM Financial is the booking running lead manager for the IPO, whereas MUFG Intime is the registrar for the issue.
IPO Objectives
Net proceeds from the Rs 769.73 crore will be directed towards meeting a portion of the capital requirements for the Phase-I expansion project. Rs 595.21 crore has been earmarked to finance the capital expenditure of the company’s Phase-II expansion project.
A portion of the funds will also be allocated to general corporate requirements, giving the company additional financial flexibility to strengthen operations, manage working capital, and pursue strategic initiatives.
Through these investments, Vikram Solar aims to expand its manufacturing capacity, improve operational efficiency, and enhance its market presence in India’s fast-growing renewable energy sector.
Company Earnings
Vikram Solar posted financial growth in FY25, with revenue rising 37 per cent year-on-year to Rs 3,459.53 crore compared to Rs 2,523.96 crore in FY24. Profit after tax (PAT) surged 75 per cent to Rs 139.83 crore, up from Rs 79.72 crore in the previous year.
The company’s EBITDA grew to Rs 492.01 crore in FY25 from Rs 398.58 crore in FY24, nearly tripling from Rs 186.18 crore in FY23. Assets increased to Rs 2,832.15 crore, while net worth stood significantly higher at Rs 1,241.99 crore, compared to Rs 445.42 crore a year earlier.
