Vikram Solar IPO Opens Tomorrow: As investors enter into an IPO-studded week, all eyes will be on Vikram Solar’s initial public offering (IPO) set to open for subscription on Tuesday, August 19. The mainboard IPO comprises of a fresh issue of 4.52 crore shares which will amount to Rs 1,500 crore.
Vikaram Solar IPO grey market premium (GMP) indicated a listing gain of around 17.47%, according to Chittorgarh.com. As the Vikram Solar IPO is all set to open for subscription tomorrow, ie Tuesday, here are all the details about the IPO that investors must know.
Vikram Solar IPO Price Band
One of the largest solar photovoltaic module producers in India, Vikram Solar, has fixed its IPO price band at Rs 315-332 per equity share. The IPO is set to go on listing on the NSE and BSE. The Kolkata-based company has planned to raise around Rs 2,079.37 crore of funds with this IPO. Out of this, the company has planned to raise around Rs 1,500 crore through the issuance of fresh shares. Whereas, the remaining Rs 579.37 crore is kept for offer for sale (OFS) route.
Vikram Solar IPO Lot Size
Bidders for the IPO can apply in lots with one unit of the same consisting of 45 company shares. The 50% of the IPO fund is dedicated to qualified institutional buyers (QIB), 35% for retail buyers, 35% is kept for net institutional buyers (NIB).
The minimum amount of investment required by retail investors is Rs 14,175 to purchase a single lot of 45 shares. The lot size investment for sNII is 14 lots equivalent to Rs 2,09,160.
Vikram Solar IPO Key Dates
The IPO will open for subscription on Tuesday, August 18. The IPO will remain open for subscription till August 19. The IPO subscription is likely to be finalised on August 22. The tentative Vikram Solar IPO listing date is August 26, according to Chittorgarh.com.
Vikram Solar IPO GMP
Vikram Solar IPO’s grey market premium (GMP) is Rs 58, according to Chittorgarh data available till 11:58 am on August 18. As per the website, the estimated listing price is Rs 390, which includes a cap price and the current GMP. Vikram Solar IPO is expected to be listed with a gain or loss of 17.47%. The GMP has hinted a strong opening of the IPO.
Vikram IPO: Key Details About The Company
The company is India’s largest solar PV module manufacturer with 4.5 GW of installed capacity and more than seventeen years of industry experience. The company has planned to expand its solar PV module manufacturing capacity to 15.5GW by the financial year 2025-26 and 20.5 GW by FY27.
Vikram Solar is also planning to enter the solar cell production with two Tamil Nadu units. The company has also planned for the strategic expansion into energy storage to boost growth and profitability.
Vikram Solar IPO Registrar and Lead Managers
MUFG Intime India Private Limited has been appointed as Vikram Solar IPO’s official registrar. JM Financial, Nuvama Wealth Management, Phillip Capital India, UBS Securities India, and Equiras Capital are the lead managers of the IPO.
Vikram Solar IPO Review
Vikram Solar Limited’s installed solar module manufacturing capacity is likely to quadruple in FY26 to 15.5GW. The company’s growth is likely to be driven by capacity expansion, robust domestic demand led by multiple levers like PM Surya Ghar Muft Bijli Yojana, PM Kusum Yojana, etc.
According to SBI Securities, “At the upper price band of Rs 332, VSL is valued at 85.9x FY25 P/E and 21.4x EV/EBITDA on post issue capital. The valuation is in-line with peers on EV/EBITDA basis. Margin is expected to improve as the solar cell capacity comes onstream in FY27.”
Vikram Solar IPO: Should You Subscribe?
SBI Securities has recommended potential inventors to ‘Subscribe’ Vikram Solar IPO. “. We recommend investors to SUBSCRIBE to the issue at the cut-off price,” noted the brokerage in its report.
Vikram Solar IPO: What Are The Key Risks?
Revenue concentration, high dependencyu on a limited number of customers are among the two key risks for the company’s growth in future, according to SBI Securities. The company’s growth depends on setting up a new manufacturing facility in Tamil Nadu through a subsidiary, VSL Green Power Private Limited, in two phases. Additionally, fluctuations in raw materials and legal proceedings are other key risks to be watched out for the company growth.
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