Saatvik Green Energy IPO: Could It Be Your Best Investment in a Solar Future?
India is now rapidly moving from traditional coal-based sources to renewable sources for its energy needs. Solar power has become the biggest pillar of this journey. Meanwhile, the Saatvik Green Energy IPO has opened and is generating considerable buzz. This could be a golden opportunity for investors to invest in India’s solar future.
Saatvik Green Energy IPO Opens – The Biggest Highlight
The Saatvik Green Energy IPO is now open and aims to raise ₹900 crore. The company has already mobilized ₹269 crore from anchor investors, which shows the confidence of investors. The IPO price has been fixed at ₹442–₹465 per share and the lot size is 32 shares. This means a retail investor will have to invest a minimum of ₹14,880. The subscription for the IPO will remain open till September 23 and the listing will take place on BSE and NSE on September 26.
The Grey Market Premium (GMP) is also being discussed a lot. Currently, the unlisted shares are trading at ₹530, which is 14% higher than the issue price. This clearly indicates mild listing gains, but GMP always depends on sentiments and can change quickly.
Saatvik Green Energy IPO Review – What Do Brokerages Say?
Market experts are quite optimistic. SBI Securities has given the IPO a ‘Subscribe’ rating, saying that Saatvik’s growth trajectory is very strong. Between FY23 and FY25, the company’s revenue grew at a CAGR of 88%, EBITDA by 365%, and PAT by 572%. These numbers speak for themselves. Saatvik is building an integrated solar cell and module facility in Odisha with a production capacity target of 4.8 GW and 4 GW, respectively.
Arihant Capital also has a ‘Subscribe for long term’ rating. According to them, Saatvik has a diversified client base that includes major names like JSW Neo Energy, Shree Cement, and SJVN Green Energy. The company’s strong order book and global presence are positive factors for its long-term growth.
Saatvik Green Energy IPO and Company Story
Saatvik Green Energy was launched in 2017 and has today become a strong solar photovoltaic module manufacturer with 3.8 GW of operational capacity. The company manufactures MonoPERC, N-TopCon, and polycrystalline modules. Initially, MonoPERC was its main revenue source, but now N-TopCon modules have taken the lead. In FY25, N-TopCon’s revenue reached ₹1,224 crore, surpassing MonoPERC’s ₹835 crore.
Revenue growth has also been extraordinary. Revenue was ₹531 crore in FY23, which doubled to ₹1,097 crore in FY24 and ₹2,192 crore in FY25. Profits also doubled to ₹214 crore. This growth clearly shows that the company is moving in the right direction.
Saatvik Green Energy IPO and Odisha Project
A significant portion of the funds raised from the IPO will be invested in setting up a 4 GW solar PV module manufacturing facility in the Gopalpur Industrial Park in Odisha. With this project, Saatvik’s capacity will increase from 3,742 MW to 7,700 MW. The Odisha plant will also receive special economic zone benefits such as tariff subsidy and capital subsidy, which will make the expansion cost-effective.
Another benefit of this IPO is debt repayment. Saatvik will repay a significant portion of its borrowings, further improving its debt-to-equity ratio. The company has already reduced the ratio to 1.3x from 7.1x in FY23.
Risks Associated with the Saatvik Green Energy IPO
Every growth story has its challenges. The biggest risk for Saatvik is customer concentration. The top 10 clients contributed 58% of revenue in FY25. If even one of these customers leaves, it could have a major impact on sales. Another risk is dependence on imported raw materials. More than 40% of inputs come from China, which creates the risk of price volatility and supply chain disruptions.
Valuations are also an important factor. The upper price band of the IPO is ₹465 per share, which gives the company a valuation of ₹6,000 crore. This is still lower than rivals like Waaree and Premier Energies, but Saathvik’s growth pace is quite aggressive. The order book has also grown from ₹559 crore to ₹5,000 crore in a year, which shows the strength of demand.
Final Verdict – Should You Apply for the Saatvik Green Energy IPO?
Saatvik Green Energy has established a strong position in the solar industry in its short existence. Both revenue and profits are growing aggressively, and the Odisha project will double its capacity. Brokerages are also positive, and the grey market premium (GMP) suggests mild gains. Yes, there are risks, such as customer concentration and raw material dependency, but this could be a strong growth opportunity for long-term investors.
If you want to invest in the clean energy sector and are comfortable with taking some risk, the Saatvik Green Energy IPO could be a promising option. It’s a growth story aligned with India’s solar energy mission, and with strong execution, it could be quite rewarding for investors.
Disclaimer:
The views and recommendations above are those of individual analysts or brokerage companies, not US News Weeks. We advise investors to check with certified experts before making any investment decisions.
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