Vikram Solar IPO: Expect 11% Premium on Stock Market Debut, Understand Post-Listing Strategy
Investors in the stock market are quite excited as Vikram Solar IPO is going to see its first day on 26 August. As per the fresh trends of the grey market, the company’s shares are expected to be listed at almost 11% premium. This signal is clear that investors are quite hopeful and there is a strong growth story behind the demand of the IPO.
Vikram Solar IPO Listing Date and Subscription
Vikram Solar IPO is open between 19 to 21 August and it created a storm and the total subscription reached 54.63 times. The price band of the IPO was decided at Rs 315-332 per share. Prior to listing, the company has raised Rs 621 crore from anchor investors, which further boosts investor confidence.
Grey market premium has been positive and hence market experts are saying that a healthy opening can be seen on the listing day.
Vikram Solar’s journey: from 2009 till now
Vikram Solar started with just 12 MW capacity in 2009 and today it has become a major solar energy solutions provider. Till now the company has 4.5 GW of installed solar PV module capacity. The company keeps not only modules but also EPC and O&M services in its portfolio.
Vikram Solar has strengthened its credibility base by working with big clients like NTPC and Adani.
Future Use of Vikram Solar IPO Funds
The company’s growth plans are also quite ambitious. A part of the money raised from the IPO will be used in capital expenditure, especially for projects of its subsidiary VSL Green Power. The company targets to take the solar PV module capacity to 15.5 GW by FY26 and expand it to 20.5 GW by FY27.
Not only this, Vikram Solar is now also entering solar cell manufacturing. A 12 GW facility is being set up in Tamil Nadu which will be ready by FY27. Along with this, a greenfield battery energy storage project is also being built, whose first phase will be 1 GWh and there is a plan to expand it to 5 GWh.
Experts View: Vikram Solar IPO Valuation
Market experts are giving mixed reactions regarding this IPO.
Narendra Solanki of Anand Rathi Shares says that the valuation seems a bit aggressive as the company is trading at 85.8 P/E on the basis of FY25 annualised earnings. Post-issue market cap will be approx Rs 12,009 crore. He says that the capex in the business is high, margins are relatively low and client concentration is also a risk. But the company’s strong order book of 10.3 GW and government policy support could provide comfort to long-term investors.
Ajcon Global’s Akhilesh Desai believes India’s solar power sector will boom in the next few years due to policy push and clean energy demand. He suggested that short-term investors can book profit on listing, while long-term investors can hold on and benefit from sectoral growth if they can take a little risk.
Swastika Investmart’s Shivani Nyati also highlighted that Vikram Solar is in a very strong position but dependency on top 10 clients and raw material price fluctuations could be a challenge. Successful execution of the Tamil Nadu facility will decide future growth.
Post-Listing Strategy: What should investors do?
If you had applied for Vikram Solar IPO, now the question is what to do after listing? For short-term investors, the safe option could be to book profit on listing day if the stock opens at a strong premium. But for those who take a long-term view and believe in India’s clean energy transition, holding may be a better strategy.
Solar energy sector in India is still at an early stage and the coming few years can become a golden period for this industry. Government support and rising demand for clean energy will give further push to players like Vikram Solar. But every investment carries risk, so it is always important to diversify.
Disclaimer:
This article is for informational purposes only. It is not a financial advice of any kind. Stock market investments always come with risk. It is important to seek advice from a certified financial advisor before taking an investment decision.
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Vikram Solar IPO: Raises ₹621 Crore from Anchor Investors, Price Band ₹315-332
