Vikram Solar IPO opens for subscription; GMP at 16%. Should you apply?
ADVERTISEMENT The price band has been fixed at Rs 315–332 per share, with a lot size of 45 shares. At the upper end of the price band, the company is expected to raise about Rs 2,079 crore.
Post issue, Vikram Solar's market capitalisation will be in the range of Rs 11,471–12,009 crore. The company's shares are proposed to be listed on both BSE and NSE.
Of the net issue, 50% has been reserved for Qualified Institutional Buyers (QIBs), 35% for retail investors, and 15% for Non-Institutional Investors (NIIs).Vikram Solar is one of India's largest solar PV module manufacturers with 4.5 GW of installed capacity. It has shipped over 7 GW globally across 39 countries and counts NTPC, Adani Green, JSW Energy, Azure Power and ACME among its marquee clients.The company is expanding aggressively with plans to scale capacity to 15.5 GW by FY26 and 20.5 GW by FY27. It is also diversifying into solar cell manufacturing and battery energy storage systems (BESS).
ADVERTISEMENT In FY25, Vikram Solar reported revenue from operations of Rs 3,423 crore, EBITDA of Rs 492 crore, and adjusted PAT of Rs 140 crore. Revenue has grown at a 29% CAGR over FY23–25, while EBITDA and PAT have expanded at 63% and 211% CAGRs, respectively. Unlock 500+ Stock Recos on App
SBI Securities has recommended investors to subscribe to the issue. The brokerage notes that while Vikram Solar's margins are currently lower than peers due to limited exports and lack of backward integration, expansion into solar cell manufacturing from FY27 is expected to lift profitability.
ADVERTISEMENT At the upper price band of Rs 332, the stock is valued at 85.9x FY25 earnings and 21.4x EV/EBITDA, which is in line with listed peers on an EV/EBITDA basis.The brokerage highlights robust domestic demand from government schemes such as PM Surya Ghar Muft Bijli Yojana, PM Kusum, as well as utility-scale and C&I solar capacity additions, as key growth drivers.
ADVERTISEMENT
JM Financial, Nuvama Wealth Management, UBS Securities India, Equirus Capital and PhillipCapital India are the book-running lead managers, while MUFG Intime India is the registrar to the issue.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
(You can now subscribe to our ETMarkets WhatsApp channel)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
India Today
36 minutes ago
- India Today
Pakistan extends airspace ban on Indian flights for another month
Pakistan on Wednesday extended its airspace ban on Indian aircraft until September 23. The Pakistan Airports Authority (PAA) issued a fresh NOTAM (Notice to Airmen) announcing the one-month extension, covering both civilian and military aircraft that are Indian-owned, operated, or leased."All aircraft operated by Indian airlines will not be allowed to use Pakistani airspace. The ban also remains in place for military and civilian aircraft that are Indian-owned or leased," the authority airspace closure was first imposed on April 23 for one month following the Pahalgam terror attack in Jammu and Kashmir, which killed 26 people. The initial ban barred Indian carriers from flying over Pakistan. India responded on April 30 with a reciprocal airspace closure for Pakistani aircraft, starting a series of tit-for-tat restrictions. The ban was first extended on May 23. In July, Pakistan further extended the closure until August 24, affecting hundreds of flights LOSES RS 1,240 CRORE IN AIRSPACE BANThe prolonged closure has hit Pakistan's aviation sector hard. According to Dawn, citing the Defence Ministry, the Pakistan Airports Authority lost over Rs 1,240 crore (PKR 4.1 billion) in just two months. The loss stemmed from transit charges as 100-150 Indian aircraft fly daily, cutting Pakistan's overflight traffic by almost 20 per Defence Minister Khawaja Mohammad Asif confirmed that the ban had caused significant revenue losses. "The closure has impacted our overflying charges and transit traffic severely," he restrictions have created major challenges for airlines, forcing longer routes that burn more fuel and stretch flight times. Carriers have also struggled with crew rotations and scheduling headaches, all of which are driving up operating costs.- EndsWith inputs from agenciesMust Watch
Time of India
38 minutes ago
- Time of India
Thiruvananthapuram South railway station upgrade gains momentum
Thiruvananthapuram: The redevelopment of Thiruvananthapuram South railway station (formerly Nemom) has entered a crucial phase, with nearly 60% of the sanctioned work complete. Tired of too many ads? go ad free now The project includes a modern coaching terminal and track doubling, both key to easing congestion at Thiruvananthapuram Central. According to railway sources, the modern station building's foundation is already 70% complete. "Platform shelters on the freshly constructed platforms 2 and 3 are now fully complete, while the shelters for platform 4 are about 75% finished. Construction is progressing steadily on the subway that will connect all platforms. At the coaching terminal, which will house facilities for parking and maintenance of trains, core earthworks and pit-line construction are nearly complete. Track doubling is set to be finished first, while the terminal itself is scheduled for commissioning by the end of 2026. The Union railway ministry has given the project high priority. Once complete, the station will function as a satellite hub, shifting a significant share of maintenance, stabling and operational load away from the overcrowded Central station. The upgraded plan now includes four platforms, two extra pit-lines, four stabling lines and a repair shed, offering facilities comparable to Central. During a Feb 2025 review visit, Union minister of state for railways V Somanna expanded the project's scope, reaffirming its importance in meeting the capital's long-term rail demands. The project, estimated to cost Rs 117 crore, is being built on railway-owned land, ensuring faster execution. Tired of too many ads? go ad free now Accessibility is also being addressed. A new approach road from the Karamana–Kaliyikkavila state highway has been cleared, with 1.84 acres sanctioned by the state govt. This is crucial since the current road is too narrow to handle expected traffic growth. The Union home ministry has also approved renaming Nemom station to Thiruvananthapuram South, aligning with efforts to streamline rail operations and station identities. Railway officials have stressed that the new terminal will be central to decongesting Thiruvananthapuram Central, enabling smoother train operations, better stabling capacity, and modernized maintenance facilities. Meanwhile, Southern Railway is carrying out upgrades across the region. At Thiruvananthapuram North (Kochuveli), work on the new station building, lifts, tactile paving and shelters is nearing completion. Redevelopment is also advancing at Neyyattinkara and Thiruvananthapuram Central, with timelines stretching through 2025 and 2026.
Time of India
43 minutes ago
- Time of India
UltraTech to sell up to 6.49% in India Cements through offer for sale
Mumbai: UltraTech Cement will sell up to 6.49% stake in India Cements through an offer for sale , the company informed the stock exchanges on Wednesday. India Cements is an independently listed subsidiary of UltraTech Cement, in which it held 81.49% stake at the end of the June quarter. UltraTech Cement will sell up to 20.1 million equity shares of the company, which will help it pare its stake to 75%, in line with the norms of the Securities and Exchange Board of India (Sebi). The sale will be conducted on August 21-22. The floor price for the offer will be ₹368, the company said. At this price, the stake sale is likely to bring in nearly ₹740 crore for UltraTech Cement. Agencies Chennai-based India Cements was acquired by UltraTech Cement in 2024. UltraTech Cement first bought out the promoters and their associates' stake in the company, followed by an open offer for shareholders, making India Cements its subsidiary at the end of December 2024. Live Events India Cements shares closed 0.92% down at ₹370 apiece on BSE on Wednesday, while those of UltraTech Cement ended flat at ₹12,860. UltraTech Cement is currently the largest producer of building material in the country, with an annual production capacity of 192.26 million tonnes for grey cement. The company is set to cross 200 million tonnes of production capacity in this financial year, ahead of its original schedule of 2026-27.
