1. At a Glance
Vikram Solar is asking Dalal Street for a solar blessing of₹2,079 crore. Out of this, ₹1,500 Cr is fresh issue (to build new factories), and ₹579 Cr is promoters cashing chips via OFS. Price band: ₹315–₹332 per share, market cap ~₹12,000 Cr. Financials show37% revenue growth and 75% PAT jump in FY25— which sounds like rocket fuel, until you notice theP/E at 75–86x. Yes, priced like Adani Green’s cousin at a designer boutique.
2. Introduction
If IPOs were Netflix dramas,Vikram Solar Ltd.would be the big-budget solar saga. Founded in 2005, headquartered in Kolkata (yes, a renewable energy giant from the land of fish curry), Vikram has grown into one of India’s largest solar PV module manufacturers.
The pitch is simple: India wants more renewable energy, the government is handing out PLI schemes, and the world hates China’s monopoly on solar modules. Vikram Solar is positioning itself as the local hero — makingPERC, TOPCon, and HJT modules(if you don’t know what those mean, don’t worry, even most fund managers don’t — they just nod seriously).
But here’s the catch: solar manufacturing is cutthroat. Margins are wafer-thin, global competition is brutal, and module prices crash faster than crypto during Fed rate hikes. Vikram Solar’sPAT margin is just 4%— meaning they make ₹4 profit on ₹100 revenue. Yet, the IPO asks you to payP/E ~85x. Basically, chai-shop margins at Starbucks valuation.
3. Business Model (WTF Do They Even Do?)
Core businesses:
- Solar PV Module Manufacturing– Bread and butter, making panels. Fancy jargon: PERC, TOPCon, HJT. These are just generations of solar tech, each claiming higher efficiency.
- EPC Services– Design and build solar projects. Because someone has to install the panels.
- O&M– After-sales babysitting. Panels don’t wash themselves.
Manufacturing units: Falta SEZ (Kolkata) and Oragadam (Chennai). Customers: NTPC, Neyveli Lignite, Gujarat Industries Power, and big private IPPs like ACME. Distribution: 41 distributors, 64 dealers, 67 system integrators across India.
Basically, they make panels, sell panels, and then maintain panels. Full stack solar hustle.
4. Financials Overview
| Metric | FY25 (Latest) | FY24 | FY23 | YoY % | 2Y CAGR % |
|---|---|---|---|---|---|
| Revenue | ₹3,459 Cr | ₹2,524 Cr | ₹2,092 Cr | +37% | +28% |
| EBITDA | ₹492 Cr | ₹399 Cr | ₹186 Cr | +23% | +62% |
| PAT | ₹140 Cr | ₹80 Cr | ₹14 Cr | +75% | +166% |
| EPS (₹) Pre | 4.42 | 2.52 | 0.46 | +75% | +166% |
| EPS (₹) Post | 3.87 | — | — | — | — |
👉Commentary: Revenue shining, PAT skyrocketing, net worth flipped from negative to positive in 2 years. But PAT margin is 4%. Which means: “We worked ₹100, kept ₹4, and want you to value us like we kept ₹40.”
5. Valuation (Fair Value Range Only)
- P/E Method:Post-issue EPS = ₹3.87.At ₹315–₹332 → P/E = 81.4x–85.9x.Peers trade at 25–40x. Way expensive.
- EV/EBITDA Method:EBITDA FY25 = ₹492 Cr.EV ≈ Market Cap ₹12,000 Cr + negligible debt ≈ ₹12,000 Cr.EV/EBITDA ≈ 24.4x. Peers ~12–15x.
- DCF (Assume 20% growth, 12% WACC, 3% terminal)→ ~₹220–₹260/share.
🎯Fair Value Range (Educational only): ₹220–₹260/share.IPO band ₹315–₹332 = solar panels sold at Gucci pricing.
6. What’s Cooking – News, Triggers, Drama
- Capacity Expansion: ₹1,365 Cr IPO proceeds earmarked for Phase I & II projects. Translation: more factories, more modules.
- PLI Scheme: Govt subsidies for local solar manufacturing. Big positive.
- Exports Story: Anti-China tariffs abroad create demand for Indian panels. But remember, tariffs change faster than Netflix recommendations.
- Promoter OFS: ~₹579 Cr worth of shares offloaded. Stake drops from 77.6% → 63%. Not a
