Solarworld Energy Solutions Limited is coming up with its Initial Public Offering (IPO) which has attracted significant attention from investors, especially in the renewable energy space. The Solarworld Energy Solutions IPO is a book-built issue worth ₹490 crore. In this detailed IPO review and analysis, we will look at the company profile, competitive strengths, financials, IPO issue details, peer comparison, reasons to invest, risk factors, GMP, and whether you should subscribe or avoid this issue. This article will also cover Solarworld Energy Solutions IPO date, IPO price, IPO size, issue details, and analysis to help investors make an informed decision.
About Solarworld Energy Solutions Ltd
Incorporated in 2013, Solarworld Energy Solutions Limited is engaged in providing end-to-end engineering, procurement, and construction (EPC) solutions for solar power projects. The company operates under two models:
- CAPEX Model – Customers own the solar projects while Solarworld handles complete execution from design to commissioning.
- RESCO Model – Customers can adopt solar energy without upfront investment, reducing carbon footprint and energy costs.
The company has entered into a partnership with ZNSHINE PV-Tech Co. Ltd. (a Bloomberg NEF tier-1 solar panel supplier) to set up a solar panel manufacturing unit. Major clients include SJVN Green Energy, Haldiram Snacks, and Ethnic Foods.
As of July 31, 2025, the company employed 277 people and has established itself as a reliable solar EPC service provider.
Competitive Strengths
- Strong track record in executing solar EPC projects with high-quality delivery.
- Asset-light business model resulting in robust financial performance.
- Established customer base and long-term relationships.
- Experienced management team with deep sector knowledge.
- Expanding into solar panel manufacturing through a strategic partnership.
Solarworld Energy Solutions IPO Issue Details
- IPO Date: September 23, 2025 – September 25, 2025
- Listing Date (Tentative): September 30, 2025
- IPO Price Band: ₹333 – ₹351 per share
- Face Value: ₹5 per share
- Lot Size: 42 shares
- Issue Size: ₹490 crore
- Fresh Issue: ₹440 crore
- Offer for Sale (OFS): ₹50 crore
- Lead Managers: Nuvama Wealth Management, SBI Capital Markets
- Registrar: MUFG Intime India Pvt. Ltd.
- Listing: BSE, NSE
Financial Performance
Restated Consolidated Financials (₹ in crore)
| Particulars | FY23 | FY24 | FY25 |
|---|---|---|---|
| Total Assets | 120.43 | 155.02 | 598.02 |
| Total Income | 235.05 | 505.50 | 551.09 |
| EBITDA | 22.88 | 71.09 | 106.75 |
| Profit After Tax | 14.84 | 51.69 | 77.05 |
| Net Worth | 21.91 | 73.60 | 309.07 |
| Borrowings | 64.67 | 61.10 | 114.55 |
- Revenue grew at a CAGR of over 55% in 3 years.
- PAT margin improved from 6% in FY23 to 14% in FY25.
- Debt-to-equity remains comfortable at 0.37.
Objects of the IPO
The net proceeds from the IPO will be used for:
- Investment in subsidiary KSPL for part-financing the Pandhurana Project (₹575.3 crore).
- General corporate purposes.
Valuation – P/E Ratio vs Peers
- EPS (Post IPO): ₹8.89
- P/E (Post IPO at upper band): 39.48x
Peer Comparison:
- Sterling & Wilson Renewable Energy – P/E: 25x
- KPI Green Energy – P/E: 41x
- Industry Average – ~33x
At 39.5x, Solarworld IPO is higher than the industry average, closer to KPI Green Energy, which trades at premium valuations.
Grey Market Premium (GMP)
As per market observers, Solarworld Energy Solutions IPO GMP is trading in the range of ₹50–₹60 per share ahead of the opening date. This indicates moderate listing gains expectation.
Reasons to Invest in Solarworld Energy Solutions IPO
- Strong growth in India’s renewable energy sector with government push towards solar.
- Consistent revenue and profitability growth over the last three years.
- High return ratios – ROE of 40% and ROCE of 54% in FY25.
- Expansion into panel manufacturing to strengthen backward integration.
- Promoter holding of 78.7% pre-IPO, indicating strong promoter confidence.
Risk Factors
- Valuations are slightly stretched compared to peers.
- Dependency on large clients; top 5 clients contribute significant revenue.
- Any delay in the Pandhurana Project could impact near-term financials.
- High competition from established players in solar EPC and panel manufacturing.
- Forex risk due to import dependency for certain raw materials.
- Refer Solar World Energy IPO RHP for complete risk factors.
How to Apply for Solarworld Energy Solutions IPO?
Investors can apply through ASBA (Application Supported by Blocked Amount) using their bank’s net banking or UPI-enabled apps. The IPO will be available for subscription via all leading brokers such as Zerodha, Upstox, ICICI Direct, HDFC Securities, etc.
Conclusion – Invest or Avoid?
Solarworld Energy Solutions IPO comes from a high-growth industry with strong financials, good return ratios, and expansion plans into manufacturing. However, the valuation is slightly on the higher side, and investors should be cautious about project execution risks.
My Personal View: Suitable for high risk investors with a medium to long-term horizon. Risk-averse investors may wait for better entry points post-listing.
FAQs on Solarworld Energy Solutions IPO
1. What are the Solarworld Energy Solutions IPO dates?
The IPO opens on September 23, 2025, and closes on September 25, 2025.
2. What is the IPO price band?
The price band is ₹333 – ₹351 per share.
3. What is the GMP of Solarworld IPO?
The Grey Market Premium (GMP) is around ₹50–₹60 per share.
4. How much should retail investors invest?
The minimum lot size is 42 shares, requiring about ₹14,742 at the upper price band.
5. Who are the lead managers of the issue?
Nuvama Wealth Management and SBI Capital Markets are the BRLMs.
6. What is the post-issue P/E ratio?
The post-issue P/E is around 39.5x, which is higher than the industry average.
7. Should I subscribe or avoid?
Investors with a medium to long-term outlook may consider subscribing, while short-term investors should weigh the high valuation risk.
Disclaimer: This article is for informational purposes only and not a recommendation to buy, sell, or subscribe. Investors should carefully read the Red Herring Prospectus (RHP) and consult financial advisors before investing in IPOs.
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