Vikram Solar Limited, one of India’s leading solar photovoltaic (PV) module manufacturers, is coming out with its Initial Public Offering (IPO). This IPO has generated considerable buzz in the renewable energy sector given the company’s strong market position, robust financial growth, and ambitious expansion plans. In this article, we provide a detailed Vikram Solar IPO review, covering the company profile, competitive strengths, issue details, financial performance, peer comparison, grey market premium (GMP), reasons to invest, risk factors, and our conclusion on whether investors should subscribe or avoid.
About Vikram Solar Limited
Founded in 2005, Vikram Solar is engaged in manufacturing high-efficiency solar PV modules and providing Engineering, Procurement, and Construction (EPC) services along with Operations & Maintenance (O&M) solutions.
Key Operations:
- Solar PV Module Manufacturing: PERC, TOPCon, and HJT technologies in both bifacial and monofacial formats.
- EPC Services: Complete execution from design to commissioning.
- O&M Services: Ensuring long-term performance and efficiency of solar projects.
The company operates manufacturing facilities in Falta SEZ, West Bengal and Oragadam, Tamil Nadu, with a pan-India distribution network spanning 23 states and 3 union territories.
Key clients include NTPC, Neyveli Lignite Corporation, Gujarat Industries Power, and leading private IPPs like ACME Cleantech.
Competitive Strengths
- Market Leadership: Among the largest solar PV module manufacturers in India by operational capacity.
- Diverse Product Portfolio: Wide range of high-efficiency modules catering to domestic and global markets.
- Strong Customer Base: Long-term relationships with marquee government and private clients.
- Financial Growth: 37% revenue growth and 75% PAT growth in FY25.
- Low Debt: Debt-to-equity ratio of just 0.19, indicating financial stability.
- Expansion Projects: Upcoming integrated solar cell and module manufacturing facility (Phase-I and Phase-II) to boost capacity.
Vikram Solar IPO Issue Details
- IPO Date: August 19, 2025 – August 21, 2025
- Listing Date: August 26, 2025 (tentative)
- Price Band: ₹315 – ₹332 per share
- Lot Size: 45 shares
- IPO Size: ₹2,079.37 crore
- Fresh Issue: ₹1,500 crore
- Offer for Sale (OFS): ₹579.37 crore
- Face Value: ₹10 per share
- Lead Managers: JM Financial, Nuvama Wealth, UBS Securities, Equirus Capital, PhillipCapital
- Registrar: MUFG Intime India Pvt. Ltd.
- Market Cap at Upper Price Band: ₹12,009 crore
Financial Highlights
| (₹ in Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 2,091.91 | 2,523.96 | 3,459.53 |
| EBITDA | 186.18 | 398.58 | 492.01 |
| PAT | 14.49 | 79.72 | 139.83 |
| ROE (%) | – | – | 16.57 |
| ROCE (%) | – | – | 24.49 |
| Debt/Equity | – | – | 0.19 |
| EBITDA Margin (%) | 8.9 | 15.78 | 14.37 |
The company has shown consistent revenue and profitability growth, with a substantial improvement in margins.
Objects of the IPO
- Partial funding of capital expenditure for Phase-I Project: ₹769.73 crore.
- Funding of capital expenditure for Phase-II Project: ₹595.21 crore.
- General corporate purposes.
P/E Ratio & Peer Comparison
At the upper price band of ₹332:
- Post-IPO EPS: ₹3.87
- P/E Ratio: ~85.88x
Peer Comparison (based on FY25 earnings):
| Company | P/E Ratio |
|---|---|
| Adani Green | 112.5x (Highest) |
| Websol Energy | 42.3x (Lowest) |
| Industry Average | ~78x |
| Vikram Solar | 85.88x |
Valuation is above the industry average, indicating premium pricing.
Grey Market Premium (GMP)
As of the latest update, Vikram Solar IPO GMP is ₹40-45, indicating a listing gain expectation of around 12-14% over the upper price band. GMP trends can change significantly closer to listing.
Reasons to Invest in Vikram Solar IPO
- Leadership in Renewable Energy: Positioned strongly in a fast-growing solar sector supported by government initiatives.
- Robust Financial Growth: Significant revenue and profit growth over the last three years.
- Capacity Expansion: Large-scale Phase-I & Phase-II projects will boost production capacity.
- Diversified Client Portfolio: Strong relationships with government and private sector customers reduce concentration risk.
- Global Market Potential: Ability to cater to international solar demand.
Risk Factors
- High Valuation: P/E higher than industry average, leaving limited margin for error.
- Sector Competition: Intense domestic and international competition could pressure margins.
- Raw Material Dependency: Prices of polysilicon and other key inputs can impact profitability.
- Policy Risk: Changes in government incentives or trade tariffs may affect growth.
- Execution Risk: Large expansion projects require timely execution to avoid cost overruns.
How to Apply for Vikram Solar IPO
Investors can apply via:
- UPI through broker platforms (Zerodha, Groww, Angel One, etc.).
- Net banking ASBA facility through supported banks.
- Physical ASBA forms at designated bank branches.
Conclusion – Subscribe or Avoid?
Vikram Solar is a leader in the Indian solar manufacturing space with a proven track record, strong client base, and ambitious growth plans. However, the IPO comes at a premium valuation compared to peers, and sector risks remain.
Is this good or bad for investment ? – Our View: Investors with a high-risk appetite and long-term horizon can consider subscribing. Conservative investors may wait for better entry levels post-listing.
FAQs on Vikram Solar IPO
1. What is the IPO date for Vikram Solar?
The IPO opens on August 19, 2025, and closes on August 21, 2025.
2. What is the price band for the IPO?
The price band is ₹315 – ₹332 per share.
3. What is the lot size and minimum investment?
Lot size is 45 shares, requiring a minimum investment of ₹14,175.
4. What is the GMP for Vikram Solar IPO?
The latest GMP is around ₹40-45.
5. Should I invest in Vikram Solar IPO?
It is suitable for long-term investors with a higher risk tolerance due to premium valuation.
6. Where will the shares be listed?
On BSE and NSE.
7. Who are the lead managers for the IPO?
JM Financial, Nuvama Wealth, UBS Securities, Equirus Capital, PhillipCapital.
Disclaimer: This article is for educational purposes and not a recommendation to buy, sell, or subscribe. Investors should consult their financial advisor before making investment decisions.
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