IPO closes on 21 Aug'25
Vikram Solar Ltd
Minimum Investment
₹ 14,940 / 45 shares
Grey market premium
₹ 47 (14% premium)
Our Verdict:
Subscribe
- Vikram Solar Ltd (VSL) has delivered strong financial growth, driven by its expanded manufacturing footprint. From FY23 to FY25, solar module production volumes tripled to 1.28 GW, supported by rising domestic demand and favourable government policies.
- VSL is executing major expansion projects to scale its solar PV module manufacturing capacity to 15.5 GW by FY26 and 20.5 GW by FY27. This is backed by a robust order book of 10.3 GW, with 6.4 GW already under execution.
- VSL is also diversifying within the solar value chain by setting up a battery energy storage system (BESS) project in Tamil Nadu. The greenfield project will begin with 1 GWh capacity in its first phase, scalable up to 5 GWh.
- On the valuation front, the IPO appears aggressively priced at a P/E of 72x based on FY25 earnings.
- Despite stretched valuations, the IPO offers exposure to India’s solar manufacturing boom, supported by scale, integration, strong order visibility and policy tailwinds. With its ambitious growth trajectory and diversification plans, investors may consider subscribing to the IPO with a medium-to-long term horizon.
About the company
Founded in
2 Dec'05
Managing director
Gyanesh Chaudhary
- VSL is among India’s largest solar PV module manufacturers with 4.5 GW of installed capacity, targeted to expand to 15.5 GW by FY26 and 20.5 GW by FY27. Its product range spans high-efficiency PERC, N-Type and HJT modules, catering to both domestic and global markets.
- As of March 31, 2025, VSL has supplied modules to 39 countries, shipping 7.12 GW since inception, including 3.37 GW over the last three fiscals. In FY25 alone, it shipped 1,900 MW, with the United States contributing 588 MW as a key growth market.
STRENGTHS
- Robust Financial Growth: From FY23 to FY25, VSL delivered strong performance with a CAGR of 29% in operating revenue, 63% in EBITDA and 211% in net profit.
- Healthy Return Metrics: Operational efficiency is reflected in FY25 ratios, with RoE at 16.57% and RoCE at 24.49%.
- Expanding Order Book: As of March 31, 2025, the order book rose sharply to 10,340.82 MW, compared to 4,376.16 MW a year earlier.
- Widening Market Presence: VSL has built a strong domestic footprint, now spanning 19 states and 2 union territories. Its distributor network expanded rapidly—from 41 in September 2024 to 83 distributors and 64 dealers, and now over 250 dealers across India.
RISK FACTORS
- Client Concentration: In FY25, 77.5% and 88.72% of operating revenue came from the top 5 and top 10 customers, respectively. Any adverse developments affecting these key clients or relationships could materially impact financial performance.
- Legal Risks: VSL, its promoters and certain directors are facing legal proceedings involving claims of approximately Rs 781 crore. Unfavourable rulings could damage the company’s reputation and business outlook.
- Raw Material Dependency: As of FY25, 80.68% of imported raw materials were sourced from China, East Asia and Southeast Asia. Any supply restrictions or disruptions from these regions could negatively affect operations, profitability and cash flows.
- Contingent Liabilities: As of March 31, 2025, contingent liabilities stood at ~Rs 258 crore. If these materialise, they could adversely impact the firm’s financial position.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 2,079.37 crore
Fresh Issue
₹ 1,500 crore
OFS
₹ 579.37 crore
Price range
₹ 315 - 332
Lot size
45 shares
Issue Objective
The net proceeds from the fresh issue are proposed to be utilized towards:
- Partly funding the capital expenditure for establishing an integrated 3 GW solar cell and 3 GW solar module manufacturing facility;
- Funding the expansion of the solar module manufacturing capacity under the Phase-I Project from 3 GW to 6 GW; and
- General corporate purposes.
Dates
Bidding open
19 Aug'25
Bidding close
21 Aug'25
Allotment date
22 Aug'25
Refund date
25 Aug'25
Listing
26 Aug'25
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
This document has been issued by Liquide Solutions Private Limited for information purposes only. It does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. Investors should seek personal and independent advice regarding the appropriateness of investing in any of the funds, securities, other investment or investment strategies that may have been discussed or referred herein and should understand that the views regarding future prospects may or may not be realized. In no event shall Liquide Life Private Limited and / or its affiliates or any of their directors, trustees, officers and employees be liable for any direct, indirect, special, incidental or consequential damages arising out of the use of information / opinion herein.