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Photovoltaic module manufacturer Vikram Solar's ₹2,079.37 crore initial public offering (IPO) will open for subscription on Tuesday, August 19, and close on Thursday, August 21.
Vikram Solar IPO: Brokerage ratings
Analysts have mostly assigned a 'Subscribe' rating to the IPO, citing the company's strong order book, upcoming capacity expansion, favourable government schemes, and policy tailwinds that support growth in the solar sector.
While valuations appear expensive compared to peers, most brokerages believe its long-term growth potential justifies investor participation.
Reliance Securities: Subscribe
The brokerage wrote in its note that Vikram Solar stands well-positioned to capture India's accelerating solar opportunity, supported by a robust order book, PLI-backed technology upgrades, and strong policy tailwinds.
While risks remain around raw material sourcing, order execution, and price volatility, its improving return metrics and alignment with both domestic and export demand create a compelling medium-term growth story. Hence, the brokerage recommended a 'Subscribe' rating.
SBI Securities: Subscribe
SBI Securities said that Vikram Solar currently operates at a lower margin profile than listed peers due to lack of backward integration and limited export presence, where margins are typically higher by 2-2.5%.
The company plans to expand its installed solar module manufacturing capacity nearly fourfold to 15.5 GW by FY26. Growth is expected to be driven by capacity expansion and robust domestic demand, supported by schemes such as PM Surya Ghar Muft Bijli Yojana, PM Kusum, ALMM, the shift to captive solar plants in the commercial and industrial segment, and utility-scale capacity additions.
At the upper price band, the company is valued at 85.9x FY25 P/E and 21.4x EV/EBITDA on a post-issue basis, which is in line with peers on an EV/EBITDA basis.
The brokerage expects margins to improve once solar cell capacity becomes operational in FY27 and has advised investors to 'Subscribe' at the cutoff price.
Swastika Investmart: Subscribe for listing gains and long term
Swastika Investmart recommended investors to participate both for listing gains and long-term prospects, though it said the IPO appears "exorbitantly priced" based on recent financials.
The brokerage flagged the sharp jump in bottom-line growth from FY24 onwards as a point of concern but acknowledged consistent growth in both revenue and profit.
Arihant Capital: Subscribe for long term
Arihant Capital assigned a 'Subscribe for long term' rating, citing that the company's valuations are above industry peers.
It cited operational strengths such as robust R&D, strong quality control, adoption of advanced manufacturing technologies, and a clear backward integration strategy. However, execution risks related to large-scale expansion and competitive industry dynamics remain key factors to watch.
Vikram Solar IPO: Anchor book
Ahead of the issue opening, Vikram Solar has garnered Rs 620.8 crore from anchor investors. The company allocated 1.87 crore equity shares at Rs 332 per share on Monday, August 18, to anchor investors.
Some of the marquee Institutions that participated in the anchor includes Kotak Mutual Fund, Nippon MF, Goldman Sachs, Franklin Templeton MF, Singularity Equity Fund I, Morgan Stanley, Tata MF, ICICI Prudential Life, SBI General Insurance, BNP Paribas, HSBC, Citigroup, among others.
Vikram Solar IPO: Price band
The Kolkata-based company will sell its shares in a fixed price band between ₹315 and ₹332 per share.
Investors can bid for a minimum lot size of 45 shares and in multiples of 45 thereafter. Investors will have to make a minimum investment of ₹14,940 to avail one lot of shares.
Vikram Solar will be offering shares of a face value of ₹10 each as part of its IPO.
The public offer includes a fresh issue of 4.52 crore shares worth ₹1,500 crore and an offer for sale component of 1.75 crore shares aggregating to ₹579.37 crore by its promoter Gyanesh Chaudhary, Vikram Capital Management and Anil Chaudhary.
Vikram Solar IPO: Structure
The offer is being made through the book-building process, wherein not more than 50% of the IPO will be available for allocation to qualified institutional buyers, 15% for allocation to non-institutional bidders, and the remaining 35% for retail individual bidders.
Vikram Solar IPO: Objective
Proceeds from the fresh issue will be used towards partial funding of capital expenditure for the Phase-I and phase-II project. However, proceeds from the selling shareholders will go to them only.
Currently, promoters own 77.64% stake in the company, and the remaining 22.36% shares are held by public including Plutus Wealth Management's Arpit Khandelwal.
Company overview
Vikram Solar is a solar photovoltaic module manufacturer with over 17 years of experience. To meet rising demand, Vikram Solar is expanding its solar PV module manufacturing capacity to 15.50 GW by FY26 and 20.50 GW by FY27 through greenfield and brownfield projects. The company is also entering solar cell production with two units totaling 12 GW in Tamil Nadu by FY27.
Additionally, it plans to launch a greenfield battery energy storage system (BESS) project with an initial 1.00 GWh capacity, expandable to 5.00 GWh by FY27, marking a strategic move into energy storage to boost growth and profitability.
As of March 31, 2025, it had an executable order book of 10.34 GW, providing visibility for capability utilisation and revenue growth.
On the financial front, revenue rose steadily from ₹2,073 crore in FY23 to ₹3,423 crore in FY25, driven by higher realisations, capacity ramp-up and order execution.
Book running lead managers
JM Financial, Nuvama Wealth Management, Equirus Capital, UBS Securities India and Phillip Capital India are the book running lead manager of the IPO, while MUFG Intime India is the registrar.
The allotment for the Vikram Solar IPO is expected to be finalised on August 22, while the shares will be listing on BSE, NSE with a tentative listing date fixed as August 26.
