Vikram Solar, a prominent solar photovoltaic (PV) module manufacturer, made its debut on the Indian stock exchanges, BSE and NSE, today, August 26, 2025. The IPO, which opened from August 19 to August 21, 2025, saw the allotment finalized on August 22, 2025.

Listing Performance and IPO Details

The shares of Vikram Solar listed at a 2% premium over the issue price. The IPO was priced at ₹332 per share. Market participants had anticipated a stronger debut, with grey market premium (GMP) estimates suggesting a listing price of around ₹369 to ₹373. Despite the lower-than-expected listing, the IPO witnessed strong investor demand, being oversubscribed by nearly 143 times. The qualified institutional buyers (QIBs) category was subscribed 142.79 times, the non-institutional investors (NIIs) category 50.9 times, and the retail investors category 7.65 times.

The ₹2,079.37 crore IPO comprised a fresh issue of 4.52 crore shares aggregating to ₹1,500 crore and an offer for sale of 1.75 crore shares aggregating to ₹579.37 crore. The IPO price band was fixed at ₹315 to ₹332 per equity share with a face value of ₹10. The lot size was 45 equity shares.

Company Overview

Vikram Solar is a leading Indian manufacturer of high-efficiency solar PV modules, offering EPC and O&M services for solar projects. As of the date of the red herring prospectus, the company had an installed manufacturing capacity of 4.50 gigawatts (GW), with plans to expand this to up to 20.50 GW by 2027. The company's products include PERC, TOPCon, and HJT modules in both bifacial and monofacial formats. Vikram Solar has plants in Kolkata and Chennai and operates across 23 states and 3 union territories via 41 distributors, 64 dealers, and 67 integrators.

Financial Performance and Valuation

Vikram Solar's financial performance has been improving, with revenue growing 28.5% annually between FY23 and FY25. Profits have also risen significantly, and debt has been reduced. However, the company's margins remain thin compared to industry leaders.

At the IPO price of ₹332, the company is valued at 4.4 times its book value and 86 times its FY25 earnings. A market capitalization of ₹12,000 crore leads to an EV/EBITDA multiple of 16x and a PE multiple of nearly 40x, even after factoring in 40% EBITDA growth and 100% PAT growth in FY26E.

Growth Factors and Concerns

Several factors support Vikram Solar's growth potential:

• Government Initiatives: The company is well-positioned to benefit from the government's push for renewable energy and domestic solar manufacturing.
• Capacity Expansion: The company's expansion plans will significantly boost its production capacity.
• Order Book: Vikram Solar has a strong order book, providing revenue visibility.

However, there are also concerns:

• Margin Pressure: Vikram Solar's margins are lower than its peers.
• Import Dependence: The company relies heavily on imports for raw materials.
• Customer Concentration: Vikram Solar is dependent on its top ten customers.

Analyst Recommendations

Given the listing price and company fundamentals, analysts have varying recommendations:

• Hold: Considering the modest premium and the company's growth prospects, holding onto allotted shares might be a reasonable strategy, especially for long-term investors.
• Sell: Those seeking quick profits from the IPO might consider selling, as the listing was below GMP expectations.
• Buy: Some analysts suggest that long-term investors could find this an attractive opportunity, citing the momentum in renewable energy and the company's expansion plans.

Ultimately, the decision to buy, sell, or hold depends on individual investment goals, risk tolerance, and belief in the company's long-term prospects. Investors should carefully consider the company's strengths and weaknesses, valuation, and growth potential before making any investment decisions.