Vikram Solar IPO subscribed 1.52 times on Day 1; GMP at 18%. Should you apply? Check other key details

Vikram Solar’s initial public offering (IPO) worth Rs 2,079 crore opened for subscription on Tuesday, August 19, and saw 1.52 times subscription. According to market observers, the company’s shares are trading at a grey market premium (GMP) of around 18% above the issue price, reflecting strong investor interest ahead of the listing. The IPO will remain open until August 21.

The offering consists of a fresh issue of equity shares worth Rs 1,500 crore and an offer for sale (OFS) of shares totaling Rs 579 crore. The price band has been set at Rs 315– 332 per share, with a lot size of 45 shares.

Vikram Solar IPO GMP Today:

According to market observers, Vikram Solar’s shares are currently trading at a grey market premium (GMP) of approximately 18% above the upper end of the issue price, which is Rs 332 per share. This suggests robust investor interest ahead of the company's stock market debut.

Note: The grey market premium (GMP) is an unofficial indicator of how a company’s shares might perform upon listing. It reflects investor sentiment and demand in the unregulated market before the shares are officially traded on the stock exchange.

Vikram Solar IPO subscription Status:

On the first day, the Vikram Solar IPO has been subscribed 1.52 times. Retail Individual Investors (RIIs), which include individual buyers, have subscribed to 1.26x of their allocated shares. Non-Institutional Investors (NIIs), typically high-net-worth individuals or smaller entities, have subscribed to 3.84x of their portion. They were offered 97.12 lakh shares.

Qualified Institutional Buyers (QIBs), which include large institutional investors like mutual funds and insurance companies, have placed just 2% bids for their allotted 1.26 crore shares.

Vikram Solar IPO: Price Band, Lot Size, and Key Listing Details

The price band for Vikram Solar’s IPO has been set at Rs 315 to Rs 332 per share, with a minimum lot size of 45 shares. At the upper end of the price range, the company aims to raise approximately Rs 2,079 crore through the offering.

Following the IPO, Vikram Solar’s estimated market capitalisation is expected to fall between Rs 11,471 crore and Rs 12,009 crore. The company’s shares are scheduled to be listed on both the BSE and NSE.

Of the net issue, 50% has been reserved for Qualified Institutional Buyers (QIBs), 35% for retail investors, and 15% for Non-Institutional Investors (NIIs).

At the upper end of the price range, the company aims to raise approximately Rs 2,079 crore. Following the IPO, Vikram Solar’s market capitalisation is estimated to fall between Rs 11,471 crore and Rs 12,009 crore. The shares are proposed to be listed on both the BSE and NSE.

Company Overview:

Vikram Solar is one of India’s leading solar photovoltaic (PV) module manufacturers, boasting an installed production capacity of 4.5 GW. The company has shipped over 7 GW of modules to more than 39 countries worldwide and serves prominent clients such as NTPC, Adani Green, JSW Energy, Azure Power, and ACME.

The company is pursuing aggressive growth, with plans to expand its manufacturing capacity to 15.5 GW by FY26 and further to 20.5 GW by FY27. It is also diversifying its portfolio by entering solar cell manufacturing and battery energy storage systems (BESS).

Financials:

In FY25, Vikram Solar reported revenue from operations of Rs 3,423 crore, EBITDA of Rs 492 crore, and an adjusted profit after tax (PAT) of Rs 140 crore. Over FY23–25, the company’s revenue grew at a compound annual growth rate (CAGR) of 29%, while EBITDA and PAT surged at CAGRs of 63% and 211%, respectively.

Should you subscribe?

SBI Securities has issued a ‘Subscribe’ rating for Vikram Solar’s IPO. The brokerage acknowledges that the company’s current profit margins are lower than those of its listed peers, primarily due to limited export exposure and the absence of backward integration. However, it expects profitability to improve with the planned foray into solar cell manufacturing starting FY27.

At the upper end of the price band of Rs 332, the stock is valued at 85.9 times its FY25 earnings and 21.4 times EV/EBITDA — a valuation broadly in line with listed peers on an EV/EBITDA basis.

The brokerage highlights robust domestic demand from government schemes such as PM Surya Ghar Muft Bijli Yojana, PM Kusum, as well as utility-scale and C&I solar capacity additions, as key growth drivers.

JM Financial, Nuvama Wealth Management, UBS Securities India, Equirus Capital and PhillipCapital India are the book-running lead managers, while MUFG Intime India is the registrar to the issue.

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