Vikram Solar listing tomorrow, GMP hints at double-digit premium. Here's what to expect

Vikram Solar’s market debut on Tuesday, August 26, is set to draw close investor scrutiny, with grey market signals pointing to a listing premium of over 12% above the issue price. As of Monday, the grey market premium stood at Rs 41, implying a likely listing around Rs 373, against the IPO’s upper band of Rs 332.

Heavy demand, allotment finalized

The IPO, which ran from August 19 to 21, saw overwhelming demand, with bids totaling 56.42 times the issue size. Qualified Institutional Buyers (QIBs) led the charge with 145.10 times subscription, followed by Non-Institutional Investors at 52.87 times and retail investors at 7.98 times.

The offer included a fresh issue worth Rs 1,500 crore and an offer for sale of Rs 579.37 crore. Shares were priced in the Rs 315–332 range with a lot size of 45 shares. At the upper limit, the issue was expected to raise Rs 2,079 crore, giving the company an estimated market capitalization between Rs 11,471 crore and Rs 12,009 crore. Vikram Solar shares will be listed on both the BSE and NSE.

Company profile

Vikram Solar is among India’s leading manufacturers of solar photovoltaic modules, with an installed capacity of 4.5 GW. It has shipped over 7 GW of modules to more than 39 countries, with clients including NTPC, Adani Green, JSW Energy, Azure Power, and ACME.

The company plans to ramp up capacity to 15.5 GW by FY26 and 20.5 GW by FY27, while expanding into solar cell manufacturing and battery energy storage systems.

Brokerage view

SBI Securities gave the issue a “subscribe” rating, noting that margins currently trail listed peers due to limited exports and lack of backward integration. However, the brokerage expects profitability to improve as the company begins solar cell manufacturing in FY27.

At the IPO’s upper band, the valuation stands at 85.9 times FY25 earnings and 21.4 times EV/EBITDA, broadly in line with peers on an EV/EBITDA basis.

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

Financials and valuations

For FY25, Vikram Solar reported revenue of Rs 3,423 crore, EBITDA of Rs 492 crore, and adjusted PAT of Rs 140 crore. Between FY23 and FY25, revenue grew at a 29% CAGR, while EBITDA and PAT surged at 63% and 211%, respectively.

At the IPO’s upper band, valuations worked out to 85.9 times FY25 earnings and 21.4 times EV/EBITDA, broadly in line with listed peers on an EV/EBITDA basis.

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