Vikram Solar Limited, one of India’s top solar energy companies, has launched its much-anticipated Initial Public Offering (IPO) with a price band set at ₹315–332 per equity share. The IPO aims to tap into soaring investor appetite for renewables, backed by robust sector growth, government policy support, and the company’s aggressive expansion strategy. Here’s an in-depth look at the offering, company fundamentals, and what to expect as the subscription window opens August 19–21, 2025.
Key Highlights of the Vikram Solar IPO
The IPO comprises a fresh issue of shares worth ₹1,500 crore and an offer for sale (OFS) of approximately 1.74 crore shares from promoters. The total issue size is ₹2,079.37 crore.
Price band: ₹315–332 per share.
Minimum bid: 45 shares per lot, requiring a retail investment of at least ₹14,940. Allotment is expected on August 22 and listing on August 26, 2025, on BSE and NSE.
QIBs (Qualified Institutional Buyers), retail investors, and HNIs will receive 50%, 35%, and 15% of the allocation, respectively.
The anchor book will open on August 18, 2025.
IPO Objectives and Use of Proceeds
The funds will be used primarily for two key capex projects:
₹793 crore to set up a new 3,000MW solar cell and module facility in Tamil Nadu through subsidiary VSL Green Power.
₹603 crore to double capacity at its existing module facility from 3,000MW to 6,000MW.
Remaining funds are allocated to general corporate purposes and to strengthen working capital.
These projects will help Vikram Solar ramp up total capacity to an ambitious 10.5GW by fiscal 2026, reinforcing its position in India’s solar manufacturing ecosystem.
Company Financials and Performance Trends
Revenue for FY24 grew 21% year-on-year to ₹2,510 crore, with 61% of sales from exports.
EBITDA nearly doubled to ₹398 crore, and net profit rose to ₹79 crore from ₹13 crore the previous year.
As of March 2024, the company had a debt-to-equity ratio of 1.73x, projected to drop below 1.0 post a ₹700 crore private placement.
ROE for March 2025 stands at 16.57%, with key operational margins reflecting strong cost controls and improving profitability. EPS is ₹4.61.
Business Overview and Market Position
Vikram Solar is a tier-1 manufacturer specializing in high-efficiency mono PERC and bifacial solar panels, serving India and global markets.
Its integrated business covers:
Solar module manufacturing (current capacity 4.5GW).
EPC (engineering, procurement, construction) projects, including large government and private solar plants.
O&M (operations and maintenance) for solar asset management.
Orders: The company boasts an 8,214MW order book, and with India targeting 500GW of renewables by 2030, it is strategically positioned for continued growth.
Clients include major institutions: NTPC, SECI, and top international developers.
IPO Pricing, Valuation, and Grey Market Insights
The IPO price band (₹315–332) is about 14% below its pre-IPO unlisted share price, making it accessible as sentiment shifts towards fairer valuations in recent Indian IPOs.
At the upper end, the market capitalization will stand near ₹14,190 crore.
The offer is expected to attract strong retail and institutional interest, given the company’s sector relevance, export orientation, and ambitious expansion pipeline.
Growth Outlook and Strategic Considerations
Vikram Solar is prioritizing manufacturing expansion, backward integration (into solar cells), and technology upgrades to reduce import dependence and align with India’s PLI (Production Linked Incentive) policy.
Risks include volatility in raw material prices, reliance on government policies, and competition from larger domestic and Chinese players. However, the capacity build-out and growing export footprint provide defense against sector cyclicality.
The IPO’s success will further bolster India’s standing as a renewable energy innovation and manufacturing hub.
Investor Takeaways
The IPO opens on August 19, with listing scheduled for August 26, 2025.
Investors should evaluate the offer’s long-term potential against sectoral tailwinds, the company’s order book, its improving financials, and the relatively attractive IPO pricing compared to recent market norms.
Source: TradingView, Moneycontrol, IPO Premium, InvestorGain, Chittorgarh, Mercom India, Planify, Business Today, Vikram Solar official financial disclosures
