Vikram Solar’s initial public offering (IPO) made a powerful debut on August 19, 2025, with full subscription achieved on the very first day of bidding. The Rs 2,079.37 crore issue, comprising both fresh equity and an offer for sale, attracted robust interest across investor categories, signaling strong market confidence in India’s solar manufacturing growth story.
The IPO, which will remain open until August 21, is being closely watched by institutional and retail investors alike, given Vikram Solar’s leadership in photovoltaic module manufacturing and its aggressive expansion plans. Exchange data confirms that non-institutional investors led the charge, while retail and qualified institutional buyers followed with steady participation.
Key Highlights from Day One
- Full subscription achieved on Day 1 of bidding
- Non-institutional investor (NII) category oversubscribed 1.75 times
- Retail investor portion subscribed 82 percent
- Qualified institutional buyer (QIB) segment saw modest interest at 1 percent
- Price band fixed between Rs 315 and Rs 332 per share
IPO Structure and Fund Utilization
The IPO consists of a fresh issue worth Rs 1,500 crore and an offer for sale (OFS) of Rs 579.37 crore. The fresh capital will be deployed primarily toward capacity expansion and strategic investments in Vikram Solar’s wholly owned subsidiary, VSL Green Power.
- Rs 769.7 crore allocated for Phase-I investment in VSL Green Power
- Rs 595.2 crore earmarked for Phase-II expansion at the same facility
- Rs 135.1 crore reserved for general corporate purposes
The company aims to scale its solar PV module manufacturing capacity from 4.5 GW to 20.5 GW by FY27, alongside setting up 12 GW of solar cell capacity in Tamil Nadu. Additionally, Vikram Solar is entering the battery energy storage systems (BESS) segment with a greenfield project starting at 1 GWh, expandable to 5 GWh.
Investor Sentiment and Grey Market Premium
Ahead of the IPO launch, Vikram Solar raised Rs 620.8 crore from anchor investors, further boosting market sentiment. The grey market premium (GMP), which had peaked at Rs 72 per share earlier in August, settled at Rs 54 to Rs 56 on Day 1, indicating an expected listing price of approximately Rs 386—well above the upper price band.
- GMP suggests potential listing gains of 16 to 21 percent
- Anchor investors include top domestic and global institutions
- Listing expected on August 25 on both BSE and NSE
Financial Performance and Growth Outlook
Vikram Solar reported strong financials for FY25, with revenue rising 37 percent year-on-year to Rs 3,459.5 crore and net profit surging 75 percent to Rs 139.8 crore. The company’s integrated manufacturing model and policy tailwinds under India’s Production Linked Incentive (PLI) scheme have positioned it as a key player in the renewable energy space.
- FY25 revenue: Rs 3,459.5 crore
- FY25 net profit: Rs 139.8 crore
- Operational revenue derived primarily from solar PV modules
Risks and Considerations
While investor enthusiasm is high, analysts caution that Vikram Solar’s dependence on solar PV modules—accounting for over 97 percent of operational revenue in FY24—poses concentration risks. Additionally, the company lacks long-term contracts for raw materials, making it vulnerable to price volatility and supply disruptions.
- Exposure to wafer and cell price fluctuations
- Absence of long-term supplier agreements
- High reliance on a single product category
Conclusion: A Promising Start with Strategic Depth
Vikram Solar’s IPO debut underscores the growing investor appetite for clean energy and domestic manufacturing plays. With full subscription on Day 1 and a strong financial and operational foundation, the company is well-positioned to capitalize on India’s solar ambitions. However, sustained performance will depend on execution, diversification, and supply chain resilience.
Sources: Zee Business, Financial Express, Groww, MSN India.
