Image Source: The Economic Times
In a strong show of investor confidence, Vikram Solar has successfully raised ₹621 crore from anchor investors just a day before its ₹2,079 crore initial public offering opens for public subscription. The Kolkata-based solar module manufacturer allotted 1.87 crore equity shares to 43 institutional investors at ₹332 per share, the upper end of its IPO price band.
The IPO, scheduled to run from August 19 to August 21, includes a fresh issue of shares worth ₹1,500 crore and an offer for sale of 1.74 crore shares valued at ₹579.37 crore. The price band has been set between ₹315 and ₹332 per share.
Key Highlights from the Anchor Round
- Vikram Solar attracted marquee global and domestic investors including Goldman Sachs Fund, Morgan Stanley India Investment Fund, BNP Paribas, HSBC, Citigroup, ICICI Prudential Life Insurance, and SBI General Insurance Company.
- Domestic mutual funds such as UTI MF, Franklin Templeton MF, Kotak Mahindra MF, Nippon India MF, and Edelweiss MF also participated in the anchor round.
- The anchor book allocation signals strong institutional appetite for clean energy investments amid India’s aggressive renewable energy targets.
Strategic Use of IPO Proceeds
The company plans to deploy the fresh capital raised through the IPO for strategic expansion and infrastructure development:
- Investment in its wholly owned subsidiary, VSL Green Power Private Ltd, for Phase I and Phase II of its solar manufacturing project.
- Capital expenditure aimed at scaling up solar cell and module manufacturing capacity at its Gangaikondan facility in Tamil Nadu.
- General corporate purposes to support operational growth and market expansion.
Manufacturing Footprint and Capacity Expansion
Vikram Solar has evolved from a modest 12 MW solar PV module capacity in 2009 to an impressive 4.50 GW as of today. The company operates:
- Two solar PV module manufacturing facilities in West Bengal and Tamil Nadu
- A solar cell manufacturing facility with two units in Gangaikondan, Tamil Nadu
- Plans to expand total capacity to 15.50 GW by FY26 and further to 20.50 GW by FY27
According to CRISIL, Vikram Solar holds one of the largest capacities among non-captive manufacturers listed on the Ministry of New and Renewable Energy’s approved list, with 2.85 GW certified as of June 2025.
Pan-India Presence and Client Portfolio
The company has established a robust national footprint, serving 19 states and two Union Territories. Its client base includes:
- Government entities such as NTPC, Neyveli Lignite Corporation, and Gujarat Industries Power Company
- Leading private independent power producers including Adani Green Energy, Azure Power India, JSW Energy, ACME Cleantech Solutions, and Rays Power Infra
This diversified customer base positions Vikram Solar as a key player in India’s clean energy transition.
Financial Performance and Growth Trajectory
Vikram Solar has demonstrated strong financial growth in recent years:
- Revenue from operations surged 36 percent to ₹3,423 crore in FY25 from ₹2,511 crore in FY24
- Profit after tax jumped 75 percent to ₹140 crore in FY25 from ₹80 crore in the previous fiscal
- The company’s consistent performance and expansion plans have contributed to heightened investor interest in its IPO
IPO Management and Timeline
- Book-running lead managers include JM Financial, Nuvama Wealth Management, UBS Securities, Equirus Capital, and PhillipCapital
- Link Intime India has been appointed as the registrar for the IPO
- Subscription window: August 19 to August 21, 2025
Conclusion: Vikram Solar’s IPO Signals a Bright Future for Clean Energy Investment
With ₹621 crore already secured from top-tier anchor investors, Vikram Solar’s IPO is poised to be a landmark event in India’s renewable energy sector. The company’s aggressive expansion plans, strong financials, and strategic investor backing reflect growing confidence in solar manufacturing as a cornerstone of India’s energy future.
Source: Outlook Business
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