Business Profile of Rayzon Solar Limited
Rayzon Solar Limited was incorporated in 2017 and working under manufacturing of solar panel in India. As on date, company has its own two manufacturing facilities located in Karanj and Sava in Surat, Gujarat with existing installed capacity of 3.00GW in PV module. The company has expertise in polycrystalline and monocrystalline solar modules which is used widely in commercial, residential and industrial purposes. Under company product portfolio include Black Modules, Monofacial Modules, Mono PERC Module, TOPCon Modules and Bifacial (dual glass or glass to glass) modules with TOPCon cells and Mono PERC cells.
Objective of Rayzon Solar IPO
As per the draft red hearing prospects, the IPO issue consists only offer for sale. The fresh issue consists of XXXX shares at the face value of ₨ 2.00 each aggregating up to ₹ 15,000.00 millions. There are only fresh issues and main objective of company is investment in subsidiary company and general corporate expenses.
Details of Rayzon Solar IPO
| IPO Open Date | N.A. |
| IPO Close Date | N.A. |
| Basis of Allotment | N.A. |
| Listing Date | N.A. |
| Face Value | ₹2.00 per share |
| Price | N.A. |
| Lot Size | N.A. |
| Total Issue Size | Up to XXXX Equity Shares |
| Aggregating up to ₨ 15,000.00 million | |
| Fresh Issue | Up to XXXX Equity Shares |
| Aggregating up to ₨ 15,000.00 million | |
| Offer For Sale | N.A. |
| N.A. | |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE & NSE |
| QIB Shares Offered | Not more than 50% of the Net Issue |
| Retail Shares Offered | Not more than 35% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
Rayzon Solar IPO: Issue Price & Size
The issue price of RAYZON SOLARLIMITED hasn’t been released yet. Upon releasing the dates, the investors can bid between those price ranges. The company has fresh issue aggregating up to ₹ 15,000.00 million at the price of ₨XXXX.
Launch Date of Rayzon Solar IPO
The IPO opening date of RAYZON SOLARLIMITED hasn’t been officially announced yet, upon the declaration of dates investor can bid for IPO.
Financial Statements of Rayzon Solar Limited
| Particulars | Ended Dec 31 ,2024 | Mar 31 , 2024 | Mar 31 , 2023 | Mar 31 , 2022 |
| Consolidated | Standalone | Standalone | Standalone | |
| Revenue | ||||
| Revenue from Operations | 19,570.01 | 12,728.47 | 6,980.18 | 2,616.48 |
| Other Income | 70.01 | 25.29 | 1.70 | 37.44 |
| Total Revenue | 19,640.02 | 12,753.76 | 6,981.88 | 2,653.92 |
| Expenses | ||||
| Cost of Material Consumed | 14,423.38 | 11,009.65 | 6,179.90 | 2,540.20 |
| Changes in Inventories of Finished Goods | ( 386.85 ) | ( 163.86 ) | ( 12.22 ) | ( 168.59 ) |
| Employee Benefit Expenses | 444.77 | 313.09 | 155.32 | 64.03 |
| Finance Costs | 142.27 | 84.07 | 56.96 | 22.48 |
| Depreciation and Amortization Expense | 204.97 | 112.79 | 47.81 | 51.93 |
| Other Expenses | 1,610.25 | 580.76 | 209.11 | 83.55 |
| Total Expenses | 16,438.79 | 11,936.50 | 6,636.88 | 2,593.60 |
| Profit Before Tax | 3,201.23 | 817.26 | 345.00 | 60.32 |
| Tax Expense : | ||||
| Current Tax expense | 818.24 | 202.14 | 89.87 | 21.60 |
| Tax for earlier years | 1.73 | 0.11 | - | - |
| Deferred Tax ( credity expense | ( 9.02 ) | 5.63 | 0.35 | ( 0.40 ) |
| Total Tax Expense | 810.95 | 207.88 | 90.22 | 21.20 |
| Profit for the period / year | 2,390.27 | 609.38 | 254.78 | 39.12 |
Key financial ratios of Rayzon Solar Limited
| Financial Metrics | Ended Dec 31 ,2024 | Mar 31 , 2024 | Mar 31 , 2023 | Mar 31 , 2022 | |
| Revenue from Operations |
(in millions) | 19,570.01 | 12,728.47 | 6,980.18 | 2,616.48 |
| Revenue Growth | ( % ) | - | 82.35 % | 166.78 % | - |
| Total Income | (in millions) | 19,640.02 | 12,753.76 | 6,981.88 | 2,653.92 |
| EBITDA | (in millions) | 3,548.47 | 1,014.12 | 449.77 | 134.73 |
| EBITDA Margin | ( % ) | 18.07 % | 7.95 % | 6.44 % | 5.08 % |
| PAT | (in millions) | 2,390.27 | 609.38 | 254.78 | 39.12 |
| PAT Margin | ( % ) | 12.17 % | 4.78 % | 3.65 % | 1.47 % |
| Raw Material Cost | (in millions) | 14,423.38 | 11,009.65 | 6,179.90 | 2,540.20 |
| Gross Debt | (in millions) | 1,726.22 | 1,028.77 | 548.73 | 459.34 |
| Net Debt | (in millions) . | 1,393.86 | 778.89 | 532.15 | 443.52 |
| Debt / Equity | - | 0.53 | 1.18 | 2.08 | 3.18 |
| Net Debt to EBITDA | - | 0.39 | 0.77 | 1.18 | 3.29 |
| ROCE | ( % ) | 96.88 % | 66.33 % | 56.81 % | 20.24 % |
| ROE | ( % ) | 115.67 % | 107.34 % | 124.90 % | 37.64 % |
| Inventory Turnover Ratio | In Times | 6.92 * | 18.85 | 11.72 | 7.57 |
| Receivable Turnover Ratio | In Times | 16.56 * | 35.87 | 92.71 | 52.86 |
| Trade Payable Turnover Ratio | In Times | 10.87 * | 17.84 | 18.37 | 13.24 |
Promoters & Shareholding Rayzon Solar IPO
As of date, according to the DRHP filed with SEBI promoters and promoter group have 98.10% shareholding in company.
| Name of the Shareholder | Number of Equity Shares | Equity Share capital (% ) |
| Promoter & Promoter Group | 50,009,000 | 16.35 |
| Hardik Ashokbhai Kothiya | 50,009,000 | 16.35 |
| Chirag Devchandbhai Nakrani | 37,510,000 | 12.26 |
| Ashokbhai Manjibhai Kothiya | 37,510,000 | 12.26 |
| Devchandbhai Kalubhai Nakrani | 49,980,000 | 16.34 |
| Ramilaben Ashokbhai Kothiya | 49,980,000 | 16.34 |
| Induben Devchandbhai Nakrani | 12,500,000 | 4.09 |
| AMK Family Trust | 12,500,000 | 4.09 |
| DKN Family Trust | 50,009,000 | 16.35 |
| Snehal Chirag Nakrani | 1,000 | Negligible |
| Krishna Hardik Kothiya | 1,000 | Negligible |
| Jalpaben Jasminbhai Hirpara | 68,380 | 0.02 |
| Darshil Bharatbhai Gondaliya | 19,230 | 0.01 |
| Total | 300,087,610 | 98.10 |
| Public | 5,801,482 | 1.90 |
| Total | 305,889,092 | 100 |
Should You Subscribe To Rayzon Solar IPO
While investing or subscribing to any IPO, consider the investment rationales related to the company. Hence, here you can find out the strength of the company that will be its growth factors. And also check the risk factors that can affect the growth and operational efficiency of the company.
Competitive Strengths of Rayzon Solar IPO:
Advanced Manufacturing and R&D Capabilities
The company runs two manufacturing facilities in Karanj and Sava facility in Gujarat, with total Solar PV manufacturing capacity of 6.00 GW. These facilities are equipped with advanced machinery and industrial-grade automatic tools with ensuring highest standard quality and efficiency. This technological advancement enables company to meet increasing demand for solar products while maintaining competitive pricing. It enhances operational efficiency and product quality according to needs of customers.
Strong Positioned in Industry Tailwinds
The company is strategically positioned to leverage the favorable industry tailwinds in the renewable energy sector both domestically and globally. In India, company had the third largest renewable energy base in the world in 2024. The generation capacity of India installed base increased from 356 GW in Fiscal 2019 to 475 GW in Fiscal 2025 on the back of healthy renewable capacity additions (including solar, wind, hybrid and other sources), and is projected to increase to 730 GW to 780 GW by Fiscal 2030.
Diversified Customer Base
The company has strategically expanded its operational capacities while also integrating backward into solar cell manufacturing. This move will enhance company control over the supply chain, improve production efficiency, and better position them to meet the evolving demands of the renewable energy market. This approach not only enhances company market share, but also enables it to offer competitively priced products that meet the diverse needs of clients.
Expansive Distribution Network
Rayzon Solar ltd. has established a robust and diverse distribution network across India, strategically designed to ensure seamless delivery and accessibility of our solar products. The distribution framework includes regional hubs and local distributors or channel partners, facilitating efficient supply chain management and prompt customer service. As of December 31, 2024, company network comprised 68 channel partners across 59 cities in 20 States and/or Union Territories in India.
Risk Factors of Rayzon Solar IPO:
Product Concentration risk
The revenues are dependent on the demand and sale of a limited number of variants of solar PV modules. If the demand for solar power or solar power projects fails to develop or takes longer to develop than expected, revenues may decline, and company may be unable to sustain its profitability. As a result, business of company is subject to changes in demand for solar PV modules and solar cells and reduction in demand for solar PV modules may adversely affect company sales, results of operations and cash flows.
Changes in raw material price
In order to manufacture solar PV modules, company require multiple raw materials and components, primarily solar cells, glass, aluminium frames, backsheets and encapsulation materials. The cost of raw materials constitutes a significant portion of total manufacturing cost. Any changes in the prices of raw materials due to changes in global demand or supply or other factors could adversely affect company manufacturing of solar PV modules, which may then have an adverse effect on it business, financial condition and results of operations.
Key customer risk
The company business is dependent on certain key customers, with our top 10 customers contributing 40.29%, 47.81%, 39.82% and 36.14% of our revenue from operations in the nine months ended December 31, 2024 and Fiscal 2024, 2023 and 2022, respectively. The loss of any one or more of such key customers for any reason (including due to failure to negotiate acceptable terms or due to ongoing disputes with customers) could have an adverse effect on business, results of operations and financial condition.
Regulatory risk
There are multiple risks associated with operating in the solar module manufacturing industry. One of the key risks company face is regulatory changes. The solar industry in India is heavily influenced by government policies and regulatory framework. Additionally, delays in obtaining necessary government approvals and permits could impact company project timelines and costs. If such risks materialize, company business, financial condition and results of operations, among others, could be adversely affected.
Rayzon Solar IPO Grey Market Premium
Grey market premium is the premium quoted over the IPO issue price. GMP shows that investors are ready to pay above the upper band of the IPO issue price. GMP is determined in the grey market as per the demand and supply of the shares in the primary market. A grey market is that unofficial ecosystem of unlisted companies' stocks that start trading even before the launch of the IPO to the date of its listing.
Also Read: What is Grey Market Premium in IPO: How is GMP Calculated & Reliable
However, GMP is not a reliable factor, as it keeps fluctuating as per the demand and supply of shares in the primary market. There are numerous factors that affect the stock market in India and individual stock prices of different companies that are already listed and trading in the secondary market. However, for an IPO-bounded company, you can consider the GMP as the speculative listing price of the share
According to various online sources, the Grey Market Premium or GMP of the RAYZON SOLAR LIMITED is trading around Rs XX in the grey market. It means shares are trading at the upper band issue price of Rs XX with a premium in the grey market and may list around the same price.
