Vikram Solar – About the Company
Vikram Solar is one of the largest solar module manufacturers in India with an annual production capacity of 2.3 GW. Andin terms of operation capacity and production of solar energy it is India’s largest module manufacturer of photovoltaic panels.
Apart from solar panel manufacturing, it also provides engineering, procurement and construction services and operations and maintenance (O&M) services to its customers with a combined experience of 1.42 GW across its portfolio.
Apart from a strong presence in the domestic market, it has also expanded its operations in the international markets. Currently, it has a sales office in the US and a procurement office in China, supplying solar PV modules to customers in 32 countries.
Founded in 1956 as a garment business but transformed into a solar module manufacturing company and now operating for 12 years in the solar panel business. The leading customers of the company are from PSUs and well-known private companies. Its top clients are NTPC,HPCL, West Bengal State Electricity Distribution Company, Solar Energy Corporation of India, Amp Energy India, Azure Power, Safari Energy, Amp Solar Development, Standard Solar and Southern Current etc.
Its customers are PSUs and well-known private companies like NTPC, West Bengal State Electricity Distribution Company, Solar Energy Corporation of India, and HPCL, Azure Power, Amp Energy India, while international customers include Safari Energy, Amp Solar Development, Standard Solar and Southern Current.
As of Dec 2021, it has cumulative annual rated production grew to 2.5GW, including an aggregate of power generated across factories in Falta SEZ (West Bengal) and Oragudem (Tamil Nadu). The company is further looking to upgrade its production capacity at the existing plant Falta which will enhance its manufacturing capacity to 3GW from the current 1.2GW.
Vikram Solar IPO Objectives
The main objective of Vikram Solar IPO is to install the new 2000 MW integrated solar cell and solar module manufacturing facility in Tamil Nadu.The remaining part of the fund raised through this IPO will be also used for general corporate purposes.
Vikram Solar IPO Details:
|IPO Open Date||To be Updated|
|IPO Close Date||To be Updated|
|Listing Date||To be Updated|
|Face Value||Rs 10 per share|
|Price||To be Updated|
|Lot Size||To be Updated|
|Issue Size||Rs 2000|
|Offer For Sale||5,000,000 Equity Shares, aggregating up to Rs 500 crore|
|Fresh Issue||Rs 1500|
|Issue Type||Book Built Issue IPO|
|Listing At||BSE & NSE|
|QIB Shares Offered||Not more than 50% of the Offer|
|NII (HNI) Shares Offered||Not less than 15% of the Offer|
|Retail Shares Offered||Not less than 35% of the Offer|
Vikram Solar IPO Issue Price & Size
The issue price of Vikram Solar IPO is not yet known, as the launch date of the IPO has not been declared by the company. Though, the company has got the nod from SEBI, to launch the IPO, right now company has not yet declared such dates.
As per the DRHP Vikram Solar IPO Issue size will be around Rs 2000, out of which Rs 1500 crore consists of fresh issues and the remaining will be Offer-for-Sale (OFS) of up to 5,000,000 equity shares by the selling shareholders. However, the company has already considered a pre-IPO placement worth Rs.300 crores that will reduce the total issue size of the IPO.
Vikram Solar IPO Launch Date
The launch date of Vikram Solar IPO has been not declared yet, hence it is not known. Once the IPO price and launch date are decided and the company plans to introduce the IPO, all the details will be updated soon with the latest updates.
Vikram Solar Financial Statements:
|Particulars (Rs in Million)||FY22 (6M)||FY21||FY20||FY19|
|Revenue from Operations||5,978.52||16101.38||16396.83||20168.36|
Vikram Solar Financial Performance
The revenue of Vikram Solar stood at 597.85 crore in the first half of FY22, while in full FY21 the Revenue was at Rs 1610.14 crore declining from the Revenue of Rs 2016.83 crore in FY19. The revenue of company mainly affected by the pandemic which was at its peak from 2019 to 2020 making it difficult for such companies to run their business.
However, the operating income of the company during the same period also showed a decline in the growth and that is mainly because of the high operating cost that the company incurred during their normal course of business. The EBITDA margin of the company fell to 5.9% from 9.06% in FY19 making it difficult for the company to improve its operating margins.
While, on the other hand, the company has reduced its financing cost during the last two and half years but still not been able to make the company profitable resulting in the first half of the FY22 company has incurred a loss of Rs 18.96 crore from the net profit of Rs 40.82 crore in FY19. The company has operated at very thin net profit margins of 2% in FY19 and now become negative.
Vikram Solar IPO Promoters & Shareholding of the Company
The Promoters Vikram Solar are Hari Krishna Chaudhary, Gyanesh Chaudhary, Hari Krishna Chaudhary Family Trust, Gyanesh Chaudhary Family Trust, Vikram Financial Services Limited and Vikram Capital Management Private Limited (formerly, Mono link Trexim Private Limited).
In the promoters group, Anil Chaudhary and other shareholders like Anil Chaudhary, Anil Chaudhary and Anil Chaudhary are selling their shareholding through this IPO.
Vikram Solar Shareholdings:
|S.No.||Name of the Shareholder||No. of Shares||% of pre-Offer Shareholding|
|1||Hari Krishna Chaudhary||13,731,146||5.31%|
|3||Vikram Capital Management Private Limited(formerly, MonolinkTrexim Private Limited)||111,109,900||42.93%|
|4||Vikram Financial Services Limited||16,421,900||6.34%|
|5||Hari Krishna Chaudhary Family Trust||72,986,090||28.20%|
|6||Gyanesh Chaudhary Family Trust||100,000||0.04%|
|Promoters Group & Selling Shareholders|
|2||Girish Kumar Madhogaria||258,500||0.10%|
|4||Vikram India Limited||10,991,750||4.24%|
|Grand Total (A+B)||252,296,000||97.47%|
Why Invest in Vikram Solar IPO?
Investing in the Vikram Solar IPO, you have one of the most encouraging reasons for its business. The solar panel industry is one of the fastest growing industries with immense scope for further growth due to the increase in demand for solar panels and energy production.
However, to invest in the Vikram IPO, you need to consider the strength of the company that helps its business grow and generate revenue. At the same, there a certain risks too, that companies face while operating their business operations. Here below we have tried to analyse the strength and risk of the company with various other aspects.
- With an installed manufacturing capacity of 2.5 GW of solar PV modules, the company enjoys a 19% market share in the solar panel industry. The company has a presence in the domestic market with the PAN India presence in 3 union territories and 23 states.
- The company operates with a distribution network of 42 distributors and has 56 trusted resellers of its products across India with a network of 97 empanelled system integrators to ensure that the customers can get genuine products with a simple purchasing process and smooth technical guidance.
- The company at the time of inception in 1956 involved in the garment business but later transformed into a solar module manufacturing company. In the last 12 years, it has built strong engineering capabilities in producing high-efficiency PV modules.
- Apart from a strong presence in the domestic market, the company has also established a strong brand recall to extend its global footprint with offices in the United States of America and China.
- Apart from manufacturing, the high-efficiency solar PV module, the company also have the advantage of providing the EPC and O&M services as a supplemental value add to its solar PV module manufacturing business.
- The solar panel industry is also driven by macroeconomic factors and the favourable policy of the government towards this industry. The Indian government has set the target of achieving 500 GW of non-fossil energy by 2030, and solar energy is also going to contribute at a large scale.
- Despite being one of the largest solar panel manufacturing companies in India, Vikram Solar is facing intense competition from large companies that also entered into this business with a better financial position.
- To maintain its growth momentum, and ensure the revenue of the company, it has to enhance the installed capacity of solar panel manufacturing.
- The company don’t have long-term contracts with suppliers of solar PV cells, hence there is a risk that raw materials procurements can increase the operating cost of the company due to such unavailability.
- The solar panel industry has been getting favourable policies for many years to promote green energy and any kind of unfavourable policy can affect the growth and scope of revenue in such conditions.
- To enhance the production capacity, the company is looking to build new manufacturing plants, any kind of disruption due to legal proceedings or procurements of land or equipment can affect the company.
- At the financial end, the company has shown a decline in revenue and operating profit in the last three years. The company is already running at very low operating margins, and the PAT margins of the company came from 2% in FY19 into a negative zone resulting company incurring a loss of Rs 18.96 crore in the first half of FY22, compared to a profit of the 40.82 crore.
Vikram Solar IPO Grey Market Premium
The Grey Market Premium of Vikram Solar IPO is not known as the IPO price has not been declared yet. The Grey Market Premium or GMP is the premium of price over the upper band of IPO price that is disclosed in the grey market before the listing.
The GMP of any IPO can fluctuate as per the demand and supply of the shares in the primary market. Before the listing, the GMP can increase or decrease making a speculative price of the IPO around which the share is going to list on the bourses.
Vikram Solar IPO Review & Analysis
If you analyse the trend of the entire solar industry in India or globally you can see there is huge scope and immense opportunities for the companies involved in the solar panel manufacturing, procurement, construction, plant installation and production of solar-based energy in India or any part of the world. This kind of opportunistic market conditions in the economy make a good opportunity for every company including Vikram Solar to grow with the industry.
Visualizing the macroeconomic factors, the solar industry especially in India is further going to get privileges from the central government through favourable policies. And Vikram Solar is not going to miss this opportunity to expand its business operations.
Fundamentally Vikram Solar is not a bad company, though due to the pandemic company has shown a decline in growth but tried to maintain its revenue and earnings. However further growth and revenue or earnings of the company is going to depend on the more installed capacity and production or installation of solar plants in a more efficient manner.
On the valuation front, evaluating the share price of the Vikram Solar IPO is not possible right now as the issue price is not yet. And without knowing the share price of any company it is not possible to compare the same with other group companies or listed peers.
However, whenever the share price of the Vikram Solar IPO is disclosed check whether it is issued at a premium or discount. If the IPO issue price is declared at a discount and the valuation is cheaper than its listed peer then you can apply for the Vikram Solar IPO with a listing gains point of view orlong-term investment purpose as your time horizon for such investments.
If the Vikram Solar IPO is declared with the issue price of a very high premium then you can avoid applying in the IPO or invest with a very long term time horizon. Applying for this IPO will be completely dependent on the IPO price is disclosed.
How to Apply for Vikram Solar IPO?
If you already have the trading account and demat account to trade in the secondary market you can apply in the IPO through the same account. However, if you don’t have first of all apply for opening the new trading and demat account with Moneysukh.
Once your identity and address proof is verified you can apply for the IPO using Moneysukh’s online trading platform. To apply for the Vikram Solar IPO or any other forthcoming IPO through Moneysukh, just follow the steps given below.
Steps to Apply for Vikram Solar IPO:
Step 1: When Vikram Solar IPO online bidding starts you can apply.
Step 2: Now open trade.moneysukh.com and log in with your User ID & password.
Step 3: After login find the IPO section and select the Vikram Solar IPO.
Step 4: Here you need to fill in the various details like price, quantity, and so on.
Note: At the time of applying in IPOs, make sure to bid at the cut-off price and then submit your application.
Step 5: Finally you have to make the payment and submit your IPO application.
How to Check Vikram Solar IPO Allotment Status?
Using the Moneysukh online trading platform, you can apply for an IPO and also check the IPO related various key details that are usually given in the DRHP. Here, you can also check the IPO allotment status in a very easy and trouble-free manner with a few steps.
The allotment process of IPO starts after a few days once the IPO bidding process is closed. And using various online platforms including Moneysukh, you can check the IPO allotment process using your PAN card or IPO application details.
During the allotment, if the IPO is oversubscribed in all categories including retail then there is less chance of getting the allotment. Hence next time you can apply in the HNI category to increase your chances of getting the allotment of shares applying in IPOs.
If you did not get the allotment of shares in IPO, your application money will be refunded into your bank account or the fund will be unblocked if applied through ASBA. If you get the allotment of shares in Vikram Solar IPO, then shares will be transferred into your demat account before the day of listing and you can sell these shares and book profits if listed at a premium.