As of March 31, 2025, Vikram Solar Limited is one of India's largest solar photo-voltaic ('PV') modules manufacturers in terms of operational capacity. With 4.50GW of installed manufacturing capacity for solar PV modules as on the date of this RHP, they are one of the largest pure play module manufacturers in India and the enlisted capacity as per Ministry of New & Renewable Energy's Approved List of Modules and Manufacturers ('ALMM') is 2.85 GW as of June 30, 2025. Company commenced the manufacturing operations in 2009 with an installed solar PV module manufacturing capacity of 12.00 MW, which has grown to 4.50 GW installed capacity as on the date of this RHP. The existing manufacturing facilities are strategically located at Falta SEZ in Kolkata, West Bengal and Oragadam in Chennai, Tamil Nadu, with access to ports, rail and roads. To meet growing demand, they are currently undertaking significant greenfield and brownfield expansion plans, which are expected to increase the installed solar PV module manufacturing capacity to up to 15.50 GW by Fiscal 2026 and up to 20.50 GW by Fiscal 2027. Furthermore, they are strategically backward integrating into the solar value chain by establishing a solar cell manufacturing facility with two units, 3.00 GW and 9.00 GW, in Gangaikondan, Tamil Nadu by Fiscal 2027. They also aim to start with a greenfield project for battery energy storage system ('BESS') with an initial capacity of 1.00 GWh in Tamil Nadu which is expandable to 5.00 GWh in Fiscal 2027, Company's portfolio of solar energy products consists of the following high-efficiency solar PV modules: (i) p-type monocrystalline silicon based Passivated Emitter and Rear Contact ('PERC') modules; (ii) N-Type monocrystalline silicon ('N-Type') modules; and (iii) n-type monocrystalline silicon based heterojunction technology ('HJT') modules; all of these being either bifacial (glass-to-glass / glass-to-transparent back sheet) or monofacial (glass-to-white/black back sheet) modules. The latest generation solar PV modules (including those under testing) have wattages between 395Wp and 735Wp rating. Their efficiencies range between 20.23% and 23.66% which are in line with the products available in market with similar technology. They are able to offer 12 years product warranty (on materials and workmanship), and 27 to 30 years performance warranties (on power output) for the solar PV modules at par with global standards. Company has established a pan-India presence, serving 19 states and two union territories, through an extensive distributor network which from grew from 41 authorized distributors as on September 30, 2024 to 83 authorized distributors as on the date of this RHP and 64 dealers as on September 30, 2024 to more than 250 dealers as on the date of this RHP. The key domestic customers include prominent government entities, such as National Thermal Power Corporation, Neyveli Lignite Corporation Limited and Gujarat Industries Power Company Limited, and large private independent power producers ('IPPs'), such as ACME Cleantech Solutions Pvt. Ltd., Adani Green Energy Limited, AMPIN Energy Transition Private Limited, Azure Power India Private Limited, JSW Energy Limited, First Energy 7 Private Limited and Rays Power Infra Private Limited, among others. As per financial performance, Vikram Solar Limited has posted total income / net profits of Rs 2,091.91 Cr / 14.49 Cr (FY23), Rs 2,523.96 Cr / Rs 79.72 Cr (FY24) and Rs 3,459.53 Cr / 139.83 Cr (FY25). So as per previous financials data, company has shown good sales growth, but net profit margin is very low and trade receivables for FY25 is around 35% of total sales, which is very high. Company has an average EPS of Rs 3.42 and average RoNW of 12.26% for last three fiscals. Issue is priced at a P/BV of 8.46 as per NAV of Rs 39.24/- as on 31.03.25. If we attribute latest earnings of FY23, FY24 and FY25 on equity post issue, then asking price is at a P/E of around 828.72, 150.64 and 85.88 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, JM Financial Limited, Nuvama Wealth Management Limited, UBS Securities India Private Limited, Equirus Capital Private Limited and PhillipCapital (India) Private Limited are associated with this IPO, and have handled 92 in last three fiscal years. ( As on 18.08.25 ) As per financials, Vikram Solar Limited has shown good sales growth, RoNW is 11.26% and P/E is 828.72, 150.64 and 85.88 respectively as per FY23, FY24 and FY25 earnings. So issue looks aggressively priced and trade receivables are also high. Company is a solar photo-voltaic ('PV') modules manufacturer, which is highly competitive & growing business segment. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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