The renewable energy sector is at the heart of India’s growth story, and Vikram Solar Limited, one of the country’s leading solar module manufacturers, is set to make a big move with its Initial Public Offering (IPO) in August 2025. Investors and analysts are closely tracking this public issue, considering the company’s strong presence in the solar industry and ambitious expansion plans.
This detailed guide covers everything about the Vikram Solar IPO — from issue size, price band, subscription details, company financials, and order book strength to expert recommendations.
Vikram Solar IPO Overview
Vikram Solar is launching an IPO that includes both a fresh issue of shares and an offer-for-sale (OFS) by existing shareholders. The company aims to raise capital for expansion while allowing current investors to partially exit.
- Total Issue Size: ₹2,079 crore
- Fresh Issue: ₹1,500 crore (new shares issued by the company)
- Offer for Sale (OFS): ₹579 crore (shares sold by promoters and existing investors)
This combination ensures that the company raises funds for growth while also providing liquidity to early shareholders.
IPO Price Band and Lot Size
- Price Band: ₹315 to ₹332 per share
- Lot Size: 45 shares per lot
- Minimum Investment: ₹14,940 (at the upper price band)
- Maximum Investment (Retail): Retail investors can apply for up to 13 lots, i.e., 585 shares, amounting to ₹1,94,220.
The pricing has been structured to attract a wide base of retail, institutional, and high-net-worth investors.
IPO Timeline
| Event | Date |
|---|---|
| Issue Opening Date | 19 August 2025 |
| Issue Closing Date | 21 August 2025 |
| Basis of Allotment | 22 August 2025 |
| Refunds Initiated | 25 August 2025 |
| Shares Credited to Demat | 25 August 2025 |
| Listing Date | 26 August 2025 |
The IPO is being managed by a strong group of lead managers and is expected to list on both BSE and NSE.
Investor Allocation
The allocation of shares in Vikram Solar IPO is structured as per SEBI guidelines:
- Qualified Institutional Buyers (QIBs): Up to 50% of the net issue
- Retail Investors: Minimum 35% of the net issue
- Non-Institutional Investors (NIIs): Minimum 15% of the net issue
- Employee Reservation: A small portion is reserved for employees at a discounted price
This ensures balanced participation across retail and institutional categories.
Grey Market Premium (GMP) Trends
The grey market premium (GMP) is an important indicator of investor sentiment. Ahead of the IPO launch, Vikram Solar’s GMP ranged between ₹54 to ₹70, which signals a premium of 16% to 21% over the upper price band.
This suggests a potential listing price around ₹389–₹400 per share, indicating the possibility of healthy listing gains.
Use of IPO Proceeds
The funds raised from the fresh issue will be used strategically to strengthen Vikram Solar’s business model and manufacturing capacity:
- Capital Expenditure: ₹793 crore will be invested into VSL Green Power Pvt Ltd, a subsidiary, for setting up advanced facilities.
- Project Expansion: ₹603 crore is earmarked for the company’s Phase-II expansion projects.
- General Corporate Purposes: Around ₹104 crore will go toward overall business requirements, including working capital and debt repayment.
A significant portion of the funds is directed towards establishing a 3 GW solar cell and module manufacturing facility in Tamil Nadu, which will enhance the company’s capacity and backward integration.
Company Background
- Founded: 2005
- Headquarters: Kolkata, West Bengal
- Current Capacity: 4.5 GW solar module production as of March 2024
- Client Base: Includes NTPC, Adani Green, JSW Energy, Azure Power, ACME, and other large energy players
- Global Reach: Operates in over 39 countries
Vikram Solar started with a modest capacity of 12 MW in 2009 and has now become one of India’s largest solar PV manufacturers, playing a vital role in the nation’s renewable energy mission.
Growth Plans
The company has ambitious plans to expand aggressively:
- Increase manufacturing capacity from 4.5 GW to 15.5 GW by FY26
- Further scale to 20.5 GW by FY27
- Enter the solar cell manufacturing segment for vertical integration
- Explore battery energy storage solutions, which are critical for the future of renewable energy
These plans align perfectly with India’s target of achieving 500 GW of renewable energy capacity by 2030.
Financial Performance
Vikram Solar has delivered strong financial growth over the last three years:
- Revenue FY25: ₹3,423 crore
- EBITDA FY25: ₹492 crore
- Profit After Tax (PAT) FY25: ₹140 crore
- Revenue CAGR (FY23–FY25): ~29%
- EBITDA CAGR (FY23–FY25): ~63%
- PAT CAGR (FY23–FY25): ~211%
The company’s strong profitability and rapid growth in margins highlight operational efficiency and scalability.
Order Book Strength
As of March 2025, Vikram Solar reported an order pipeline of 10,340 MW, which is 2.3 times its current production capacity.
- Orders Under Execution: 6,425 MW
- Pending Orders: 3,916 MW
This strong order book provides visibility into revenue growth for the coming years.
Anchor Investors
Before the IPO opened for public subscription, Vikram Solar raised ₹621 crore from anchor investors. These included some of the world’s leading financial institutions and domestic mutual funds:
- Goldman Sachs
- Morgan Stanley India
- BNP Paribas
- HSBC
- Citigroup
- ICICI Prudential Life Insurance
- SBI General Insurance
- UTI Mutual Fund
- Kotak Mahindra AMC
- Nippon India Mutual Fund
The participation of such reputed investors reflects high confidence in Vikram Solar’s business model and growth potential.
Strengths of Vikram Solar
- Strong Brand & Market Presence: One of India’s leading solar module manufacturers with global presence.
- Robust Clientele: Long-term partnerships with major Indian and international companies.
- Large Order Book: Ensures revenue visibility for the next 2–3 years.
- Capacity Expansion: Aggressive growth plans to meet rising demand.
- Policy Support: Benefits from government incentives like PLI schemes and renewable energy targets.
Risks and Challenges
Despite strong fundamentals, there are certain risks investors should keep in mind:
- Capital Intensive Expansion: Huge investments needed for growth may strain cash flows.
- Customer Concentration: A large portion of revenue comes from a few big clients.
- Supply Chain Dependence: Import reliance for raw materials like solar cells could affect margins.
- Execution Risks: Large-scale expansion plans may face delays or cost overruns.
- Global Competition: International solar manufacturers pose strong competition.
Expert Recommendations
Different brokerage houses and analysts have shared mixed opinions about the IPO:
- Positive Views: Many experts recommend subscribing due to the company’s strong order book, growing financials, and renewable energy sector tailwinds.
- Cautious Views: Some analysts highlight high capital intensity and competitive risks, suggesting the IPO is best suited for investors with higher risk appetite.
Overall, the majority sentiment leans towards “Subscribe for long-term gains.”
Final Verdict
The Vikram Solar IPO is one of the most awaited issues in 2025, representing India’s renewable energy push. With a strong financial track record, aggressive expansion strategy, and reputed anchor investors, the company is well-positioned for growth.
Key Takeaways for Investors:
- IPO Size: ₹2,079 crore (₹1,500 crore fresh + ₹579 crore OFS)
- Price Band: ₹315 – ₹332
- GMP Indication: Premium of ~16–21% over issue price
- Strengths: Strong brand, high order book, financial growth
- Risks: High capex, customer concentration, execution challenges
Conclusion: The Vikram Solar IPO offers a promising opportunity to participate in India’s renewable energy revolution. For investors with a medium to long-term horizon, it could be a strong addition to their portfolio
