Vikram Solar IPO: Can India's PV Leader Outshine its Peers?

India's solar story is shining brighter than ever.

In just over a decade, the country has leapt from a modest 2.6 GW of installed capacity in 2014 to an impressive 84.27 GW today-making it the world's 5th largest solar producer.

This isn't just about numbers; it's a reflection of India's commitment to cleaner energy, driven by supportive government policies, bold renewable targets, and massive investments.

For investors, the sector's growth has already rewarded early movers, but the expansion story is far from over. Rising demand, global supply chain shifts, and policy support are paving the way for new leaders.

Amid this focus on solar space, one name that has grabbed attention lately is the much-awaited Vikram Solar IPO.

About Vikram Solar

Vikram Solar is a solar photovoltaic module manufacturer with 16 years of experience.

Its primary business is to manufacture solar PV modules for use by customers across a range of industries. The company also provide EPC and O&M services.

Solar PV Modules

The company's product line features three main types of solar PV modules:

• p-type monocrystalline silicon-based Passivated Emitter and Rear Contact (PERC) modules
• n-type monocrystalline silicon (N-Type) modules
• n-type monocrystalline silicon-based Heterojunction Technology (HJT) modules

They are marketed under the Suryava, Paradea, and Hypersol brands to cater to different applications and customer requirements.

EPC

With over a decade of EPC experience, Vikram Solar has completed or is currently executing more than 200 solar projects across 19 states and two union territories, delivering a cumulative installed capacity of 1.41 GW as of 31 March 2025.

The EPC team oversees the entire project journey-from concept and design to commissioning, often using Vikram Solar's own modules to ensure quality and efficiency.

Rooftop

The company has delivered or is working on 214 rooftop solar projects for both public and private sector clients. Spread across multiple geographies and industries, these projects have a combined capacity of 114 MW.

O&M Services

Vikram Solar has built a strong O&M division dedicated to helping customers maximise the performance and lifespan of their solar assets.

These services, often bundled with EPC projects are provided through its affiliate, VSL Renewable Services Private Limited (formerly VP Utilities & Services Private Limited), and cover the complete lifecycle of a solar installation.

Over the years, the company has achieved several milestones.

What's Behind the Hype for This IPO?

• Vikram Solar has installed 4.5 GW of solar PV module manufacturing capacity and has an order book of 10,340.8 MW as of 31 March 2025.
• It was also among the first companies to execute a floating solar plant in India.
• The company's manufacturing units are fully automated, using high-quality equipment from Japan, Germany, the US, Switzerland, and China-countries recognised as global leaders in solar technology.
• Its presence spans 19 states and 2 union territories, backed by a rapidly expanding distributor and dealer network. Authorised distributors have grown from 41 on 30 September 2024 to 83 currently, while the dealer network has expanded from 64 to over 250 in the same period.
  
  The distribution strategy focuses on high-demand regions-Western, Northern, and Southern India-managed by regional cluster heads and territory managers to ensure deep market penetration.
• Internationally, Vikram Solar operates a sales office in the US and a procurement office in China, supplying solar PV modules to 39 countries as of 31 March 2025. Since its inception, it has shipped over 7.12 GW of solar PV modules globally (including India), with 3.37 GW shipped in the last three financial years alone.

IPO Details and Structure

Here are the key details of the upcoming offer...

Issue period: 19 August 2025 - 21 August 2025

Type of issue: Book-building

Price band: Rs 315 to Rs 332 per share

Face value: Re 10 per equity share

Lot size: 45 shares

Application limit: The minimum application size is one lot, priced at Rs 14,940, while investors can apply for up to 13 lots, amounting to Rs 194,220.

For small non-institutional investors applicants, the minimum investment is Rs 209,160 (14 lots). For big non-institutional investors, it is Rs 1,000,980 (67 lots).

IPO allotment date: 22 August 2025

Listing date: 26 August 2025

The IPO comprises a fresh issue of Rs 20.8 bn, comprising an issuance of 45 m shares, to raise Rs 15 bn, along with an offer for sale of 17.5 m shares, totaling Rs 5.8 bn.

JM Financial is serving as the book running lead manager, while MUFG Intime India Pvt. Ltd. is the registrar for the issue.

A Look at Financials

Vikram Solar's financial performance over the last three financial years shows a strong upward trajectory. Revenue has grown from Rs 20,732.3 million (m) in FY23 to Rs 34,234.5 m in FY25, a CAGR of 28.5%.

The EBITDA has more than doubled in this period, from Rs 1,861.8 m in FY23 to Rs 4,920.1 m in FY25.

The profit after tax (PAT) has surged even more from Rs 144.9 m in FY23 to Rs 1,398.3 m in FY25, a CAGR of 210.6%, driven by improved operational efficiency and scale.

The PAT margin improved from 0.7% to 4.1%, indicating stronger profitability and cost management.

Particulars (₹ in million)	FY23	FY24	FY25
Revenue	20,732.3	25,109.9	34,234.5
EBITDA	1,861.8	3,985.8	4,920.1
Profit After Tax	144.9	797.2	1,398.3
PAT Margin	0.7	3.2	4.1
Total Order book Quantity (MW)	2,786.9	4,376.2	10,340.8

Source: RHP Filing 12 August 2025

The company's order book has also ballooned from 2,786.9 MW to 10,340.8 MW, underscoring a robust demand pipeline.

Competitive Advantage

Vikram Solar benefits from strategically located facilities in the port cities of Tamil Nadu and West Bengal, providing significant cost and time efficiencies.

These locations facilitate smoother exports to international markets, helping the company expand its reach and attract a broader customer base.

Domestically, the company serves key customers directly for large-volume orders from 10 MW to 500 MW and above. Smaller retail orders are fulfilled through an extensive distribution network.

Under exclusive arrangements, distributors resell Vikram Solar's products to end customers, ensuring wide market coverage. Internationally, the company exports its solar PV modules to key global clients, further strengthening its presence and competitiveness in the global solar market.

Peer Comparison

This peer group is based on companies currently listed on the stock exchanges...

Name	Revenue (Rs million)	PE ratio	Basic EPS (Rs)	Return on Equity (%)	Net Asset Value per Equity Share (Rs) For FY25
Vikram Solar	34,595.3	-	4.6	11.3	39.2
Waaree Energies	148,460.6	45.8	68.2	20.1	334
Premier Energies	66,520.9	47.0	21.4	33.2	62.6
Websol Energy Systems	5,774.3	40.0	36.6	55.6	65.9

Data Source: RHP

Vikram Solar, with FY25 revenue of Rs 34,595.3 m, operates at a much smaller scale compared to its peers.

On the earnings too, Vikram Solar's Basic EPS stands at Rs 4.6, far below its peers.

The net asset value per share is Rs 39.2. This indicates that Vikram's balance sheet is smaller in per-share value terms, but it also points to potential room for expansion if the IPO proceeds are effectively deployed.

Overall, while Vikram Solar currently trails its larger and more profitable peers in scale and per-share earnings, its growing order book and expanding manufacturing capacity could help it close the gap in the coming years.

Strong Expansion Plan

At a pre-IPO event, Vikram Solar said that it will move forward with its plan to establish a 3-gigawatt (GW) solar module manufacturing facility in Colorado, USA.

This decision comes despite proposed regulatory measures from the Donald Trump administration that could weigh heavily on clean energy companies.

Earlier in 2025, the company had considered shelving the project after Trump's initial executive orders took effect.

But with US courts starting to strike down portions of those directives, Vikram Solar now sees a clearer path to making the Colorado facility a reality.

It also has plans for further expansion in the US.

Risk Factors

• Absence of long-term contracts with solar PV cell suppliers may increase operating costs due to raw material fluctuations.
• Operations are working capital-intensive, with high gross current assets (GCA) and extended debtor periods.
• Continued growth and revenue depend on scaling up installed capacity and cost-effective expansion of manufacturing facilities.

Vikram Solar IPO GMP Today

Vikram Solar IPO GMP today (13 August 2025) stands at +70, suggesting that the company's shares are trading at a premium of Rs 70 in the grey market, as per media reports.

Based on the upper end of the IPO price band and the prevailing grey market premium, the estimated listing price - Rs 402 per share - is about 21.08% higher than the IPO price of Rs 332.

The grey market premium reflects investors' willingness to pay above the issue price. It offers no guarantee of profits.

Conclusion

India is poised for a massive solar expansion, with 25-27 GW of new projects planned in FY26.

Between 2026 and 2030, an additional 28-30 GW of rooftop installations and substantial capacity additions across industrial, commercial, and residential segments are expected, making the sector's growth momentum undeniable.

Rising consumer awareness, improved financing options, and better grid access are set to further fuel demand, creating a strong tailwind for Vikram Solar.

Leveraging its extensive domestic distribution network and expanding manufacturing capacity, the company appears well-positioned to capture these opportunities.

It's always prudent to conduct thorough research before making any investment decisions. Ensure that the investment aligns with your financial objectives and matches your risk tolerance level.

For more information on IPOs, check out the list of upcoming IPOs.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...