Vikram Solar IPO Sees 1.57 Times Subscription on Day 1

The Vikram Solar IPO has received a strong response from investors, with a subscription of 1.57x by the end of Day 1. The company is offering shares at a price of Rs. 332 per share, with a minimum lot size of 45 shares. The issue size stands at Rs. 2,079.37 crore, comprising the offer for sale and fresh issue. Stay tuned for the latest updates on the Vikram Solar IPO subscription status as the offering progresses.

Vikram Solar IPO Subscription Status - Day 1

The Vikram Solar IPO was subscribed 1.57 times overall by the end of Day 1, with Retail Investors at 1.43 times, Non-Institutional Investors (NIIs) with a demand at 3.99 times, and Qualified Institutional Buyers (QIBs) at 0.02 times.

Last updated: 05:04 PM, Tuesday, 19 Aug 2025

Company Overview of the Vikram Solar IPO

Vikram Solar Limited is a leading Indian manufacturer of solar photovoltaic (PV) modules with over 17 years of industry experience. As of March 31, 2025, the company's operational capacity makes it one of India's largest solar PV module manufacturers. The company's manufacturing facilities in West Bengal and Tamil Nadu have an installed capacity of 4.50 GW. Vikram Solar is a "pure play" module manufacturer and has an enlisted capacity of 2.85 GW on the Ministry of New & Renewable Energy's Approved List of Modules and Manufacturers (ALMM) as of June 30, 2025. The company has been recognised as a Tier 1 solar PV module manufacturer by BloombergNEF with its latest inclusion in the first quarter of 2025.

The company's product portfolio includes high-efficiency solar PV modules like p-type monocrystalline silicon-based Passivated Emitter and Rear Contact (PERC), n-type monocrystalline silicon (N-Type), and n-type monocrystalline silicon-based heterojunction technology (HJT) modules. These modules are available in bifacial or monofacial designs. The latest generation of these modules has wattages ranging from 395 Wp to 735 Wp, with efficiencies from 20.23% to 23.66%.

To meet growing demand, Vikram Solar is undertaking expansion plans that are expected to increase its installed solar PV module manufacturing capacity to 15.50 GW by fiscal year 2026 and 20.50 GW by fiscal year 2027. The company also plans to backward integrate into the solar value chain by establishing a solar cell manufacturing facility with two units, 3.00 GW and 9.00 GW, in Tamil Nadu by fiscal year 2027. Additionally, the company plans to start a greenfield project for battery energy storage systems (BESS) with an initial capacity of 1.00 GWh, expandable to 5.00 GWh, in Tamil Nadu by fiscal year 2027.

Strengths and Risks of Vikram Solar IPO

Let’s dive into the strengths and risks to assess if the Vikram Solar IPO is good or bad for investors

Strengths: 

• Leading Market Position: As of March 31, 2025, Vikram Solar is one of India’s largest manufacturers of solar PV modules by operational capacity, with a total installed manufacturing capacity of 4.50 GW across its two facilities. The company has over 17 years of industry experience.

• Strategic Expansion and Backward Integration: The company is undergoing significant expansion, aiming to increase its solar PV module manufacturing capacity to 20.50 GW by Fiscal 2027. A key part of this strategy is backward integration, with plans to establish a 12.00 GW solar cell manufacturing facility in Tamil Nadu by fiscal year 2027.

• Focus on Technology and Quality: Vikram Solar has a strong emphasis on research and development and quality control (QC), which is reflected in its high-efficiency products. The company's R&D lab in Falta, West Bengal, was accredited by the NABL in 2023, making it the second solar company in India and the first in Eastern India to achieve this recognition.

• Diversified Market Presence: The company has a widespread domestic presence across 19 states and two union territories through an extensive network of 83 authorised distributors and over 250 dealers. Globally, it has a sales office in the United States and a procurement office in China, having supplied modules to customers in 39 countries as of March 31, 2025.

• Robust Financial Performance: Vikram Solar has shown consistent improvement in its key financial metrics, such as a 28.50% CAGR in revenue from operations from fiscal 2023 to fiscal 2025 and a 62.56% CAGR in EBITDA over the same period.

• Commitment to ESG: The company is one of four Indian companies in the alternative energy sector to have a net-zero commitment endorsed by the UN Global Compact. It also received the "Platinum Medal" from EcoVadis in May 2025, ranking in the top 1% of organisations globally.

Risks:

• Dependence on a Few Customers: The company has a high concentration of revenue from its top customers. As of Fiscal 2025, 77.50% of revenue came from its top five customers, and 88.72% came from its top ten customers. Losing any of these key customers could have a significant negative impact on the business.

• Project-related Risks: A majority of the IPO proceeds are planned for new manufacturing facilities (Phase I and Phase II) in Tamil Nadu. The success of these projects depends on securing timely regulatory approvals and managing potential delays and cost overruns. For example, a previous facility experienced a six-month delay and cost overrun of Rs 67.95 crore due to travel restrictions for foreign technicians.

• Dependency on Imported Raw Materials: A significant portion of the company’s raw materials, primarily solar PV cells, is imported. In Fiscal Year 2025, 80.68% of the cost of imported raw materials was from China, East Asia, and Southeast Asian countries. Any restrictions on imports from these countries could adversely affect business prospects and financial performance.

• Auditor Observations and Financial Risks: The company's statutory auditor has included emphasis of matter paragraphs in their reports for fiscal 2023, 2024, and 2025, concerning a safeguard duty claim of Rs 148.52 crore considered as receivable and disputed trade receivables of Rs 84.38 crore as of fiscal 2025. If these matters are not resolved favourably, it could adversely affect the company's financial condition.

• Reliance on Government Policies: The solar energy industry heavily relies on government subsidies and incentives. A reduction or removal of these policies could decrease demand for solar modules, negatively impacting the company’s revenue and financial condition. For instance, a change in basic customs duty on solar cells and modules could affect costs.

• Intense Competition: The company operates in a highly competitive market against both domestic and global players. Competitors may have greater financial resources, which could give them an advantage in terms of economies of scale and purchasing raw materials at lower prices.

Vikram Solar IPO Details

• IPO Date: August 19, 2025 to August 21, 2025

• Issue Price: Rs. 332 per share (Higher Band)

• Lot Size: 45 shares

• Total Issue Size: 6,26,31,604 shares (aggregating up to Rs. 2,079.37 crore)

• Tentative Allotment Date: August 22, 2025

• Tentative Listing Date: August 26, 2025

How to Apply for Vikram Solar IPO

• Visit the Rupeezy app or Rupeezy DOCK.

• Navigate to the IPO section on the Home Page

• Here, you can view all the IPOs with details such as market lot, minimum bid quantity, price range, and analysis.

• You can read the Red Herring Prospectus for the issue details.

• Click on Apply.

• Enter your UPI ID for payment & place the bid.

• While placing the bid, enter the cutoff price or desired price in the range specified. Select quantity as per lot size. 

• Submit to complete the order.