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Vikram Solar Sets IPO Price Band at Rs 315-332, 14% Below Unlisted Valuation

Swarnadwip Nath Published Aug 13, 2025, 05:14 PM Updated Sep 16, 2026, 03:46 AM

Vikram Solar, a leading Kolkata-based solar photovoltaic (PV) module manufacturer, has announced the price band for its much-anticipated Initial Public Offering (IPO), setting it in the range of Rs 315 to Rs 332 per equity share. This decision reflects a pricing approximately 14% lower than the p...

Key Highlights of the Vikram Solar IPO

Price Band: Rs 315 to Rs 332 per share, representing nearly 14% discount to the unlisted share price of Rs 385.
Market Capitalization: At the upper limit of Rs 332, the company’s valuation would stand around Rs 14,190 crore.
IPO Size: The total issue size is approximately Rs 2,079 crore, comprising a fresh issue worth Rs 1,500 crore and an offer for sale (OFS) of about Rs 579 crore by promoters.
Share Offerings: The fresh equity comprises 45.2 million shares, while the OFS includes 17.45 million shares by promoters such as Gyanesh Chaudhary, Vikram Capital Management, and Anil Chaudhary.
Subscription Dates: The IPO opens on August 19, 2025, and closes on August 21, 2025, with the anchor book opening a day earlier on August 18.
Listing: The share allotment is slated for August 22, and listing on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) is expected on August 26, 2025.
Investor Quotas: The IPO allocates up to 50% to Qualified Institutional Buyers (QIBs), 35% to retail investors, and 15% to non-institutional investors (NIIs).
Lot Size: Investors can bid for a minimum of 45 equity shares, and in multiples thereof.

Business and Financial Context

Founded in 2009, Vikram Solar has rapidly scaled operations, expanding its solar PV module manufacturing capacity from an initial 12 MW to a robust 4.5 GW. The company is prominently listed on the Ministry of New & Renewable Energy's Approved List of Modules and Manufacturers, with an enlisted capacity of 2.85 GW as of June 2025.

With manufacturing locations in West Bengal and Tamil Nadu, including solar cell production units in Gangaikondan, Tamil Nadu, Vikram Solar has built a pan-India presence servicing 19 states and two union territories. Its customer base includes major government entities like NTPC, Neyveli Lignite Corporation, Gujarat Industries Power Company, and private independent power producers such as ACME Cleantech Solutions, Adani Green Energy, and Azure Power India.

Financially, the company reported a 36% increase in revenue from operations to Rs 3,423 crore in fiscal 2025 from Rs 2,511 crore the previous year. Net profit after tax grew 75% to Rs 140 crore in the same timeframe, demonstrating strong margin expansion and operational efficiency.

Strategic Implications of Pricing

The decision to price the IPO below the unlisted valuation echoes a growing trend seen in recent public issues where companies such as Tata Technologies, AGS Transact, and others have taken similar pricing approaches. This can serve to attract a wider base of investors by offering a margin of safety and adjusting to market sentiments especially after unlisted share prices have corrected from previous highs.

Since early June, Vikram Solar’s unlisted share price has corrected from Rs 475 to Rs 385, influenced by broader market adjustments and comparable valuations in the renewable sector.

Outlook and Market Reception

Investor anticipation revolves around the company’s ability to capitalize on India’s ambitious renewable energy targets and its established manufacturing scale. The infusion of fresh capital through this IPO is expected to fund capital expenditures, including investments in its wholly owned subsidiary VSL Green Power Private Ltd, focusing on expanding production capacity and technological enhancements.

Vikram Solar’s price-to-earnings ratios stand at 68.48 to 72.17 times FY25 earnings, higher than the peer average P/E of 44.28, indicating market confidence in its growth trajectory, albeit at a premium.

Conclusion

Vikram Solar’s IPO, opening on August 19, 2025, with a price band set at Rs 315-332 per share, marks a critical milestone for one of India’s foremost photovoltaic module manufacturers. The 14% discount to unlisted valuations and the comprehensive offering is expected to attract diverse investor participation. The company’s robust revenue growth, expanding operational footprint, and strong customer profile position it well to support India’s clean energy initiatives and deliver long-term shareholder value.

Source: MoneyControl, Business Standard, Economic Times, PTI

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