Ahmedabad-based solar energy company Solarium Green Energy Limited is set to make its stock market debut with Rs 105.04 crore IPO.
Founded in 2015 by Ankit Garg, Solarium has set a price band of Rs 181 to Rs 191 per share for its IPO. At the upper end of the price band, the total issue size amounts to Rs 105.04 crore.
Solarium Green Energy is engaged in the design, engineering, procurement, construction and commissioning of solar power plants, including rooftop and ground-mounted. The company offers solar solutions to residential, government, commercial and industrial energy consumers.
The company is bootstrapped and plans to use the proceeds from the IPO to meet its working capital requirements and general corporate purposes.
As of December 2024, the company is managing 39 projects worth Rs 185 crore, of which revenue is recognized as Rs 45 crore in revenue till September 2024.
For the previous financial year (2023-24), Solarium Green Energy’s revenue was Rs 177.8 crore with a profit after tax of Rs 15.59 crore, and for the half year ended in September 2024, revenue was Rs. 82.34 crore.
Though the company is present in more than 10 Indian states, the revenue is concentrated in its home state. As per the red herring prospectus, in the last 4 financial years, more than 70 per cent of revenue was generated from Gujarat.
The company is set to take advantage of the Indian government’s world’s largest rooftop solar scheme, ‘PM Surya Ghar: Muft Bijli Yojana‘, launched in February 2024. The scheme offers incentives up to Rs. 78000 for a household to install rooftop solar panels.
PM Surya Ghar’s initiative has set a target to enable solar power to ten million households by 2027, which makes Solarium Green Energy a significant player.
Further, India has taken transformative steps in renewable energy capacity in the last ten years. India’s installed renewable capacity has surged by almost 200%, from 75.52 GW in 2014 to 220 GW.
As the country strives to achieve 500 GW of non-fossil fuel capacity by 2030, with an even more ambitious target of 1,800 GW by 2047, the solar energy sector has enormous potential.
While not all government steps have been proven conducive to Solarium Green Energy.
The company started as a manufacturer of polycrystalline solar modules from its factory in Gujarat. However, in February 2024, due to policy reforms by the government of India, it had to halt its manufacturing.
Since then, the company has focused on residential, business and government requirements, including rooftop solar installations and EPC (engineering, procurement, and construction).
Now, Solarium sources its solar panels from original equipment manufacturers (OEMs), including Navitas Solar Citizen Solar, and Sunvibe Electricals.
Solarium Green Energy competes with Mumbai-based Solar Square in the residential sector, which recently raised $40 Mn in a Series B funding round. Other competitors include Sunday Grids, Oorjan and Freyr Energy.
In business and government segments, Solarium competes with Gensol and Oriana Power.
Other details about the Solarium Green Energy Limited IPO
The IPO will open on February 6, with anchor bidding starting on February 5.
The company is offering 54,99,600 equity shares with a face value of Rs 10 each, at an issue price range of Rs 181 – Rs 191 per share.
At least 26,05,800 equity shares are reserved for qualified institutional buyers, 7,82,400 shares for high-net-worth individuals, at least 18,24,600 shares for retail individual investors, and up to 2,86,800 shares for market makers.
The promoters, Ankit Garg and Pankaj Vallabhbhai Gothi hold 68.4 per cent of the company.
This is the first IPO of a green company this year. If you want to know the green Indian companies that made their market debut last year. Read here.
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