Vikram Solar IPO: Apply or Avoid for Listing Gains?
Vikram Solar IPO 2025, a ₹2,079 crore offering opening August 19, 2025, is a sizzling opportunity for investors chasing listing-day profits in India’s solar sector. With a 19% grey market premium (GMP) and plans to scale to 20.5 GW by FY27, this PV module leader is riding high on renewable energy hype. But with a steep 86x P/E and competitive risks, is it a quick-profit slam dunk or a risky flip? Dive into the numbers, fund uses, and peer comparisons to decide if this IPO is your ticket to gains on August 26, 2025.
What Vikram Solar Brings to the Table
Vikram Solar produces 4.5 gigawatts (GW) of solar photovoltaic (PV) modules annually from plants in West Bengal and Tamil Nadu. It’s aiming for 15.5 GW by FY26 and 20.5 GW by FY27, with a 12 GW solar cell facility to reduce import reliance. It’s also entering battery storage with a 1 GWh plant in Tamil Nadu, scaling to 5 GWh by FY27. With 2.85 GW under the Approved List of Models and Manufacturers (ALMM), it’s a go-to for government projects, serving clients like NTPC and Adani Green.
What Vikram Solar Brings to the Table
Vikram Solar produces 4.5 gigawatts (GW) of solar photovoltaic (PV) modules annually from plants in West Bengal and Tamil Nadu. It’s aiming for 15.5 GW by FY26 and 20.5 GW by FY27, with a 12 GW solar cell facility to reduce import reliance. It’s also entering battery storage with a 1 GWh plant in Tamil Nadu, scaling to 5 GWh by FY27. With 2.85 GW under the Approved List of Models and Manufacturers (ALMM), it’s a go-to for government projects, serving clients like NTPC and Adani Green.
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The IPO Lowdown
- Size: ₹2,079 crore (₹1,500 crore fresh issue + ₹579 crore offer for sale of 1.74 crore shares).
- Price Band: ₹315-₹332 per share.
- Dates: August 19-21, 2025.
- Listing: BSE, NSE, expected August 26, 2025.
- Use of Funds:
- ₹770 crore for Phase-I: 3 GW solar cell + 3 GW module plant in Tamil Nadu.
- ₹595 crore for Phase-II: Expanding module capacity to 6 GW.
- Balance for general corporate purposes (e.g., marketing, operations).
- Valuation: At ₹332, priced at 4.4x book value and 86x FY25 earnings (P/E), vs. peers’ median P/E of 38.5x and P/B of 13.3x.
Financials: Growth Meets High Valuation
Vikram Solar’s financials show strong growth but a premium valuation for listing gain hunters:
- Revenue: Up 28.5% yearly from ₹2,073 crore (FY23) to ₹3,423 crore (FY25).
- Profit After Tax (PAT): Surged 210.6% annually from ₹14 crore (FY23) to ₹140 crore (FY25).
- EBIT: Grew 65.8% yearly to ₹336 crore (FY25).
- Debt: Dropped from ₹854 crore (FY24) to ₹272 crore (FY25), with a debt-to-equity ratio of 0.2.
- Key Ratios: FY25 ROE: 16.6%, ROCE: 24.5%, EBITDA margin: 14.4% (vs. peers’ 21-29%).
| Financial Snapshot | FY23 | FY24 | FY25 | 2Y CAGR |
|---|---|---|---|---|
| Revenue (₹ crore) | 2,073 | 2,511 | 3,423 | 28.5% |
| EBIT (₹ crore) | 122 | 261 | 336 | 65.8% |
| PAT (₹ crore) | 14 | 80 | 140 | 210.6% |
| Debt (₹ crore) | 792 | 854 | 272 | -41.4% |
| Net Worth (₹ crore) | 365 | 445 | 1,242 | 84.4% |
| Key Ratios (FY25) | Value |
|---|---|
| ROE (%) | 16.6 |
| ROCE (%) | 24.5 |
| EBITDA Margin (%) | 14.4 |
| Debt-to-Equity | 0.2 |
Peer Comparison: How Vikram Stacks Up
Vikram Solar competes with Waaree Energies, Premier Energies, and Websol Energy System in India’s solar PV module market. Here’s a FY25 trailing twelve months (TTM) comparison:
| Metric | Vikram Solar | Waaree Energies | Premier Energies | Websol Energy |
|---|---|---|---|---|
| Installed Capacity (GW) | 4.5 | 15.0 | 5.1 | 0.55 |
| Order Book (GW) | 10.3 | 25.0 | 5.3 | N/A |
| Revenue (₹ crore) | 3,423 | 14,444 | 6,519 | N/A |
| EBITDA Margin (%) | 14.4 | 21.0 | 28.8 | 44.2 |
| PAT Margin (%) | 4.1 | 13.4 | 14.1 | 26.9 |
| ROCE (%) | 24.5 | 35.1 | 41.5 | 59.2 |
| Debt-to-Equity | 0.2 | 0.13 | 0.69 | 0.55 |
| P/E (x) | 86.0 | 37.3 | 42.4 | 29.6 |
| Price-to-Book (x) | 4.4 | 8.66 | 15.8 | 21.2 |
Insights:
- Scale: Waaree leads with 15 GW capacity and a 25 GW order book, outpacing Vikram’s 4.5 GW and 10.3 GW. Premier slightly edges Vikram (5.1 GW), while Websol lags at 0.55 GW.
- Profitability: Vikram’s 14.4% EBITDA and 4.1% PAT margins trail Waaree (21%, 13.4%) and Premier (28.8%, 14.1%). Websol’s niche focus yields a high 44.2% EBITDA but limited scale.
- Valuation: Vikram’s 86x P/E is steep vs. Waaree (37.3x), Premier (42.4x), and Websol (29.6x), reflecting high growth expectations.
- Debt: Vikram’s 0.2 debt-to-equity ratio beats Premier (0.69) and Websol (0.55), with Waaree slightly better at 0.13.
Vikram’s strong order book and low debt are draws, but weaker margins and a high P/E could temper listing gains compared to peers.
Why It Could Pop at Listing
- Order Book: A 10.3 GW backlog (2x current capacity) with clients like NTPC and Adani Green fuels investor hype.
- Market Buzz: A 19% GMP suggests listing gains of ₹60-₹63 per share (₹392 expected listing price at ₹332), per IPOWatch (August 2025).
- Solar Hype: India’s renewable push and ALMM/PLI incentives drive oversubscription potential for best IPOs August 2025.
- Strategic Moves: Solar cell integration and battery storage add appeal for IPO flippers.
Risks That Could Dim Gains
- High Valuation: An 86x P/E (vs. peers’ 38.5x median) could cap upside if sentiment shifts.
- Thin Margins: 14.4% EBITDA lags peers, signaling weaker pricing power.
- Import Reliance: 80% of raw materials from China/Southeast Asia expose it to trade disruptions.
- Customer Concentration: Top 10 clients drive 89% of FY25 revenue (top five: 75%), risking volatility.
- Liabilities: ₹258 crore in contingent liabilities (21% of net worth) could spook investors post-listing.
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Should You Apply for Listing Gains?
Vikram Solar’s IPO is riding high on India’s renewable energy wave, with a 19% GMP pointing to listing gains of ~₹60 per share (₹392 expected listing price at ₹332 band). Its 10.3 GW order book and expansion plans fuel investor buzz, making it a strong flip candidate for short-term players. But the 86x P/E and thin margins suggest caution—oversubscription could drive a pop, but a post-listing dip is possible if valuations don’t hold.
FAQs (Frequently Asked Questions)
- What is the expected listing price for Vikram Solar IPO 2025?
With a 19% GMP, the IPO could list at ₹375-₹395 per share (₹315-₹332 price band + ₹60-₹63 premium), offering potential listing gains, per IPOWatch (August 2025). - How does Vikram Solar’s valuation compare to peers?
Vikram’s 86x P/E is higher than Waaree Energies (37.3x) and Premier Energies (42.4x), but its 4.4x P/B is lower than peers’ 13.3x median, making it a mixed bag for value seekers. - What are the main uses of IPO funds?
Vikram Solar will use ₹770 crore for a 3 GW solar cell and module plant (Phase-I), ₹595 crore to expand module capacity to 6 GW (Phase-II), and the rest for marketing and operations. - Is Vikram Solar IPO a good bet for listing gains?
The 19% GMP and solar sector buzz suggest a strong listing pop, but the high 86x P/E and 14.4% EBITDA margin (vs. peers’ 21-29%) could lead to a post-listing dip if hype fades. - How can I track Vikram Solar IPO’s performance?
Check GMP and allotment status on platforms like Zerodha, IPOWatch, or Chittorgarh, and monitor listing performance on BSE/NSE on August 26, 2025.
Disclaimer :-This is for educational purposes only. Views are from cited sources, not this publication. Investing involves risks, including potential loss of principal. Consult a financial advisor before deciding. Past performance doesn’t guarantee future results.
