Vikram Solar IPO: Latest GMP Indicates Nearly 20% Listing Gains Ahead Of Opening Tomorrow

Vikram Solar Ltd. is set to launch its initial public offering (IPO) to raise over Rs 2,000 crore from the primary market.

The company is a leading solar energy solutions provider. Ahead of the launch, the grey market premium (GMP) for the Vikram Solar IPO indicated a premium of nearly 20% over the upper limit of the issue price band. 

Those who want to bid for shares in the IPO can check the following details before deciding to invest.

According to InvestorGain, the GMP for Vikram Solar IPO stood at Rs 65 as of 10.30 a.m. on Aug. 18. The latest GMP indicates a listing price of Rs 397 per share at a premium of 19.58%, compared to the upper limit of the IPO price band. 

Note: GMP does not represent official data and is based on speculation.

Vikram Solar IPO is a book-build issue worth Rs 2,079.37 crore. The mainboard IPO comprises a fresh issue of 4.52 crore shares, amounting to Rs 1,500 crore and an offer-for-sale (OFS) of 1.75 crore shares, aggregating to Rs 579.37 crore.

The IPO price band has been fixed between Rs 315 and Rs 332 per share.

To participate in the IPO, retail investors need to bid for a single lot size of 45 shares, requiring an investment of Rs 14,175. Small Non-Institutional Investors can apply for at least 14 lots, amounting to an investment of Rs 2,09,160. Big Non-Institutional Investors can participate in the IPO by bidding for a minimum of 67 lots. It will lead to a minimum investment of Rs 10,00,980.

Investors can participate in the IPO from Aug. 19 to Aug. 21. Allotment of shares is proposed to be finalised on Aug. 22. The company will transfer shares to the demat accounts of successful bidders on Aug. 25 and refunds to non-allottees will be done on the same day. 

Shares of Vikram Solar are tentatively scheduled to be listed on the BSE and NSE on Aug. 26.

Qualified Institutional Buyers (QIBs) will be offered a maximum of 50% of the net issue. Retail investors will be allocated at least 35% of the net offer and the remaining 15% will be reserved for Non-Institutional Investors (NIIs). 

JM Financial is the book-running lead manager and MUFG Intime India is the registrar for the IPO.

The company will use proceeds from the IPO to fund capital expenditure and for general corporate purposes.

Vikram Solar is one of the largest manufacturers of solar panels in India. It also provides engineering, procurement, and construction (EPC) services for solar projects.

The company reported a 75.4% year-on-year (YoY) increase in profit after tax (PAT) at Rs 139.83 crore in FY25, compared to Rs 79.72 crore in FY24. Total income rose 37.1% YoY to Rs 3,459.53 crore in FY25 from Rs 2,523.96 crore in the preceding fiscal. Total debt dropped 71.5% YoY to Rs 230.67 crore in FY25 from Rs 808.33 crore in FY24.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.