Saatvik Green Energy IPO: Issue Details, Listing Date, Financials, Risks And More— Read Angel One's Report

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Angel One Report

Saatvik Green Energy Ltd.'s initial public offering will open for subscription on Sep. 19 and the offer closes on Sep. 23.

Saatvik Green Energy is raising Rs 900-crore through its initial public offering, comprising an offer for sale of Rs 200-crore and a fresh issue of Rs 700-crore; the proceeds are proposed to be utilized for prepayment or scheduled repayment of certain outstanding borrowings (Rs 10.82-crore), investment in wholly owned subsidiary Saatvik Solar Industries Pvt. Ltd. for repayment/prepayment of its borrowings (Rs 166.44 crore), investment in the subsidiary for setting up a 4 GW solar PV module manufacturing facility in Odisha (Rs 477.23 crore), and the balance for general corporate purposes.

The manufacturer of solar photovoltaic modules in India and integrated solar project solution provider has fixed the price band in the range of Rs 442 to Rs 465 per equity share. At the upper price band of Rs 465, the IPO values Saatvik Green Energy at a post-issue P/E of 27.6x.

Given its leadership in India’s growing solar module manufacturing sector and favorable government policies supporting renewable energy adoption, the company appears undervalued and we recommend subscribing to the issue for the long term investors.

DAM Capital Advisors Ltd. Ambit Private Ltd., Motilal Oswal Investment Advisors Ltd. are the book-running lead managers for the public issue.

The shares will be listed on both the National Stock Exchange and the BSE on Sep 26 .

Company Outlook

Saatvik Green Energy reported FY25 revenue of Rs 2,158.39 crore, up 98.39% YoY, with Ebitda of Rs 353.93 crore, net profit of Rs 213.93 crore, up 113% YoY; Ebitda and net margins of 16.4% and 9.9% respectively, ROE of 63.4%, ROCE of 60.5%, debt-to-equity of 1.36x, reflecting strong profitability and improved leverage."

Key Risks

Saatvik Green Energy faces key risks including high customer concentration, project execution and stabilization delays.

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