Solarworld Energy Solutions IPO Opens: 'Subscribe For Long-Term' Says Geojit — Check Issue Details

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Geojit Report

Solarworld Energy Solutions Ltd.'s launched its initial public offering on Sept. 23 and the offer closes for subscription on Sept. 25. A solar energy solutions provider specialising in EPC services for solar power projects has fixed the price band in the range of Rs 333 to Rs 351 per equity share.

Investors can place bids starting from a minimum of 42 shares and in multiples thereafter.

The Rs 490-crore IPO is a mix of fresh issuance of shares aggregating up to Rs 440 crore as well as an offer for sale of Rs 50 crore.

Nuvama Wealth Management Ltd., SBI Capital Markets Ltd. are the book-running lead managers for the public issue while MUFG Intime India Pvt. Ltd. is the registrar to the offer.

Purpose of IPO

The offer comprises a fresh issue of Rs 440 crore and an Offer-for-Sale (OFS) of Rs 50 crore.

Net proceeds will be used to partially fund a 1.2 GW TopCon solar cell and module manufacturing facility in Madhya Pradesh through its subsidiary, Kartik Solarworld Pvt Ltd (Rs 420 crore).

Key Risks

Over 79% of FY25 revenue came from a single client, SJVN Green Energy Ltd.

Key strategies:

• Invest in the manufacturing capabilities for solar modules, BESS and solar PV TopCon cell.

• Grow the customer base by diversifying into new geographies and maintain relationships with the key customers and other stakeholders • Exploring opportunities to expand the portfolio and scale the operations.

• Establish strong research and development capabilities to drive innovation and technological advancement.

View

At the upper price band of Rs 351, Solarworld Energy Solutions is valued at 39× FY25 PE, which appears reasonable given its robust financial performance.

While relatively smaller size of revenue, the company’s asset-light model, low leverage, and consistent profitability underscore its operational strength.

With backward integration, strategic expansion plans, and a focused EPC approach, Solarworld Energy Solutions is well-positioned in India’s solar sector.

Hence, we recommend a ‘Subscribe’ rating for long-term investors.

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