Fujiyama Power Systems Files Draft Papers For IPO With Fresh Issue Worth Rs 700 Crore

Electrical equipment manufacturer Fujiyama Power Systems Ltd. filed its preliminary papers for its initial public offering on Dec. 28. The IPO is a fresh issue of shares aggregating to Rs 700 crore, with an offer-for-sale segment of two crore shares. The expected launch date of the offer is yet to be announced.

Promoters of the company include Pavan Kumar Garg, Yogesh Dua and Sunil Kumar. Pavan Kumar Garg is offloading one crore shares, and Yogesh Dua is offloading the remaining one crore shares.

The company plans to utilise the proceeds from the fresh issue of shares for financing the cost of establishing a manufacturing facility in Madhya Pradesh's Ratlam, repayment of outstanding borrowings availed by the company, and general corporate purposes.

Motilal Oswal Investment Advisors Ltd. and SBI Capital Markets Ltd. are the lead book-runners of the issue, whereas Link Intime India Pvt. Ltd. is the registrar for the issue.

Fujiyama Power Systems is a manufacturer of products and solutions in the roof-top solar industry, including on-grid, off-grid and hybrid solar systems, covering solar panel manufacturing, solar inverter manufacturing (covering on-grid, hybrid, and off-grid solutions), and both lead acid and lithium-ion battery production.

Additionally, they support R&D capabilities in inverter technology and provide a wide variety of solar SKUs. Their brands consist of 'UTL Solar', which has a legacy of 28 years, and 'Fujiyama Solar'.

They have three manufacturing facilities and R&D capabilities domestically, and with a consistent focus on technological development and product innovation.

Fujiyama Power Systems' listed peers include Waaree Energies Ltd., Premier Energies Ltd., Exicom Tele-Systems Ltd., and Insolation Energy Ltd.

For the six months ended September, Fujiyama clocked a net profit of Rs 75.1 crore against revenue of Rs 721.7 crore. The company's bottom-line print stood at Rs 45.3 crore for the fiscal ended March 2024, against a topline of Rs 924.7 crore. As of Nov. 30, 2024, the company's debt pile stood at Rs 311.3 crore.