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

A solar energy solutions provider specialising in EPC services for solar power projects- Solarworld Energy Solutions has fixed the price band in the range of Rs 333 to Rs 351 per equity share for its Rs 490-crore. The 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..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..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..ViewAt 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..Click on the attachment to read the full report:.Solarworld Energy Solutions IPO — Should You Bid? Read Anand Rathi's Report For Key Issue Details.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

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

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.

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