">Solarworld Energy Solutions Ltd. is gearing up for its Initial Public Offering (IPO), offering investors a chance to partake in the burgeoning renewable energy sector. Set to launch between September 23 and September 25, 2025, this IPO will see its shares listed on both the BSE and NSE, marking a significant milestone for the company and potential investors. This comprehensive guide will walk you through the crucial details of Solarworld Energy Solutions Ltd. IPO, from issue specifics and financial performance to its market outlook.
Key IPO Details and Structure
The Solarworld Energy Solutions IPO features a face value of Rs. 5 per share, with an issue price band set between Rs. 333 and Rs. 351 per share. Investors will be able to bid for shares in lots of 42. This IPO is structured as a fresh capital-cum-offer for sale, involving a total of 1,39,60,113 shares, which aims to raise up to Rs. 490 crore. Out of this, 1,25,35,612 shares, amounting to Rs. 440 crore, constitute a fresh issue, while 14,24,501 shares, worth Rs. 50 crore, are offered for sale. The IPO follows a book-building process. Pre-issue, the company's shareholding stands at 7,41,37,042 shares, expected to increase to 8,66,72,654 shares post-issue. Nuvama Wealth Management Ltd. is serving as the book-running lead manager, with MUFG Intime India Pvt. Ltd. as the registrar for the issue.
Investor Categories and Lot Sizes
Different investor categories have specific bidding parameters. For retail investors, the minimum application is one lot of 42 shares, costing Rs. 14,742, with a maximum of 13 lots, totaling 546 shares for Rs. 1,91,646. Substantial HNI (S-HNI) investors can bid for a minimum of 14 lots (588 shares), amounting to Rs. 2,06,388, up to a maximum of 67 lots (2,814 shares) for Rs. 9,87,714. For big HNI (B-HNI) investors, the minimum application starts at 68 lots, equivalent to 2,856 shares, with a value of Rs. 10,02,456.
Important IPO Dates to Remember
The IPO opens on Tuesday, September 23, 2025, and concludes on Thursday, September 25, 2025. The tentative allotment of shares is anticipated on Friday, September 26, 2025. Following this, the initiation of refunds and the credit of shares to Demat accounts are both scheduled for Monday, September 29, 2025. The shares are tentatively expected to be listed on the stock exchanges on Tuesday, September 30, 2025. Investors are reminded that the cut-off time for UPI mandate confirmation is 5 PM on Thursday, September 25, 2025.
Grey Market Premium (GMP) and Listing Outlook
As of September 22, 2025, the Grey Market Premium (GMP) for Solarworld Energy Solutions IPO was ₹65. Considering the cap price of ₹351, the estimated listing price for the shares is projected to be around ₹416. This suggests an attractive potential listing gain of approximately 18.52% per share for investors, indicating a positive market sentiment leading up to the IPO.
About Solarworld Energy Solutions and its Promoters
Solarworld Energy Solutions Ltd. operates within the dynamic renewable energy sector, with a primary focus on the development, operation, and maintenance of solar power projects. The company is committed to fostering sustainable energy generation and expanding its market presence through strategic investments, notably the Pandhurana Project via its subsidiary, KSPL. The promoters of Solarworld Energy Solutions Ltd. include Kartik Teltia, Rishabh Jain, Mangal Chand Teltia, Sushil Kumar Jain, and Anita Jain. Collectively, they held a significant 78.70% of the company’s shares prior to the IPO.
Objectives Behind the IPO
The primary objectives for Solarworld Energy Solutions through this IPO are two-fold. A substantial portion of the net proceeds will be directed towards investing in its subsidiary, KSPL, to partially finance the establishment of the ambitious Pandhurana Project, which has an estimated cost of Rs. 575.30 crore. The remaining funds are earmarked for general corporate purposes, supporting the company's overall growth and operational needs.
Financial Performance at a Glance
Solarworld Energy Solutions Ltd. has demonstrated robust financial growth. For the fiscal year ending March 31, 2025, the company reported a 9% increase in total income, reaching Rs. 551.09 crore, up from Rs. 505.50 crore in FY2024. Profit after tax (PAT) saw an impressive surge of 49%, climbing to Rs. 77.05 crore from Rs. 51.69 crore in the previous year. EBITDA also rose significantly to Rs. 106.75 crore from Rs. 71.09 crore. The company's net worth substantially increased to Rs. 309.07 crore from Rs. 73.60 crore, with reserves and surplus standing at Rs. 272.00 crore, compared to Rs. 73.28 crore. Total assets expanded to Rs. 598.02 crore from Rs. 155.02 crore, although total borrowings also increased to Rs. 114.55 crore from Rs. 61.10 crore.
Peer Comparison and Market Positioning
In terms of valuation, Solarworld Energy Solutions Ltd. recorded an EPS of Rs. 10.68 and a NAV of Rs. 41.69. When compared to its listed peers in the renewable energy sector, its valuation appears moderate. It trades at a lower P/E than Sterling & Wilson (76.48) but is positioned higher than KPI Green (30.57) and Oriana Power (29.01). Waaree Renewable showcases strong performance with a Return on Net Worth (RoNW) of 65.29% and the highest Price-to-Book Value (P/BV) of 24.14. Oriana Power stands out with the highest EPS of Rs. 79.52 and NAV of Rs. 254.75. This comparison suggests that Solarworld offers a reasonably valued investment opportunity within its industry segment.
Strengths and Potential Risks
Solarworld Energy Solutions Ltd. boasts several competitive strengths, including a proven track record in delivering comprehensive solar EPC solutions through its robust in-house capabilities. The company maintains a solid financial performance, attributed in part to its asset-light business model, alongside strong customer relationships built on timely project delivery and high-quality standards. An experienced management team and skilled personnel further bolster its industry expertise. However, potential investors should also be aware of internal risks. These include the possibility of cost overruns, delays, or completion risks in installation and construction activities, which could adversely affect operations. A significant portion of its revenue (79.19% to 91.16% in recent fiscals) is derived from a key customer, SJVN Green Energy Limited, posing a risk if this relationship is impacted. Furthermore, the company may face challenges in accurately estimating costs for fixed-price EPC contracts, potentially increasing construction costs and working capital requirements.
The Solarworld Energy Solutions IPO presents an interesting opportunity in the renewable energy market, backed by solid financials and strategic growth plans. Potential investors are encouraged to conduct their own due diligence and consult financial advisors before making investment decisions.
