Saatvik Green Energy IPO: Weak Day 1 Demand and Sharp GMP Drop Test Investor Sentiment

Saatvik Green Energy Limited, a solar power solutions company, has launched its ₹900 crore IPO. The issue opened on September 19 and will close on September 23, 2025, in the price band of ₹442 to ₹465 per share, with a lot size of 32 shares. On Day 1, the subscription stood at just 0.59 times overall, with muted demand from Qualified Institutional Buyers (0.01x), retail investors (0.88x), and non-institutional buyers (0.66x).

The GMP, which had started at ₹65 before the IPO, slipped sharply to ₹32 by the end of Day 1. The fall in GMP reflects weakening market expectations of listing gains, even though the company operates in a high-growth sector. In this analysis, we look at the subscription trend, GMP signals, financials, strengths, and risks so you can understand the investor mood and fundamentals together.

IPO Overview

• IPO Date: September 19 to September 23, 2025
• Total Issue Size: ₹900 crore
• Price Band: ₹442 to ₹465 per share
• Lot Size: 32 Shares
• Tentative Allotment Date: September 24, 2025
• Listing Date: September 26, 2025 (Tentative)
• Subscription Status: 0.59x as of Day 1
• GMP: The GMP for Saatvik Green Energy IPO is ₹18, reflecting a 3.87% gain over the issue price, according to Chittorgarh.com (as of September 21).
  Disclaimer: GMP is an unofficial indicator and is subject to market volatility.

Highlight of Day 1 of the IPO

On Day 1, Saatvik Green Energy’s IPO was subscribed to only 0.59 times, led by retail investors at 0.88x, followed by NIIs at 0.66x, while QIBs showed negligible interest at 0.01x. The GMP fell sharply from ₹65 a day before the IPO to ₹32 on September 19. This drop indicates slowing listing expectations, with market participants reassessing the short-term upside despite the company’s long-term sector appeal.

What Does Saatvik Green Energy Do?

Saatvik Green Energy manufactures solar photovoltaic (PV) modules - these are panels that convert sunlight into electricity. Its main products are Mono PERC modules and N-TopCon solar modules (the latest and more efficient type), offered in both single-sided (mono-facial) and double-sided (bifacial) versions. These are used across homes, factories, utility projects, solar pumps, and open-access power setups.

Apart from making the modules, the company also offers end-to-end solar EPC (engineering, procurement, and construction) services and O&M (operations and maintenance). In simple words, Saatvik does the panel making, solar plant construction, and after-installation services all under one roof.

It has 3.8 GW of operational module capacity across three plants in Ambala, Haryana, and sells through 53 partners and 15 warehouses across India, in addition to exports in North America, Africa, and South Asia.

Objectives of the IPO

The IPO aims to raise ₹900 crore. Out of this:

• ₹200 crore is an Offer for Sale (OFS). This portion goes to selling shareholders Parmod Kumar (₹112 crore) and Sunila Garg (₹88 crore). The company gets nothing here.
• ₹10.82 crore to repay the company’s borrowings. As of June 2025, its own debt was ₹10.82 crore.
• ₹166.43 crore will go into its subsidiary to help it clear its loans.
• ₹477.23 crore will be used to build a new 4 GW solar module plant in Odisha.
• The rest will be spent on general corporate purposes - running costs, salaries, expansion, and other expenses.

Strengths:

• Fast revenue growth: Revenue grew from ₹609 crore in FY23 to ₹2,158 crore in FY25, a compounded annual growth rate of 88%.
• Profits are rising: Net profit increased from ₹4.7 crore to ₹213.9 crore during the same period.
• High returns on money: ROE of 63.4% in FY25 means that for every ₹100 invested by its shareholders, it earned ₹63.
• Improving financial health: Debt-to-equity dropped from 7.13x in FY23 to 1.36x in FY25.
• Integrated model: From manufacturing panels to EPC contracts to after-sales service - not all peers offer such a full package.
• Order book strength: At ₹5,077 crore, its order pipeline is more than 2.3x of its FY25 sales.

Risks:

• Customer dependence: Top 10 customers contribute nearly 58% of revenue, and the largest one alone accounts for around 17%. Losing them would hurt.
• China reliance: 42% of raw materials were imported from China in FY25. Any supply disruption or import duty rise can dent margins.
• High attrition: 17% of employees left in FY25, and historically, the turnover has been much higher. Skilled manpower churn is a risk for a tech-heavy business.
• Execution risk: The 4 GW Odisha capacity expansion is capital-intensive and vulnerable to delays, cost overruns, and approvals.
• Operational strain: It had overdue payments of ₹311 crore to creditors at the end of FY25, pointing to liquidity challenges.

For detailed information, visit Saatvik Green Energy’s IPO page.

Peer Comparison

The company’s listed peers are Waaree Energies and Premier Energies.

Source: RHP, internal calculations

Saatvik is much smaller in size compared to Waaree and Premier, but it is growing fast. Its ROE and ROCE are stronger than peers, but profitability margins are weaker. Valuation multiples (P/E and EV/EBITDA) are lower than peers - making it look cheaper on paper, but its higher leverage and smaller scale bring more risk.

IPO Valuation

At the upper price band, Saatvik Green Energy will be valued at about ₹5,910 crore. With a P/E ratio of 27.6x, it is priced comfortably below Waaree (55x) and Premier (50x). Its EV/EBITDA is 18.1x versus Waaree’s 34.7x and Premier’s 25.7x.

This positioning suggests Saatvik is offering itself at a discount compared to rivals, justified by its smaller size but supported by very high growth rates, strong demand for N-TopCon modules, and decent financial momentum.

Disclaimer: The P/E ratio here is calculated using the company’s post-IPO equity and its most recent FY25 net profits at the upper end of the price band.

The People Behind Saatvik Green Energy

The business is family-promoted but professionally run.

• Neelesh Garg, Chairman & MD, is an IIT Delhi graduate with a Master’s from the London School of Economics. He has been with Saatvik since 2015 and is seen as the architect of its strategy.
• Manik Garg, MD, is also from LSE and has gone through executive training from Harvard Business School. He focuses on finance and economics.
• Manavika Garg, Non-Executive Director, comes from an IT background and is part of the family promoters.
• Prashant Mathur, CEO, is a professional with over 21 years in renewables and brings sector experience beyond the promoters, signaling institutional strength.

This mix of promoter family involvement with a seasoned professional CEO gives Saatvik a balance between entrepreneurial drive and professional execution.

Industry Outlook

India has installed 116 GW of solar capacity as of June 2025, up from 2.6 GW in FY14. Government support through schemes like PM KUSUM and Surya Ghar Muft Bijli is driving new capacity additions. Annual solar additions are already over 20 GW and expected to accelerate.

Challenges remain, including dependence on imported solar cells, raw material price volatility, and execution risks for new capacity. Still, the direction is clear - India is moving towards large-scale solar adoption, and companies like Saatvik with advanced module technology are well-placed in this growth cycle.

Analyst View

Saatvik Green Energy’s IPO arrives at a time when India’s solar sector is expanding rapidly, and the company’s strong growth, healthy margins, and reasonable valuations vs peers are positives. The issue initially looked attractive on price, trading at a discount to other renewable peers.

However, the Day 1 response paints a cautious picture. With just 0.59x subscription and negligible QIB participation, large investors appear to be adopting a wait-and-watch approach. Retail demand was better but still below expectations. Compounding this, the GMP has halved from ₹65 pre-opening to ₹32 on Day 1, signaling reduced listing enthusiasm and possibly limited near-term gains.

For growth-focused investors, the fundamentals and long-term story remain compelling. But short-term sentiment is under pressure, and those seeking quick listing gains should be mindful of the weak grey market trend and tepid early demand.

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Disclaimer

Source: Saatvik Green Energy's RHP. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Please be informed that merely opening a trading and demat account will not guarantee investment in securities in the IPO. Investors are requested to do their own independent research and due diligence before investing in an IPO. Please read the SEBI-prescribed Combined Risk Disclosure Document prior to investing. This post is for general information and awareness purposes only and is nowhere to be considered as advice, recommendation, or solicitation of an offer to buy or sell, or subscribe for securities. INDstocks is acting as a distributor for non-broking products/services such as IPO, Mutual Fund, and Mutual Fund SIP. These are not exchange-traded products. All disputes with respect to the distribution activity would not have access to the Exchange investor redressal forum or the Arbitration mechanism. INDstocks Private Limited (formerly known as INDmoney Private Limited) does not provide any portfolio management services, nor is it an investment adviser. Logos above are the property of respective trademark owners, and by displaying them, INDstocks has no right, title, or interest in them. SEBI Stock Broking Registration No: INZ000305337, Trading and Clearing Member of NSE (90267, M70042) and BSE, BSE StarMF (6779), SEBI Depository Participant Reg. No. IN-DP-690-2022, Depository Participant ID: CDSL 12095500, Research Analyst Registration No. INH000018948 BSE RA Enlistment No. 6428.