Vikram Solar IPO Lists Flat: After Frenzied Demand, What’s Next for Investors?

Vikram Solar’s IPO made its market debut at ₹338 per share on NSE, clocking in a slim 1.8% listing gain over its issue price of ₹332. This flat start comes after one of the year’s most talked-about IPOs, with a massive 56.42 times overall subscription, led by powerful institutional and high-net-worth bidding. The tepid pop on Day 1 signals a cautious tone in the market despite robust demand and India’s heady solar ambitions. This blog breaks down what the listing really means for investors, given Vikram Solar’s finances, growth plans, and where it stands compared to its larger, cheaper peers.

IPO Overview

• IPO Date: August 19 to August 21, 2025
• Total Issue Size: ₹2,079.37 crore
• Price Band: ₹315 to ₹332 per share
• Lot Size: 45 shares per lot
• Tentative Allotment Date: August 22, 2025
• Listing Date: August 26, 2025 (Tentative). Check the live share price of Vikram Solar here.
• Subscription Status: The Vikram Solar IPO subscription closed at 56.42 times.

How Does Vikram Solar Make Money?

Vikram Solar makes the core hardware, solar PV modules, that are the working part of solar panels, turning sunlight into electricity. Started in 2009, it now sells these modules to big solar farm builders, rooftop integrators, companies, and homeowners. While exports once made up over half the business, as of FY25, nearly all (99%) of its sales are from India. The company’s vision is to move up the value chain, not only selling panels, but also making the solar cells inside them and getting into battery storage (BESS), which stores sunshine for when the sky is dark.

Objectives of the IPO

• Build a new mega solar factory: ₹769.73 crore for a 3,000 MW solar cell and 3,000 MW module unit in Tamil Nadu.
• Double module capacity: ₹595.21 crore to expand that same module plant up to 6,000 MW.
• The rest: General corporate use and letting some existing shareholders cash out.

Strengths:

• Tier-1 Reputation: Rated by BloombergNEF as a “Tier 1” solar module maker—meaning reliability and trust in big solar markets.
• Big Pending Orders: 10,340 MW in backlog, over twice their current yearly production, suggesting steady future business.
• Efficient Workforce: Revenue per employee around ₹1.3 crore, reflecting tight operational discipline.
• Expanding Product Line: Not stopping at panels, moving into solar cell making and battery storage for extra growth.
• Low Debt: Debt-to-equity ratio at 0.19, way below many competitors.
• Smart Locations: Factories close to ports, cutting both transport time and costs.

Risks:

• Customer Dependence: 77.5% of revenue from top 5 clients, lose one and things get tough.
• Heavy Import Need: 80.7% of key materials come from China and neighboring countries; any supply hiccup could squeeze margins.
• Exports Vanished: From 61.6% exports in FY24 to just 1% in FY25, they’re now mainly riding the Indian market wave.
• Financial Uncertainties: Ongoing disputes over ₹148.52 crore in duties and ₹84.39 crore in delayed payments flag some risk.
• Not Using Full Capacity: Factories have run at only 40-50% utilization in recent years.
• Solar Tech Moves Fast: If Vikram Solar fails to keep up with changing tech, sales and profits could take a hit.

For detailed information, visit Vikram Solar’s IPO page.

Peer Comparison

Vikram Solar’s listed industry peers include Waaree Energies, Premier Energies, and Websol Energy.

• Revenue: ₹3,423 Cr vs Waaree (₹14,445 Cr) and Premier (₹6,519 Cr). Smaller scale player.
• Margins: EBITDA margin 14.4% vs Waaree (21%), Premier (28.7%), Websol (44%). Lower profitability.
• Profit: ₹140 Cr vs Waaree ₹1,928 Cr and Premier ₹937 Cr. Again behind leader pack.
• ROCE: 24.5%—healthy, but lower than peers (Waaree 35%, Premier 41%).
• P/E Ratio: 72x—way higher than Waaree (46x), Premier (47x), Websol (40x). Valuation looks stretched.

*Market Share as per total solar panel capacity listed in MNRE’s approved manufacturers list | Source: RHP

IPO Valuation

With a P/E of 72.2 times at the upper price band of the IPO, Vikram Solar looks expensive compared to Waaree and Premier. This suggests the IPO is banking on future growth from its new factories and entry into solar cells + storage. Right now, it is smaller in scale and efficiency. So, investors are effectively paying upfront for tomorrow’s growth rather than today’s earnings power.

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.

Who’s Running Vikram Solar?

At the helm is Gyanesh Chaudhary, a solar industry veteran with 25+ years’ experience. Not just a business builder, he also helps shape India’s clean energy policy as a national energy committee co-chair and ESG leader in industry bodies. Trusted for his vision and strategy, Chaudhary has built a leadership team that blends deep solar expertise and finance muscle. Key figures like Krishna Kumar Maskara (finance and corporate law specialist), Neha Agrawal (strategy ace with an EY pedigree), and others in technology, manufacturing, sales, and HR make up a team both seasoned and adaptable. This mix of homegrown talent and industry outsiders gives Vikram Solar a balanced, progressive management, critical for a sector as dynamic as solar.

Industry Outlook

Solar power remains the brightest spot in India’s clean energy push. Module manufacturing capacity nears 89 GW, with demand poised to soar as India targets 150-170 GW new capacity this decade. Government incentives, like the ₹24,000 crore PLI scheme and mandatory domestic sourcing from 2026, give local makers like Vikram Solar a shot in the arm. Yet, competition is fierce, constant innovation and cost pressures keep everyone on their toes.

Who’s Making Money via the IPO OFS: Selling Shareholders

Promoters of Vikram Solar, Gyanesh Chaudhary is selling shares worth up to ₹199.2 crore in the offer for sale, making 179.5x returns on investment (considering the Weighted Average Share Acquisition Cost or Average Share Purchase Cost). The promoter entity, Vikram Capital Management Pvt Ltd, is cashing out with 39.1x gains amounting to ₹49.8 crore, while Anil Chaudhary (part of the promoter group) is selling shares worth ₹330.4 crore via the IPO.

Analyst View

Vikram Solar’s listing delivered only a modest 1.8% gain, a sharp contrast to the overwhelming IPO subscription frenzy. This outcome suggests that while long-term confidence in Indian renewables is strong, the market is wary about paying high prices for future potential rather than current performance. The company has a lot going for it, a giant order book, trusted “Tier 1” label, and low debt, yet faces headwinds: most business comes from just a handful of clients, exports have dried up, and margins lag behind rivals like Waaree or Premier Energies. At a P/E of over 72x, Vikram Solar trades at a premium to even these larger, more profitable competitors.

For investors wondering what to do next, the muted listing gain is a wake-up call to focus on fundamental progress, not just sector optimism. Any upside from here will depend on Vikram Solar’s execution, ramping up new factories, broadening its customer base, getting plants to run at higher capacity, and improving profit margins. Continued governmental incentives and India’s solar push are positives, but investors should watch closely for actual delivery on growth and financial improvement before expecting sustained returns. In short, patience, monitoring of quarterly performance, and clear-eyed risk assessment remain essential after the initial excitement fades.

How to Apply for an IPO on INDmoney?

1. Download the INDmoney app and complete your KYC.
2. Go to INDstocks → IPO, or just search “IPO”.
3. Tap on an IPO from the list of live IPOs.
4. View key details like price band, lot size, and dates.
5. Tap Apply Now and choose the number of lots.
6. Use INDpay UPI for instant mandate tracking.
7. Your funds will be blocked until the share allotment is finalized.

For a seamless application process, visit the INDmoney IPO page.

Disclaimer

Source: Vikram Solar'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.