Solarium Green Energy, a turnkey solar solutions provider, is set to launch its Small and Medium Enterprise (SME) initial public offering (IPO) on February 6, 2025. The company aims to raise ₹105.04 crore through the issuance of 55 lakh equity shares, each with a face value of ₹10. The price band for the IPO is set between ₹181 and ₹191 per share.
IPO Details
- Issue Period: The IPO will be open for subscription from February 6 to February 10, 2025.
- Lot Size: Investors can bid in lots of 600 shares, requiring a minimum investment of ₹1,14,600. High Net-Worth Individuals (HNIs) must invest in a minimum of two lots, totaling 1,200 shares at ₹2,29,200.
- Allocation:
- Qualified Institutional Buyers (QIBs): 26,05,000 shares (46% of the issue).
- HNIs: 7,82,400 shares.
- Retail Investors: Approximately 33.17% of the issue.
- Market Makers: 2,86,800 shares.
- Listing: The shares are scheduled to be listed on the BSE SME platform on February 13, 2025.
Use of Proceeds
The funds raised will be utilized to meet working capital requirements and for general corporate purposes.
Company Overview
Founded by Ankit Garg, an alumnus of the Indian School of Mines, Dhanbad, Solarium Green Energy specializes in providing turnkey solar solutions. The company's services encompass design, engineering, procurement, testing, installation, commissioning, and comprehensive operation and maintenance. Between April 2021 and September 2024, Solarium executed 11,195 residential rooftop projects, 172 commercial and industrial projects, and 17 government projects.
Financial Performance
In the fiscal year ending March 2024, Solarium reported:
- Revenue: ₹177.80 crore.
- Net Profit: ₹15.59 crore.
For the first half of FY25, the company achieved:
- Revenue: ₹81.99 crore.
- Net Profit: ₹7.55 crore.
Our Opinion on the News
Solarium Green Energy's decision to enter the capital markets with a ₹105 crore IPO reflects strong growth momentum in India's renewable energy sector. The company's established track record in solar solutions, combined with a profitable business model, makes it an attractive prospect for investors. However, given the volatility in the SME segment, potential investors should evaluate market conditions and long-term sustainability before committing to this offering.