The renewable energy sector in India has been growing quickly, and everyone is now looking forward to the Vikram Solar IPO. The business wants to raise roughly ₹2,079 crore, with ₹1,500 crore coming from a new issue to help pay for its big development projects. It is one of the country’s well-known solar PV module makers. But the key question is whether this issue will be good for investors or if they should be more careful.
Key IPO Details
| Particulars | Details |
|---|---|
| IPO Size | ₹2,079 crore |
| Fresh Issue | ₹1,500 crore |
| Issue Opens | August 19, 2025 |
| Issue Closes | August 21, 2025 |
| Use of Proceeds | Partly funding 3 GW solar cell + 3 GW solar module facility |
| Current Capacity | 4.5 GW |
| Planned Capacity | 20.5 GW by FY27 |
| Major Clients | NTPC, JSW Energy, Adani Green, PureSky, Sundog Solar |
| Valuation | ~86x FY25 earnings (premium to peers) |
Business Snapshot
Vikram Solar has two ideally placed plants in Kolkata and Chennai. These plants give the company easy access to markets in both India and other countries. The company has built a large network in the United States, with more than 250 dealers and more than 83 wholesalers.
It sells advanced solar technologies like PERC, N-Type, and HJT modules. Their efficiencies will rise from 17.5% in 2016 to 23.7% in 2025, which shows that they are making good progress in research and development (R&D).
Financial Performance at a Glance
| Metric | FY23 | FY25 | Trend |
|---|---|---|---|
| Production Volume (GW) | 0.42 | 1.28 | 3x growth |
| Revenue (₹ Cr) | ~1,200 | ~3,400 | Rapid scale-up |
| Operating Margin | 9% | 14.4% | Improving |
| Exports (₹ Cr) | 1,546 (FY24) | Negligible (FY25) | Volatile |
| Revenue Mix | 97-98% modules, 2-3% EPC/O&M | Highly concentrated |
Expansion Plans
| Area | Current | Target by FY27 | Remarks |
|---|---|---|---|
| Solar Module Capacity | 4.5 GW | 20.5 GW | Aggressive scale-up |
| Solar Cell Facility | 0 | 12 GW (Tamil Nadu) | Backward integration |
| Battery Storage (BESS) | 0 | 5 GWh | Diversification attempt |
| Order Book | – | 10.3 GW | 6.4 GW under execution |
Sector Outlook
India’s solar manufacturing capacity is booming:
- Modules: Jumped from 38 GW (Mar ’24) to 74 GW (Mar ’25)
- Cells: From 9 GW to 25 GW in the same period
- Demand: 10.6 GW solar added in Q1 FY26 alone
Clearly, the demand is strong, but oversupply risk is real as too many companies rush to expand.
Pros & Cons for Investors
| Pros | Cons |
|---|---|
| Strong brand presence in solar modules | Heavy reliance on module sales (97% revenue) |
| Rapid capacity expansion planned | Export business volatile |
| Supportive government policies (PLI, PM-KUSUM, Suryodaya) | Valuations very expensive vs peers |
| Large domestic & global client base | Risk of sector-wide oversupply hitting margins |
| Diversification into solar cells & battery storage | Still limited presence in EPC & O&M segments |
Should You Apply?
| Investor Profile | Our View | Reasoning |
|---|---|---|
| Long-term, high-risk investors | May Consider | Betting on India’s solar boom & Vikram’s aggressive capacity expansion |
| Value-conscious investors | Avoid | Valuations (86x earnings) are too expensive compared to peers |
| Short-term listing gain seekers | Uncertain | Sentiment in renewables is strong, but pricing risk remains |
| Conservative / first-time IPO investors | Avoid | Better to wait for corrections or future opportunities |
Final Verdict – Bright but Expensive
Vikram Solar has everything it needs: a strong presence in the market, big plans for growth, and policy benefits from the government. But the price seems too high, especially when you think about the risks of oversupply and unstable exports.
People who are afraid of taking risks might want to stay away from this IPO, but people who are willing to take risks and have faith in India’s green energy story for a long time might still find it interesting.
