The initial public offering (IPO) of Solarium Green Energy Limited opened for subscriptions on February 6, 2025, aiming to raise ₹105.04 crore. The company priced its shares between ₹181 and ₹191, with investors required to apply for at least 600 shares, amounting to ₹1,14,600. This IPO, entirely consisting of fresh share issuance, will close on February 10, 2025, with subsequent expectations for listing on the BSE SME platform on February 13, 2025.
Founded in 2015 and based in Ahmedabad, Solarium Green Energy specializes in providing comprehensive solar solutions. Their offerings span design, engineering, procurement, construction, commissioning, and operation and maintenance (O&M) for both residential and commercial solar projects. The breadth of their work includes over 11,195 residential rooftop projects along with several commercial and governmental installations.
On its inaugural day, the IPO garnered considerable interest and as of 11:55 am, reports indicated the retail portion was subscribed 0.3 times, with non-institutional investors at 0.16 times. The qualified institutional buyers had yet to place bids, leaving anticipation among market watchers. Those following the grey market noted the shares were trading at a premium of ₹20, indicating potential listing gains.
According to Solarium Green Energy, they plan to utilize the net proceeds primarily for working capital and general corporate purposes. The strong demand for their solar products, including photovoltaic (PV) modules and solar PV inverters, has positioned the company favorably within the renewable energy sector. This push aligns with global trends toward sustainable energy solutions.
At present, Solarium Green Energy employs 205 full-time staff, bolstered by their dedicated engineering team, delivering high-quality services across various project types. During the six months ending September 30, 2024, the company reported revenues of ₹82.34 crore and profits of ₹7.55 crore. For the financial year 2023-24, revenue reached ₹177.81 crore, climbing from ₹98.93 crore the previous year.
The company has also received validation from numerous certifications including those from the Bureau of Indian Standards (BIS), amplifying investor confidence leading up to the IPO. Prior to its public offering, Solarium Green secured ₹29.85 crore through anchor investments from notable institutional players, including Aarth AIF and Niveshaay Hedgehogs Fund.
Investment experts recommend applying for the IPO with a long-term view, particularly as renewable energy continues to gain traction on the global stage. The allocation structure indicates 50% of the shares are reserved for qualified institutional buyers, 35% for retail investors, and 15% for non-institutional buyers.
Overall, the expectations surrounding the Solarium Green Energy IPO are positive, especially considering the growing focus on solar energy solutions across India and beyond. With solar energy becoming ever more central to the discussion on sustainability, this IPO presents both opportunity and insight for potential investors interested in the renewables market.
With shares set to list soon on the BSE SME, investors and analysts alike will be keeping close watch on the performance of Solarium Green Energy as it transitions from private entity to public company. Their success could signal greater momentum for the renewable energy sector and its pivotal role in the future economy.