Vikram Solar, named among one of India’s leading solar panel manufacturers, is set to make its stock market debut next week. The company’s initial public offering (IPO) will open for public subscription on August 19 and close on August 21, with shares expected to list on the bourses by August 26. The company had filed draft papers for its IPO with Sebi in September 2024, which was approved by the market regulator in May this year.

The IPO comprises a fresh issue of equity shares worth ₹1,500 crore and an offer-for-sale (OFS) of 1.7 crore shares by the company’s promoters. According to the red herring prospectus filed on August 12, the IPO allotment will be finalised by August 22.

Despite planning a ₹300 crore pre-IPO placement, Vikram Solar confirmed that it did not go through with it. “No such pre-IPO placement has been undertaken by our company,” it stated in the filing.

A Step Towards Major Expansion

The fresh capital will largely fund the company’s ambitious expansion plans. ₹769.7 crore will be used to set up a fully integrated 3,000 MW solar cell and 3,000 MW module manufacturing facility in Tirunelveli, Tamil Nadu, via its subsidiary VSL Green Power. An additional ₹595.2 crore will go toward the facility’s second phase, doubling its module output.

Currently operating with 4.5 GW capacity across plants in Kolkata and Chennai, Vikram Solar aims to scale up to 15.5 GW by FY26 and 20.5 GW by FY27. This includes backward integration into the solar value chain, with two new solar cell units planned in Gangaikondan, Tamil Nadu.

Strong Financials Give Promising Outlook

Vikram Solar’s performance has seen a significant upswing. In FY25, it posted a profit of ₹139.8 crore, a 75% jump from the previous year. Revenue also rose by over 36% to ₹3,423.5 crore.

Promoters currently hold a 77.64% stake, while the remaining 22.36% is held by public investors, including Plutus Wealth’s Arpit Khandelwal.

It is said that the IPO will be managed by JM Financial, Nuvama Wealth, UBS Securities, Equirus Capital, and PhillipCapital.