Vikram Solar - A leading Solar PV module manufacturer
19 Aug 2025 , 09:35 AM
Vikram Solar is a domestic pure-play solar PV module manufacturer. It has expanded its manufacturing capacity from 12 MW in 2009 to 4.5 GW as of fiscal year 2025. It operates in an industry experiencing robust growth due to government policies, falling costs, and declining import dependence.
The IPO is aimed at strengthening its manufacturing base and providing liquidity to its promoter shareholders.
Offer Details of the IPO
· Total Offer size: Up to INR 20,793 million
· Fresh Issue: Up to INR 15,000 million
· Offer for Sale: Up to INR 5,793 million, comprising:
1. Up to 6,000,000 Equity Shares by Gyanesh Chaudhary, a promoter selling shareholder
2. Up to 1,500,000 Equity Shares by Vikram Capital Management Private Limited, a promoter selling shareholder
3. Up to 9,950,882 Equity Shares by Anil Chaudhary, a promoter group selling shareholder
Price Band: INR 315 to INR 332 per Equity Share
Book Running Lead Managers (BRLMs):
· JM Financial Limited
· Nuvama Wealth Management Limited
· UBS Securities India Private Limited
· Equirus Capital Private Limited
· PhillipCapital (India) Private Limited
Objectives of the IPO
To Fund Capital Expenditures
Partial funding of capital expenditure through investment in a wholly owned Subsidiary, VSL Green Power Private Limited, for setting up of an integrated 3,000 MW solar cell and 3,000 MW solar module manufacturing facility in Tamil Nadu (Phase 1): INR7,697.30 million
Funding of capital expenditure through investment in our wholly owned Subsidiary, VSL Green Power Private Limited, for expanding the manufacturing capacity of the solar module manufacturing facility setup under the Phase-I Project from 3,000 MW to 6,000 MW (Phase-II) : INR5,952.08 million
Indian Solar Power Market Overview
The Indian solar power market is a rapidly growing industry that involves the generation of electricity from solar energy. The industry caters to a wide range of end customers, including residential, commercial, and industrial consumers, as well as government institutions. The products and services offered by the industry include solar panels, inverters, mounting structures, and other related equipment, as well as engineering, procurement, and construction (EPC) services for setting up solar power plants.
The Indian solar power market can be broadly segmented into three key categories: Solar Module Manufacturing, Solar Power Generation, and Solar EPC Services.
Solar Module Manufacturing: This segment involves the production of solar modules, which are the building blocks of solar power systems. Indian manufacturers produce a range of solar modules, including monocrystalline and polycrystalline modules, with varying capacities and efficiencies.
Solar Power Generation: This segment involves the generation of electricity from solar energy, either through rooftop solar installations or large-scale solar power plants. The generated electricity is fed into the grid or used for captive consumption.
Solar EPC Services: This segment involves the provision of EPC services for setting up solar power plants, including design, engineering, procurement, and construction. EPC players in India offer a range of services, from small rooftop installations to large-scale solar power plants.
Industry Size and Growth Trends
The Indian solar power market has witnessed significant growth in recent years, driven by government initiatives, declining module prices, and increasing demand for renewable energy. As of fiscal 2025, the total installed capacity of solar power in India stands at approximately 116 GW, with a growth rate of 6.5% over the previous year.
Segment-wise Growth Trends
The growth of the solar power market can be segmented into three main categories: utility-scale solar, rooftop solar, and solar parks.
· Utility-scale Solar: This segment accounts for the largest share of the solar power market, with a growth rate of 7.2% in fiscal 2025. The government’s initiatives to promote large-scale solar projects and the increasing demand for renewable energy have driven growth in this segment.
· Rooftop Solar: The rooftop solar segment has also witnessed significant growth, with a growth rate of 5.5% in fiscal 2025. The increasing demand for rooftop solar installations from residential and commercial customers has driven growth in this segment.
· Solar Parks: The solar park segment has grown at a rate of 4.2% in fiscal 2025. The government’s initiatives to promote the development of solar parks and the increasing demand for renewable energy have driven growth in this segment.
Key Drivers of Growth
The growth of the solar power market in India can be attributed to several key drivers:
· Government Initiatives: The government’s initiatives to promote the development of solar power, such as the National Solar Mission, have driven growth in the industry.
· Declining Module Prices: The decline in module prices has made solar power more competitive with traditional sources of energy, driving growth in the industry.
· Increasing Demand for Renewable Energy: The increasing demand for renewable energy from residential, commercial, and industrial customers has driven growth in the industry.
· Private Sector Participation: The participation of private sector companies in the development of solar power projects has driven growth in the industry.
Vikram Solar Limited: A Leading Player in the Indian Renewable Energy Sector
Vikram Solar Limited is a leading Indian company in the renewable energy sector, specializing in the design, manufacture, and installation of solar photovoltaic (PV) modules and systems. The company was founded in 2005.
Vikram Solar Limited was originally incorporated as International Leather Clothiers Private Limited in 2005. However, the company’s business focus shifted to the renewable energy sector in 2009, and it was subsequently renamed Vikram Solar Private Limited. In 2017, the company was converted into a public limited company and was renamed Vikram Solar Limited.
The company’s founders, Gyanesh Chaudhary and Hari Krishna Chaudhary, have a strong background in the energy sector. Gyanesh Chaudhary, the company’s Chairman and Managing Director, has over 25 years of experience in the energy sector, while Hari Krishna Chaudhary, the company’s former Director, has over 40 years of experience in the sector.
Operating Segments
Vikram Solar Limited operates in the following segments:
· Solar PV Modules: The company designs, manufactures, and supplies solar PV modules to customers in India and abroad. Its product portfolio includes a range of solar PV modules with different wattages and efficiencies.
· Engineering, Procurement, and Construction (EPC): The company provides EPC services for solar PV projects, including design, engineering, procurement, construction, and commissioning of solar PV power plants.
· Operations and Maintenance (O&M): The company provides O&M services for solar PV power plants, including monitoring, maintenance, and repair of solar PV systems.
Vikram Solar Limited has partnerships with several leading companies in the renewable energy sector, including:
· Tata Power: The company has a partnership with Tata Power to provide solar PV solutions to customers in India.
· Indian Railways: The company has a partnership with Indian Railways to provide solar PV solutions for railway stations and trains.
· NTPC: The company has a partnership with NTPC to provide solar PV solutions for NTPC’s power plants.
Competitive Landscape
The company operates in a highly competitive solar PV module manufacturing industry. The major competitors in this space include:
· Waaree Energies
· Rayzon Solar
· Premier Energies
Competitor Analysis
· Waaree Energies: Waaree Energies is a leading player in the Indian solar PV module manufacturing industry. The company has a strong presence in the domestic market and has also been expanding its international operations. Waaree Energies has a manufacturing capacity of 2 GW and has been investing heavily in research and development to improve its product offerings.
· Rayzon Solar: Rayzon Solar is another major player in the Indian solar PV module manufacturing industry. The company has a manufacturing capacity of 1.5 GW and has been focusing on expanding its presence in the international market. Rayzon Solar has been investing in new technologies to improve its product offerings and has been expanding its distribution network.
· Premier Energies: Premier Energies is a leading player in the Indian solar PV module manufacturing industry. The company has a manufacturing capacity of 1.2 GW and has been focusing on expanding its presence in the domestic market. Premier Energies has been investing in research and development to improve its product offerings and has been expanding its distribution network.
Competitive Positioning
· Strong research and development capabilities: The company has been investing heavily in research and development to improve its product offerings and has been able to develop new and innovative products.
· Strong distribution network: The company has a strong distribution network in the domestic market and has been expanding its international operations.
· Focus on quality and customer service: The company has been focusing on providing high-quality products and excellent customer service, which has helped it to build a strong reputation in the market.
Overall, the company is well-positioned in the competitive landscape and has been able to differentiate itself from its competitors through its strong research and development capabilities, strong distribution network, and focus on quality and customer service.
Strengths
Diversified Product Portfolio: Vikram Solar has a diversified product portfolio that caters to various customer segments, including residential, commercial, and industrial. The company offers a range of solar PV modules, including monocrystalline and polycrystalline modules, with varying wattage and efficiency levels. This diversified product portfolio enables the company to tap into different market segments and increase its revenue streams.
Robust Manufacturing Capabilities: Vikram Solar has robust manufacturing capabilities, with a total installed capacity of 4.50 GW across its factories in West Bengal and Tamil Nadu. The company’s manufacturing facilities are equipped with advanced machinery and technology, enabling it to produce high-quality solar PV modules. The company’s manufacturing capabilities also enable it to meet the growing demand for solar PV modules in the domestic and international markets.
Weaknesses
Dependence on Government Policies and Regulations: The company’s business is heavily dependent on government policies and regulations, particularly in the renewable energy sector. Changes in government policies or regulations can impact the company’s business and revenue streams.
High Debt Levels: The company has high debt levels, which can impact its financial stability and increase its interest expenses. The company’s debt levels are primarily due to its expansion plans, including the setting up of new manufacturing facilities and the development of new products.
Limited Geographic Presence: The company’s geographic presence is limited to India, which can impact its revenue streams and growth prospects. The company’s limited geographic presence also makes it vulnerable to changes in the Indian market and regulatory environment.
Financial Profile
Robust Revenue Growth: Vikram Solar has witnessed a revenue CAGR of 29% over the past two years. While this is robust, it is lower than the revenue growth witnessed by peers. Strong industry growth, aided by governmental policies, has driven the growth of the market. While the company’s module sales have grown strongly, lower module prices and a changing composition of revenues (from exports to domestic demand) have likely led to the below-peer revenue growth.
Better profitability: Its EBITDA CAGR of 63% outpaced revenue growth over the past two years. While the improvement in its EBITDA margins was strong in FY24, they did not improve in FY25. Many of its competitors witnessed margin improvement in FY25 too.
Relatively Expensive on P/E ratio: At the upper end of its price range, the company’s P/E ratio is higher than its peer group.
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