Solar91 Cleantech Limited, a leading provider of engineering, procurement, and construction (EPC) solutions for the solar energy sector, is set to debut in the stock market with an initial public offering (IPO) worth ₹106 crores. The company will issue 54.36 lakh fresh shares, opening the subscription window from December 24 to December 27, 2024. Solar91 will be listed on the BSE SME platform on January 1, 2025, offering investors an exciting opportunity to tap into the growing renewable energy market.
The IPO will offer equity shares with a ₹10 face value at a price band of ₹185 to ₹195 per share, with a lot size of 600 shares. Retail investors can participate with a minimum investment of ₹117,000 for one lot, while High Net-Worth Individuals (HNIs) are required to invest at least ₹234,000 for two lots. Following the subscription, the company will announce share allotments by December 30, 2024, providing a fast-track route for those looking to invest in the booming clean energy sector.
Solar91 Cleantech Limited IPO is a fundraise worth ₹106 crores comprising purely of a fresh issue with 304,800 shares reserved for the market maker Prabhat Financial Services Limited. Qualified Institutional Buyers are being offered not more than 50% of the net issue, retail investors are being offered not less than 35% of the net issue and Non-Institutional Investors (NIIs) / High Net-worth Individuals (HNIs) are being offered not less than 15% of the net issue. The IPO will be available for subscription from December 24, 2024, to December 27, 2024, providing an opportunity for investors looking to gain a stake in the renewable energy space.
| Solar91 Cleantech IPO Date | December 24, 2024 - December 27, 2024 |
| Price Band | ₹185 to ₹195 per share |
| Face Value | ₹10 per share |
| Lot Size | 600 shares |
| Issue Type | Book Built Issue IPO |
| Fresh Issue Size | 54,36,000 shares worth ₹106 crores |
| Total Issue Size | 54,36,000 shares worth ₹106 crores |
| Listing at | BSE SME |
| Market Maker Portion | 304,800 - Prabhat Financial Services Ltd |
| Share Holding Post Issue | 2,05,13,809 |
| Share Holding Pre Issue | 1,50,77,809 |
The Solar91 Cleantech Limited IPO opens for subscription on December 24, 2024, and closes on December 27, 2024, with allotment scheduled for December 30, 2024.
| IPO Open Date | December 24, 2024 (Tuesday) |
| IPO Close Date | December 27, 2024 (Friday) |
| Basis of Allotment | December 30, 2024 (Monday) |
| Initiation of Refunds | December 31, 2024 (Tuesday) |
| Credit of Shares to Demat Account | December 31, 2024 (Tuesday) |
| Listing Date on NSE SME | January 1, 2024 (Wednesday) |
| Cut-off Time for UPI Mandate Confirmation | 5 PM on December 27, 2024 (Friday) |
Solar91 Cleantech Limited, established in 2015, is a specialized provider of Engineering, Procurement, and Construction (EPC) Solar Energy Solutions, primarily serving commercial and industrial customers across the renewable energy sector. The company's comprehensive portfolio includes rooftop solar installations for industrial, commercial, and residential sectors, along with open access and group captive solutions. They've expanded their operations to include independent power production (IPP) and participation in government initiatives like the PM Kusum Scheme for agricultural solar projects, earning recognition as an industry leader in Rajasthan and nationally in the Commercial and Industrial Solar PV sector.
Operating across 13 Indian states and with international presence through a project in Kenya, Solar91 Cleantech has successfully delivered 192 projects totaling over 94 MW capacity. The company operates through three main business segments: EPC services, IPP model through wholly owned subsidiaries, and Operations & Maintenance services. With 81 employees as of September 2024, they've established themselves as a significant player in the distributed renewable energy market, offering end-to-end solar energy solutions while actively developing their own solar projects.
The company plans to use the proceeds for three main purposes: investing in their subsidiary companies to develop solar projects under the IPP model, funding their working capital requirements, and supporting general corporate expenses. This allocation strategy aims to expand their power generation capacity while maintaining operational liquidity and supporting overall business growth.
The Solar91 Cleantech Limited IPO has caught the eyes of investors as the company reportedly saw an annual rise of 14% in its revenue and 1060% yearly increase in the Profit After Tax (PAT), during the financial year ended March 31, 2024.
As of July 31, 2024, the key performance indicators reflect the company's financial health with a Return on Equity (RoE) of 0.50%, Return on Capital Employed (ROCE) at 25.81% and a Debt-to-Equity ratio of 2.30. The Return on Net-Worth (RoNW) stands at 49.51%, and the PAT Margin was 5.46%.
| Period Ended | July 31, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Revenue | 5,053.51 | 4,297.40 | 3,766.95 | 4,201.23 |
| Assets | 5,247.35 | 2,495.28 | 1,299.40 | 953.85 |
| Net Worth | 2,843.35 | 471.50 | 235.68 | 130.56 |
| Profit After Tax | 400.01 | 235.81 | 20.33 | 32.34 |
| Reserves & Surplus | 1,335.57 | 469.95 | 234.14 | 129.29 |
| Total Borrowing | 1,196.44 | 1,084.72 | 776.21 | 226.36 |
Amount in ₹ crores
Solar91 Cleantech Limited demonstrates robust operational capabilities through its wide geographical presence across 13 states and international markets, having successfully commissioned over 191 projects with a total capacity exceeding 94 MW. The company's unique cluster-based distributed solar EPC and IPP model, combined with one of the fastest turnaround times in the industry, has driven impressive financial growth.
The company's competitive advantages include an in-house design and government approvals team, digitally enabled processes, and comprehensive solar solutions ranging from rooftop installations to open-access group captive solutions. Their participation in government initiatives like the PM KUSUM scheme, along with a significant order book of 157 MW, positions them well for sustained growth. The leadership team, comprising IIT graduates, brings technical expertise and operational excellence to the organization, while their end-to-end service model from design to maintenance ensures customer satisfaction and recurring revenue streams.
Solar91 Cleantech faces several operational challenges, primarily stemming from its first-generation promoters' limited experience in managing a listed company and dependence on rented premises, which could pose risks of operational disruptions. The company's heavy reliance on key management personnel presents a vulnerability, as their departure could significantly impact operations and strategic direction. Additionally, the capital-intensive nature of solar projects creates financing challenges, particularly in volatile markets with fluctuating interest rates and stricter lending terms.
The company's business model is susceptible to weather-related risks that can affect project efficiency, timelines, and costs, potentially impacting overall performance and revenue stability. Their revenue concentration among a small number of clients poses financial risks, while working capital management remains a concern. The absence of an established market for their equity shares introduces uncertainty about post-listing trading stability. Furthermore, the company operates in a highly competitive sector where changes in government policies and subsidies could significantly affect their profitability and growth prospects.
Investing in Solar91 Cleantech Limited's IPO offers a chance to tap into the renewable energy sector's growth through an established player with a proven track record since 2015. The company's diverse business model spanning EPC services, IPP operations, and O&M services, along with its presence across 13 states and successful completion of 192 projects totaling 94 MW, demonstrates its execution capabilities.
However, potential investors should thoroughly evaluate key aspects including the company's financial performance, competitive position, growth strategies particularly in the IPP segment, market dynamics in the renewable energy sector, and execution risks before investing. Additionally, individuals should align this investment opportunity with their personal financial goals and risk tolerance, and consider reviewing the detailed offer document or consulting financial advisors for a well-informed investment decision.
What is the Solar91 Cleantech IPO?
The Solar91 Cleantech Limited IPO is an BSE SME offering consisting of 54.36 lakh equity shares with a face value of ₹10, aiming to raise to ₹106 crores. The price band has been set between ₹185 to ₹195 per share, with a minimum order quantity of 600 shares. This IPO will be open for subscription from December 24, 2024, to December 27, 2024. Narnolia Financial Services Limited is the book-running lead manager, Maashitla Securities Private Limited is the registrar while Prabhat Financial Services Limited is the market maker.
When will the Solar91 Cleantech IPO open?
The Solar91 Cleantech Limited IPO will open for subscription on December 24, 2024, and will close on December 27, 2024.
When is the Solar91 Cleantech IPO listing date?
The tentative listing date for the Solar91 Cleantech Limited IPO is Wednesday, January 1, 2025.
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