Solar solutions provider Solarium Green Energy Limited is set to make its market debut with an initial public offering (IPO), valued at ₹105.04 crores, an entirely fresh issue of 55 lakh shares. The subscription window opens on February 6, 2025, and draws to a close on February 10, 2025. Investors can track this company’s market journey as it prepares for its listing on the BSE SME platform, scheduled for Thursday, February 13, 2025.
Solarium Green Energy Limited presents a public offering, with equity shares of ₹10 per share face value being offered within a price band of ₹181 to ₹191 per share and a lot size of 600 shares. Interested retail investors can participate with a minimum investment of ₹114,600 to buy 1 lot, while High Net-worth Individuals (HNI) are invited to participate with a minimum subscription of ₹229,200 (2 lots). The company has planned a swift post-subscription timeline, with share allotment notifications slated for February 11, 2025. followed by its debut on the BSE SME platform on February 13, 2025. As the February 10 subscription deadline approaches, forward-thinking investors might want to evaluate this emerging player in the renewable energy space, especially given India's ambitious solar power targets and growing environmental consciousness.
Earlier in September 2024, Ventura reported that the company had submitted its Draft Red Herring Prospectus (DRHP) to the BSE SME platform.
Solarium Green Energy Limited IPO is a fundraise worth ₹105.04 crores, purely a fresh issue, with 286,800 shares reserved for the market maker Spread X Securities Private 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 February 6, 2025, to February 10, 2025, providing an opportunity for investors looking to gain a stake in the renewable energy sector.
| Solarium Green Energy IPO date | February 6, 2025 - February 10, 2025 |
| Price band / Fixed price | ₹181 to ₹191 per share |
| Face value | ₹10 per share |
| Lot size | 600 shares |
| Issue type | Book Built Issue IPO |
| Fresh issue size | 54,99,600 shares amounting to ₹105.04 crores |
| Total issue size | 54,99,600 shares amounting to ₹105.04 crores |
| Listing at | BSE SME |
| Market maker portion | 286,800 - Spread X Securities Pvt Ltd |
| Shareholding post-issue | 2,08,49,600 shares |
| Shareholding pre-issue | 1,53,50,000 shares |
The Solarium Green Energy Limited IPO opens for subscription on February 6, 2025, and closes on February 10, 2025, with allotment scheduled for February 11, 2025.
| IPO open date | February 6, 2025 (Thursday) |
| IPO close date | February 10, 2025 (Monday) |
| Basis of allotment | February 11, 2025 (Tuesday) |
| Initiation of refunds | February 12, 2025 (Wednesday) |
| Credit of shares to Demat account | February 12, 2025 (Wednesday) |
| Listing date on BSE / NSE SME | February 13, 2025 (Thursday) |
| Cut-off time for UPI mandate confirmation | 5 PM on February 10, 2025 (Monday) |
Solarium Green Energy Limited, established in 2015, has emerged as a comprehensive solar solutions provider, delivering end-to-end services from design and engineering to installation and maintenance. With 253 employees, the company has built an impressive track record, successfully completing over 11,000 residential installations, 172 commercial and industrial projects, and 17 government solar initiatives in the past three years, demonstrating their significant presence across diverse market segments.
The company's business model combines turnkey EPC services with strategic product distribution, offering everything from site assessment and technology evaluation to comprehensive project execution for both rooftop and ground-mounted installations. Their expertise spans residential, commercial, industrial, and government sectors, while their product portfolio includes essential components like PV modules, inverters, and ABT meters, sourced from accredited vendors to ensure quality and reliability in India's growing renewable energy landscape.
The company plans to utilise the funds raised through the public issue for meeting their capital requirements and for general corporate purposes.
The Solarium Green Energy Limited IPO’s key performance indicators, as on March 31, 2024, reflect the company's financial health with a Return on Equity of 124.38%, Return on Capital Employed (ROCE) at 54.18% and a Debt-to-Equity ratio of 1.51. The Return on Net-Worth (RoNW) stands at 76.69%, and the PAT Margin was 8.79%. The Price to Book Value was 14.10. The company’s market capitalisation is ₹398.23 crores.
| Period Ended | September 30, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Assets | 95.25 | 77.21 | 77.21 | 31.81 |
| Revenue | 82.34 | 177.81 | 98.93 | 167.89 |
| Profit After Tax | 7.55 | 15.59 | 1.74 | 2.05 |
| Net Worth | 33.13 | 20.33 | 4.74 | 3.00 |
| Reserves & Surplus | 17.78 | 17.33 | 1.74 | - |
| Total Borrowing | 33.47 | 30.76 | 26.72 | 14.80 |
Amount in ₹ crores
The pre-IPO EPS is at ₹10.16 while the post-IPO EPS will be ₹7.25. Similarly, the pre-IPO Price to Earnings ratio is 18.81 and will become 26.36 post-IPO.
Solarium Green Energy Limited benefits from scaled and integrated operations, positioning it as a prominent player in the renewable energy sector. The company offers end-to-end turnkey solutions, managing every stage of solar projects, from design to maintenance, which strengthens its ability to deliver high-quality and comprehensive services. Its diversified portfolio, which includes residential, commercial, industrial, and government projects, ensures a broad market reach and risk mitigation. Additionally, the company has built strong, long-term relationships with suppliers and clients, contributing to reliable procurement and operational continuity. Solarium's certifications, including ISO 9001:2015 and ISO 14001:2015, further enhance its credibility in the market. The leadership team brings extensive experience in the renewable energy sector, ensuring sound strategic decision-making and business growth.
The company’s strong domestic presence and its scalable operational model contribute to its ability to grow its market share within the renewable energy space. These factors, combined with its deep industry expertise and solid management team, help Solarium stand out in the competitive sector, positioning it for sustained growth. The company’s ability to handle the entire lifecycle of solar projects, from design to implementation, increases its appeal to a wide variety of customers. As the renewable energy industry grows, Solarium is poised to capitalize on its established reputation and expansive network, making it a strong contender in the renewable energy market.
Despite its strong market presence, Solarium Green Energy faces significant geographic concentration risks, with a large portion of its revenue stemming from operations in Gujarat. Any adverse developments in this region, such as regulatory changes or local economic downturns, could negatively impact the company’s financial performance. Additionally, the company’s dependence on a limited number of clients for a significant portion of its revenue increases vulnerability; the loss of one of these key customers could put a dent in the revenue. Furthermore, the company is also exposed to supplier concentration risks, as it relies on a few suppliers for crucial raw materials and components. Any disruption or quality issues with these suppliers could delay project execution, affect profitability, and damage customer relationships.
Solarium Green Energy is also vulnerable to regulatory and compliance risks, particularly related to government policies affecting the renewable energy sector. A notable example is the halting of its polycrystalline solar module manufacturing operations in February 2024, due to changes in the Approved List of Modules and Manufacturers by the Ministry of New & Renewable Energy. Such policy shifts could disrupt operations and negatively affect financial stability. Additionally, the company is susceptible to cost overruns, project delays, and challenges in estimating costs under lump-sum turnkey contracts, which could lead to increased expenses and working capital requirements. Legal proceedings involving the company or its promoters could further exacerbate its financial challenges and affect its business continuity. Moreover, Solarium has faced negative cash flows in the past, which may persist, potentially limiting its financial flexibility and growth opportunities.
Investing early in Solarium Green Energy Limited could offer a chance to be part of the company’s growth in renewable energy solutions. However, investors should thoroughly evaluate various factors such as the company’s operational history, financial stability, industry trends, and growth strategy, while aligning these with their personal investment goals and risk tolerance. It is advisable to carefully read the offer document and consult with a professional if necessary to make a well-informed decision about participating in this IPO.
What is the Solarium Green Energy Limited IPO?
The Solarium Green Energy Limited IPO is a BSE SME offering consisting of 55 lakh equity shares with a face value of ₹10 per share, aiming to raise ₹105.04 crores. The price band has been set between ₹181 to ₹191 per share, with a minimum order quantity of 600 shares. This IPO will be open for subscription from February 6, 2025, to February 10, 2025. Beeline Capital Advisors Private Limited is the book-running lead manager, Link Intime India Private Limited is the registrar while Spread X Securities Private Limited is the market maker.
When will the Solarium Green Energy IPO open?
The Solarium Green Energy Limited IPO will open for subscription on February 6, 2025, and will close on February 10, 2025.
When is the Solarium Green Energy IPO listing date?
The tentative listing date for the Solarium Green Energy Limited IPO is Thursday, February 13, 2025.
For android only