Alpex Solar Ltd IPO - Review, Valuation, Opening Date & GMP

Alpex Solar Limited IPO  - Complete Overview

Alpex Solar Limited started in August 1993 as Alpex Exports Private Limited and is now a top solar panel maker. They specialise in making different types of solar panels, like ones with monocrystalline and polycrystalline cells, including bifacial, mono-PERC, and Half-Cut solar PV modules.

The company works with other businesses (B2B) by making products for them as a contract manufacturer. They also get involved with regular people (B2C) and take part in projects installing solar water pumps.

Their main manufacturing place is in Greater Noida, Alpex Solar Limited is important in the solar energy world. They help with the whole process, from designing and buying materials to building solar pumps for both above-ground and underwater use.

Some big clients they have worked with include Solarworld Energy Solutions Pvt Ltd, BVG India Limited, Tata Power, Hild Energy Private Limited, and Shakti Pumps India Limited.

Alpex Solar Limited is making a difference by bringing solar solutions to people and businesses alike. By November 2023, the company had 196 people working in different roles. where they can produce up to 450 MW of solar panels, and they are planning to make even more in the future.

 

Alpex Solar Limited IPO Overview

Alpex Solar Limited IPO date is slated to be open for subscription from February 8, 2024, to February 12, 2024. This NSE SME IPO follows a Book Built Issue IPO.

 Alpex Solar Limited IPO price is fixed at Rs. 109- Rs.115 per share. 

The total issue size of this IPO amounts to Rs.74.52 CR. The company has reserved 50% for institutional investors, 15% for non-institutional investors, and 35% for retail investors.

 

 

Alpex Solar Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	8 February 2024
IPO Closing Date	12 February 2024
IPO Allotment Date	13 February 2024
Refund initiation	14 February 2024
IPO Listing Date	15 February 2024

 

Alpex Solar Limited IPO Details

IPO Opening & Closing Date	8 February to 12 February 2024
Face value	Rs.10 per share
Issue Price	Rs.109- 115  per share
Lot Size	1200 Shares
Price of 1 lot	Rs. 138,000
Total Issue Size	6,480,000 shares (aggregating up to Rs.74.52 CR)
Fresh issue	6,480,000 shares (aggregating up to Rs.74.52 CR)
Listing at	NSE SME
Issue Type	Book Built Issue IPO
Registrar	Skyline Financial Services Private Ltd

 

Alpex Solar Limited IPO Lot Details

Application	Lot	Shares	Amount
Minimum Lot Investment (Retail)	1 lot	1200	Rs.138,000
Maximum Lot Investment (Retail)	1 lot	1200	Rs.138,000
Minimum Lot Investment (HNI)	2 lot	2,400	Rs.276,000

 

Alpex Solar Limited IPO Reservation

QIB Shares Offered	Maximum 50%
Retail Shares Offered	Minimum 35%
Other Shares Offered	Minimum 15%

 

Company Financial

As of Sep 30 FY23, Alpex Solar Limited shows growth in companies financials compared to Mar 31 FY22.

(Amount in Lakhs)

Period	Sep 30, FY 23	Mar 31, FY 23	Mar 31, FY 22
Total Assets	14,188.46	12,559.64	10,003.75
Total Revenue	21,310.72	19,592.07	16,853.62
PAT	760.58	378.58	19.42
Net worth	4,906.86	4,146.29	3,767.70
Reserve & Surplus	4,307.08	3,546.51	3,167.92
Total Borrowings	4,175.15	4,735.73	2,669.98

 

Geographical-Wise Revenue Breakup

Uttar Pradesh dominates Alpex Solar Limited's revenue, with a changing geographical distribution including contributions from Punjab, Haryana, and other regions.

(in % age)

Particulars	Mar 31, FY 23	Mar 31, FY 22	Mar 31, FY 21
Uttar Pradesh	80.29%	94.18%	97.83%
Punjab	7.62%	0.00%	0.04%
Haryana	9.71%	-	-
Chhattisgarh	0.74%	5.01%	-
Himachal	0.74%	-	-
Delhi	0.89%	0.77%	1.39%
Maharashtra	0.01%	0.01%	0.03%
Tamil Nadu	0.00%	0.02%	0.01%
Rajasthan	0.00%	0.02%	0.71%
Total	100%	100%	100%

Segment-Wise Revenue Breakup

Alpex Solar Limited's revenue is mainly driven by the Solar Module segment, showing a shift in segment-wise distribution compared to previous fiscal years.

(in % age)

Particulars	Sep 30, FY 23	Mar 31, FY 23	Mar 31, FY 22
Solar Module	87.09%	77.17%	86.54%
Solar Water Pump	11.34%	18.76%	5.13%
Others	1.57%	4.07%	8.34%
Total	100%	100%	100%

Revenue by Operations:

Alpex Solar Limited's revenue showed consistent growth in the latest reporting period compared to previous fiscal years.

(Amount in Lakhs)

Particulars	Sep 30, FY 23	Mar 31, FY 23	Mar 31, FY 22
Revenue from operations	20,458.94	18,269.41	15,270.79
Other Income	254.42	123.80	336.11
Total Revenue	20,713.36	18,393.22	15,606.91

 

 

The Objective of the Issue

• Capital Expenditure for upgrading and expanding the existing solar module manufacturing facility by adding 750 MW.

• Capital Expenditure for setting up a new manufacturing unit for Aluminum frames for solar modules.

• Meeting working capital requirements of the company.

• Covering general corporate expenses.

 

Promoters and Management of Alpex Solar Limited IPO

1. Mr. Ashwani Sehgal.

2. Mrs. Monica Sehgal.

3.Mr. Vipin Sehgal.

Pre-issue Promoter Shareholding	93.53%
Post-issue Promoter Shareholding	68.76%

 

Alpex Solar Limited IPO Lead Managers

•  Corporate Capital Ventures Pvt Ltd

 

Peers of Alpex Solar Limited IPO:

Alpex Solar Limited IPO has a higher P/E ratio and lower EPS compared to Insolation Energy Ltd.

Name of the Company	Face value (Rs. per Share)	P/ E	EPS (Basic) (Rs.)
Alpex Solar Limited	10	54.76	2.10
Insolation Energy Ltd	10	20.95	6.01

 

Evaluation

The IPO is priced between Rs. 109 and Rs. 115 per share.

Looking at the Price/Earnings (P/E) Ratio in relation to the issue price of Rs.109 to Rs.115 per equity share:

- P/E ratio at the lower end of the price band is 51.90 times, and at the higher end, it's 54.76 times based on Basic and diluted EPS of Rs.2.10 as of March 31, 2023.

- P/E ratio at the lower end is 79.00 times, and at the higher end, it's 83.33 times based on Weighted Average Basic and diluted EPS of Rs.1.38.

Comparing this with the industry average P/E of 50.1 times:

The IPO's P/E ratio range of 54.76 to 83.33 seems undervalued compared to the industry average of 50.1 times.

 

 

Dividend Policy

The company hasn't paid dividends in past fiscal years. Whether we can pay them in the future depends on factors like profits, past dividend trends, capital needs, legal restrictions, and other relevant considerations evaluated by our Board.

 

IPO's Strengths

- Expand business value with integrated EPC services for our solar PV module manufacturing.

- Operations span Greater Noida manufacturing and offices in Delhi, Mumbai, Himachal Pradesh, Chittorgarh, Jaipur, Tirupur, and Ludhiana.

- Strong Client Relationships.

- Strong supplier base for sourcing of raw materials/ products

 

IPO's Weaknesses

- Government support and spending on advertising impact the company's performance.

- Competitors' performance is a key factor to watch.

- Developments in India's economic and fiscal policies matter for the company.

- Volatility in Indian and global capital markets can affect the company's financial stability.

 

IPO GMP Today

The Latest GMP of Alpex Solar Limited IPO is Rs. 148.

 

Conclusion

The Alpex Solar IPO looks like a good deal for investors interested in solar energy. The company makes solar panels and plans to grow. The IPO's price is reasonable, and the company has a clear strategy for the future. While there are positives like expanding services and good customer relationships, it's important to be aware of possible challenges like government policies and market changes. 

If you're thinking about investing in clean energy, the Alpex Solar IPO could be worth considering, but keep an eye on the risks. 

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

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