Oriana Power Limited IPO - Valuation, Date, Review, & GMP

Oriana Power Limited - Complete Overview

Established in 2013, Oriana Power Limited specializes in providing solar energy solutions to industrial and commercial clients. The company focuses on delivering low-carbon energy solutions through the installation of on-site solar projects, including rooftop and ground-mounted systems, as well as off-site solar farms known as Open Access.

Oriana Power's operations into two primary segments: the Capital Expenditure (CAPEX) model and the Renewable Energy Service Company (RESCO) model. In the CAPEX model, the company takes charge of the Engineering, Procurement, Construction, and Operation of solar projects. With their expertise, they have successfully executed projects with a combined capacity exceeding 100 MWp in various locations across India and Kenya.

On the other hand, the RESCO model enables Oriana Power to offer solar energy solutions based on the BOOT (Build, Own, Operate, Transfer) model. This approach allows customers to access the benefits of solar energy without making upfront investments.

The company have an impressive portfolio of 88 operational and under-construction projects, with a collective capacity exceeding 35 MWp spread across diverse locations in India, including Rajasthan, Delhi, Haryana, Goa, Punjab, Gujarat, Karnataka, Andhra Pradesh, Odisha, and more. Furthermore, the company has extended its global presence by establishing projects in Kenya, Africa.

What does the company do?

The company delivered low-carbon energy solutions through the installation of on-site solar projects, including rooftop and ground-mounted systems, as well as off-site solar farms known as Open Access.

IPO Overview

The Oriana Power Limited IPO will be open for bidding on the NSE SME from 1st August to 3rd August 2023. The issue price for a share of the Oriana Power Limited IPO is set to be in the range of Rs. 115 to Rs. 118.

A single lot of shares consists of 1200 shares, priced at Rs.141,600. The company has allocated 50% of the shares to institutional investors, 15% to non-institutional investors, and 35% to retail investors out of the total issue.

The expected listing date of the share in the stock market is 11th August 2023.

Oriana Power Limited IPO timetable

EVENTS	DATE
IPO Opening Date	1 August 2023
IPO Closing Date	3 August 2023
IPO Allotment Date	8 August 2023
Refund initiation	9 August 2023
IPO Listing Date	11 August 2023

Oriana Power Limited IPO Details

IPO Opening & Closing Date	1 August to 3 August 2023
Face Value	Rs. 10 per share
Issue Price	Rs. 115 to Rs. 118 per share
Lot Size	1200 Shares
Price of 1 Lot	Rs. 141,600
Issue Size	5,055,600 Shares (aggregating up to Rs. 59.66 Cr)
Offer for Sale	NA
Fresh Issue	5,055,600 Shares (aggregating up to Rs. 59.66 Cr)
Listing at	NSE SME
Issue Type	Book Built Issue IPO
Registrar	Skyline Financial Services Pvt. Ltd.

Oriana Power Limited IPO Lot Details

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	1 Lot
Minimum Lot Investment (HNI)	2 Lot

Oriana Power Limited IPO Reservation

Institution Portion	50%
Non-Institution Portion	15%
Retail Portion	35%

Company Financial

Amount in Lakhs

Period	FY 21	FY 22	FY 23
Total Assets	2964.83	5572.69	7799.99
Total Revenue	3376.98	10146.86	13395.37
Net Profit	282.38	695.53	1268.52
Net Worth	771.29	1775.82	3621.84
Reserve & Surplus	464.29	1159.82	2950.84
Total Borrowings	75.23	769.07	1489.19

Geographical Distribution of the Revenue of the Last 3 Years

State/ Country	FY 23	FY 22	FY 21
Himachal Pradesh	Nil	1,84,18,620.00	Nil
Punjab	1,94,80,000	6,82,74,030.00	Nil
Uttarakhand	2,37,58,659	7,55,97,758.40	Nil
Haryana	13,03,21,452	4,77,06,927.92	11,54,319.00
Delhi	4,39,99,057	2,84,57,545.16	46,65,356.46
Rajasthan	17,53,34,727	8,42,92,578.00	10,70,29,918.31
Uttar Pradesh	73,35,55,551	61,08,93,757.00	17,96,17,264.58
Maharashtra	16,45,55,951	1,84,04,608.00	2,60,79,452.34
Karnataka	3,29,19,526	3,24,92,212.60	1,31,16,086.10
Telangana	Nil	17,00,000.00	3,00,000.00
Andhra Pradesh	9,50,500	2,39,38,030.00	43,30,125.45
Odisha	Nil	Nil	11,49,650.00
Tamil Nadu	44,86,300	Nil	Nil
Gujarat	Nil	Nil	53,100.00
Madhya Pradesh	Nill	Nill	70,500.00
Goa	Nil	Nil	73,000.00
Kenya	Nil	Nil	54,500.00
Germany	Nill	Nill	86.08
Total	1,32,93,61,722.90	1,01,01,76,067.08	33,76,93,358.32

Revenue Generated from top 10 suppliers in FY23

Particulars	FY 23
ZETWERK MFG BUSINESS PVT LTD	32,71,67,902.09
REDINGTON (INDIA) LIMITED	16,10,26,531.50
GP ECO SOLUTIONS INDIA PVT LTD	10,83,59,000.00
WINNERSPITCH ENERGY PVT LTD	8,04,32,568.00
STOCKWELL SOLAR SERVICES PVT LTD	4,54,72,390.00
HELIUMFOUR SOLAR PVT LTD	4,46,04,370.00
GAUTAM SOLAR PVT LTD	3,69,75,777.50
TRINIX IMPEX PVT LTD	3,06,10,561.04
SOVA SOLAR	2,10,78,550.00
VINAYAK TRANSCO PVT LTD	1,64,23,626.80

Objective of the Issue

The company intends to utilize the raised funds to achieve the following objectives:

• To fulfil the working capital needs including covering day-to-day operating expenses like salaries, rent, utilities, and inventory.
• Investment in subsidiary companies.
• Capital expenditure including investing in technology, equipment, and infrastructure, supporting the business's growth and expansion.

Promoters and Management of Oriana Power Limited

The company is led by a seasoned team of promoters, among whom Mr Anirudh Saraswat stands out with 14 years of expertise in business and new product development, Mr Rupal Gupta brings 15 years of industrial experience to the table, while Mr Parveen Kumar boasts an impressive 15-year background in the Solar Industry, possessing extensive knowledge and experience in solar products.

Pre-issue Promoters Holding	83.40%
Post-issue Promoters Holding	61.41%

Peer Comparison

The company operates in a competitive market, and it is crucial to assess the performance of competitors to gain a better understanding of the company's future prospects. Here are some key peers of the company, as stated in its RHP:

Company Name	Total Income	EPS (Rs.)	P/E Ratio
Oriana Power Limited	13,730.17	17.50	-
KPI Green Energy Limited	64,703.47	30.33	13.77
Gensol Engineering Limited	39,735	21.50	51.71

IPO's Valuations

As per the Orion Power Limited DRHP, the company reports an EPS of Rs. 17.50, and the share price for the IPO is set within the range of Rs. 115 to Rs. 118 per share. However, the company has not specified the P/E ratio required for IPO valuation. Nevertheless, if we assume the upper band price of Rs. 118 as the market price of the share, the estimated PE ratio of the company would be 6.

Dividend Policy

The company has not adopted a formal dividend policy and made any dividend payments in the past. The potential for future dividend payments will be contingent on factors such as financial condition, cash flows, working capital needs, capital expenditures, and other factors.

IPO's Strengths

• An experienced management team.
• Training and skill development initiatives to enhance the capabilities of the Operation & Maintenance Team.
• Existing number, visible order book and favorable national policy support.
• 24/7 Premium Support System.

IPO Weaknesses

• Corporate Guarantees amounting to Rs. 7,437.00 Lakh have been provided by the Company for loans taken by its subsidiaries and associate companies.
• The Company operates in a competitive industry.
• The success of the business operations relies heavily on consistent solar weather conditions.
• The average cost of acquisition of Equity Shares by the Promoters might be lower than the issue price.
• The Company has obtained Rs. 1104.65 Lakh as unsecured loans that are repayable on demand.
• Certain discrepancies and non-compliances have been observed in some of the Company's corporate records, particularly concerning forms filed with the Registrar of Companies, taxation authorities, and other public authorities.
• The Company's insurance coverage is inadequate.
• There is a potential risk of inaccurate cost estimation under fixed-price EPC contracts.

IPO GMP

As of July 27, 2023, the Oriana Power IPO GMP is Rs. 95 (+/-). This indicates that investors have the potential to gain an expected return of 80.51% on their investment in this share.

Conclusion

The Oriana Power Limited IPO offers a compelling investment opportunity within the renewable energy sector. Backed by a solid track record, a diversified portfolio, and a capable leadership team, Oriana Power is poised for continued growth and prosperity. The positive performance in the grey market further enhances its appeal, presenting a promising opportunity for investors to gain substantial profits. Nevertheless, it is prudent to carefully evaluate all associated risks before making any investment decisions in the IPO.

Hope you enjoyed this IPO analysis. Tap to Apply

To Read the Prospectus of the Company Click Here to Download the RHP

Thank You for reading this blog.
Hope you loved the IPO analysis.
Please Comment Below with your feedback because Your feedback motivates us to deliver more such content.

Follow MUKUL AGRAWAL for the latest IPO news and reviews. You can connect with us on social media platforms like Twitter, Facebook, and Instagram. You can also subscribe to our YouTube Channel for the latest videos of the stock market.