Solar91 Cleantech IPO: GMP, Date, price,& Overview

Solar91 Cleantech IPO-Complete Overview

Solar91 Cleantech IPO under the SME IPO category is a book-built issue of Rs.54.36 lac Shares by Solar91 Cleantech Limited, incorporated in 2015. It is engaged in the provision of Engineering, Procurement, and Construction (EPC) Solar Energy Solutions for commercial and industrial customers, with renewable energy systems in place to reduce their power consumption.

Its primary focus is on providing Distributed Renewable Energy solutions to investors and customers. rooftop solar solutions for the various industrial, commercial, and residential sectors, apart from open access, group captive solutions, agro PV, and distributed solar investment opportunities.

The company is developing solar projects under the Independent Power Producer (IPP) model and commenced work on projects under the Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan (PM Kusum) Scheme, a Government initiative for solarizing agricultural feeders.

The company has amassed an array of awards and was one of the leading players in Rajasthan and nationally in the Commercial and Industrial Solar PV sector.

Its Business Pertains to:

EPC Model: Provision of services to clients in commercial and industrial sectors.

Independent Power Producer (IPP) Model: Operate and maintain solar projects through its wholly owned subsidiaries.

Operations and Maintenance (O&M): Provide operation and maintenance services for the solar projects developed by them under the EPC and IPP model.

The company has been operational in 13 states across India, completing an EPC project in Kenya with a total commissioned capacity of more than 94 MW across 191 projects in India and 1 in Africa in 9 years.

Solar91 Cleantech IPO Overview

This Solar91 IPO date is 24 December 2024, and its ‘initial public offering’ will end on 27 December 2024. 

The Rs.106  crore new SME IPO comprises a wholly fresh issue of 54.36 lac Shares.

This upcoming IPO date is on 24 December 2024. The Solar91 Cleantech IPO Price is Rs.185 to Rs.195 for each Share. 

The expected IPO listing date is Wednesday, 01 January 2025, and listing at BSE and SME.

To open a demat account and apply for the IPO, Click Here.

Company Financial

The company’s revenue grew by 14% and PAT increased by 1060% during FYs ending 31 March 2024 and 31 March 2023.

(Amount in Lac)

 

Cash Flows

The cash flows for various activities are shown below:

(Amount in lac)

 

Geography-wise Revenue Breakdown  

(Amount in lac)

 

The Objective of the Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• As an Independent Power Producer (IPP), to cover the costs of investing in a subsidiary for the development of solar projects.

• To cover the costs of the company's working capital requirements.

• General corporate purposes.

 

Peers of Solar91 Cleantech IPO Ltd.

 

Note:-

The basic EPS of the peers is for the financial year ended on 31 March 2024.

Evaluation

The Solar91 Cleantech Limited IPO share price is  Rs.185 to Rs.195 for each Share

Evaluation of P/E Ratio

Considering the FY ended 31 March 2024 with an EPS of Rs.2.17 from the last year, the resulting P/E ratio is 89.86x.

Considering the weighted EPS of Rs.1.23 for the last three years, the P/E ratio is 158.53x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 80.20x.

 In simple words, the P/E ratio of this IPO (89.86x), compared with the industry’s average P/E of 80.20x, has an overvaluation (on a P/E ratio basis only). Hence the price of the Share seems aggressively priced for the investors when considered based on the average P/E ratio of the industry.

IPO's Strengths

• The locations are set for wide geography.

• Very specific cluster-based distributed solar EPC & IPP model.

• Strong order book given the fostering of national policy.

• Among the fastest turnaround times in the industry.

• In-house design team and government approvals.

• Digitally enable processes in the organization.
  
  
  

IPO’s Weaknesses

• There is no established market for the company's equity shares, therefore there is no assurance that the shares will trade actively or stable at a specific price after listing. This is the first public issue risk.

• Revenue dependence on a small number of clients: The company's revenue is mostly dependent on a small number of customers. This concentration poses a financial risk in the event of any reduction in revenue-generating activities by major customers

• Working capital issues: The way the company manages working capital cycles and capital for working capital requirements is a field of risk.

• The company's service delivery standards can not be overstated: It is very important to maintain high standards in all the services that a company provides. Any lapse could affect the image and trust of customers gravely.

• Market and industrial dynamics: These are factors such as the general volatility of markets and competition dynamics that are beyond the control of a company and thus have negative effects on operations and financial health. 

 

Solar91 Cleantech IPO GMP

Solar91 Cleantech IPO GMP today is Rs.55 as of 19 December 2024.

IPO Timetable (Tentative)

The IPO opening date is from December 24 to December 27, 2024, with allotment on December 30, refund initiation on December 31, and listing on January 01, 2025.

Solar91 Cleantech IPO Details 

The IPO with a Face Value of Rs.10 per share offers a total issue size of 54,36,000 Shares (Rs.106.00 Cr).

Solar91 Cleantech IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (600 Shares) amounting to Rs.117000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (1200 Shares) amounting to Rs.234000.

IPO Reservation (% of Net Issue)

Promoters And Management of Solar91 Cleantech Ltd.

• Mr. Prateek Agrawal

• Mr. Saurabh Vyas

• Mr. Sandeep Gurnani 

• Mr. Dhawal Gaurang Vasavada.
  
  

 

IPO Lead Managers

• Narnolia Financial Services Ltd.
  
  

Dividend Policy

The company has not paid dividends in any FYs.

Conclusion

Solar91 Cleantech IPO presents a golden opportunity for the investor community to grab this company, which has positioned itself in the niche of distributed renewable energy with strong credentials in solar EPC and IPP fields. The phenomenal growth in revenue and profitability across India, with a global horizon emerging for this company, would also create a substantial interest within the investor community. Although risks such as market volatility and client concentration exist, the valuation of the IPO is reasonably attractive as compared to industry averages.

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.

DISCLAIMER: This is NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions. 

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