Solarium Green IPO GMP, Price, Date & Review

Solarium Green IPO-Complete Overview

Solarium Green IPO under the SME IPO category is a book-build issue of Rs.105.04 Cr (55 lac Shares) by Solarium Green Energy Limited, which was incorporated in 2015, and embraces the art of Solar Solutions. 

The company falls in the category of rendering full-fledged solar solutions like designing, engineering, procurement, construction, testing, commissioning, transmission systems, and Operation and Maintenance for solar projects for houses, commercial works, industrial works, and government procurement.

The company offers turnkey EPC (Engineering, Procurement, and Commissioning) contracts covering site assessment, technology evaluation, engineering, supply chain management, construction, logistics, manpower financial planning, and warranties for solar projects.

Business Models:

Design and Build: The company is in rooftop installations for residential solar shopping, utility-side rooftop, and ground-mounted projects, and government tenders for all sorts of renewables, including hybrid and grid-connected installations. 

Sale of Solar Products: The company sells solar products such as PV modules, inverters, and ABT meters, procures items from accredited vendors, and manufactures polycrystalline solar modules for both turnkey projects and direct customer supply.

 

 

 

 

Solarium Green IPO Overview

This Solarium Green IPO date is 06 February 2025, and its ‘initial public offering’ will end on 10 February 2025.    

This Rs.105.04 crore new SME IPO comprises a totally fresh issue of 55 lac Shares.

This upcoming IPO date is on 06 Feb 2025. The Solarium Green IPO Price is Rs.181 to Rs.191 for each Share. 

The expected IPO listing date is 13 Feb 2025, and the listing at BSE and SME.

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Company Financial

(Amount in Cr)

 

Cash Flows

The cash flows for various activities are mentioned below:

(Amount in lac)

 

Business-wise Revenue Breakdown 

(Amount in lac)

 

State-wise Revenue Breakdown 

(Amount in lac)

(Source: RHP)

 

 

The Objective of The Issue

• To fulfill the need for working capital.

• General corporate purposes.

 

Peers of Solarium Green Ltd.

 

Evaluation

The IPO price is Rs.181 to Rs.191 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.10.39 from the last year, the resulting P/E ratio is 18.38x.

Considering the weighted EPS of Rs.5.81 for the last three years, the P/E ratio is 32.87x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 36.74.

In simple words, the P/E ratio of this IPO (18.38x), compared with the industry’s average P/E of 36.74x, has an undervaluation (on a P/E ratio basis only). Hence the price of the Share seems fully priced for the investors when considered based on the average P/E ratio of the industry.

 

IPO's Strengths

• Outward scaling and integration of operations for renewable energy projects.

• Diverse portfolio with a credible domestic presence across the globe.

• Strong bond with customers and suppliers.

• A seasoned management team with regional industry experience.

 

IPO’s Weaknesses

• Geographical Concentration Risks - Revenue diversification is limited since a large part of revenue is earned from operations in Gujarat.

• Dependency on Key Clients - Losing some of the important clients will badly harm the financial performance of the business.

• Supplier Concentration Risks - A high proportion of the important raw material and constituent parts is purchased from a few sources. Any unscheduled interruptions in supply or problems with quality may affect the performance of the projects in terms of execution and profits.

• Regulatory and Compliance Risks - Any shifts in government policies, especially towards renewables, can create significant issues for the operations. Due to certain changes in law, the company had to stop making polycrystalline solar modules.

 

Solarium Green IPO GMP 

Solarium Green IPO GMP has not started yet as of 03 Feb 2025.

IPO Timetable (Tentative)

The IPO date is February 06, with allotment on February 11, refund initiation on February 12, and listing on 13 February 2025.

Solarium Green IPO Details 

The IPO with a Face Value of Rs.10 per share offers a total issue size of 54,99,600 Shares (Rs.105.04 Cr).

 

Solarium Green IPO Lot Details 

The Solarium Green Energy Limited IPO allows retail investors to invest in a minimum and maximum of 1 Lot (600 Shares) amounting to Rs.1,14,600 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (1200 Shares) amounting to Rs.2,29,200.

 

IPO Reservation (% of Net Issue)

 

Promoters And Management of Solarium Green Ltd.

• Ankit Garg

• Pankaj Vallabhbhai Gothi
  
  

 

IPO Lead Managers

Beeline Capital Advisors Pvt Ltd.

Dividend Policy

The company has not declared a dividend in the last three years.

Conclusion

It is an opportunity presented by Solarium Green Energy's IPO in the very fast-growing renewable energy sector. There is a strong business model to back it up. Joining the business is management-experienced, able, and most importantly such thought. In comparison to industry peers, this IPO seems to be undervalued, However, considerations on risks like geographical concentration, client dependence, and regulatory uncertainties must also be considered.