Vikram Solar is one of India’s largest pure play Solar PV module manufacturers, in terms of operational capacity. Separately from solar PV module sales, it has established a sustainable EPC and O&M business division, which are aimed at providing forward integrated full-life-cycle services to its customers.

Its portfolio of solar energy products consists of the following high-efficiency solar PV modules: (i) p-type monocrystalline silicon based Passivated Emitter and Rear Contact modules; (ii) N-Type monocrystalline silicon modules; and (iii) n-type monocrystalline silicon based heterojunction technology modules; all of these being either bifacial (glass-to-glass/ glass-to-transparent back sheet) or monofacial (glass-to-white/black back sheet) modules. Its products are also differentiated based on the cell size. Particularly, its latest generation solar PV modules (including those under testing) have wattages between 395Wp and 735Wp rating. It offers PV modules with efficiencies range between 20.23% and 23.66%, in line with the products available in market with similar technology.

The company has more than a decade of experience in executing EPC projects for solar plants and as of March 31, 2025, have more than 200 projects executed or are under execution with an aggregate capacity reaching to 1.41 GW. Meanwhile, it provides O&M services primarily for its executed EPC projects as bundled value-add services, which are taken up by most EPC projects. However, in contrast to solar PV module sales, EPC and O&M services will not be the focus of the business and operations going forward.

With more than 17 years of experience producing solar PV modules Vikram Solar was one of the first few players listed for solar modules with half cut cell technology, according to the first Approved List of Modules and Manufacturers (ALMM) notified by MNRE in March 2021. It has an ALMM enlisted capacity of 2.85 GW as of Jun 30, 2025.

Existing manufacturing facilities of the company are strategically located at Falta SEZ in Kolkata (West Bengal) and Oragadam (near Chennai, Tamil Nadu) with access to ports, rail and roads, helping it to facilitate both its domestic as well as international operations. The aggregate installed capacity of these two plants is 4.5 GW of solar modules. To meet growing demand, it is currently undertaking significant green-field and brownfield expansion plans, which are expected to increase its installed solar PV module manufacturing capacity to up to 15.50 GW by Fiscal 2026 and up to 20.50 GW by Fiscal 2027.

Furthermore, it is strategically backward integrating into the solar value chain by establishing a solar cell manufacturing facility with two units, 3.00 GW and 9.00 GW, in Gangaikondan (Tamil Nadu) by Fiscal 2027. It also aims to start with a greenfield project for battery energy storage system (BESS) with an initial capacity of 1.00 GWh in Tamil Nadu which is expandable to 5.00 GWh in Fiscal 2027, representing a strategic diversification to capitalize on the growing demand for BESS along with positioning the company as a leader in energy generation and storage.

Its key domestic customers include prominent government entities, such as National Thermal Power Corporation, Neyveli Lignite Corporation Limited and Gujarat Industries Power Company Limited, and large private independent power producers (IPPs), such as ACME Cleantech Solutions Pvt. Ltd., Adani Green Energy Limited, AMPIN Energy Transition Private Limited, Azure Power India Private Limited, JSW Energy Limited, First Energy 7 Private Limited and Rays Power Infra Private Limited, among others.

Solar PV modules of the company are used for projects in various countries such as the United States, Canada, Belgium, Germany, United Kingdom, Greece, Nepal and UAE. It has supplied solar PV modules to customers in 39 countries, as of March 31, 2025. Since its inception up to March 31, 2025, the company have shipped over 7.12 GW of solar PV modules globally (including India). Outside of India, it has a sales office in the United States, and a procurement office in China. Exports as of Fiscal 2025, Fiscal 2024 and Fiscal 2023 represented 1.00%, 61.58%, and 21.63% of total revenue, respectively.

As of March 31, 2025, it had an order Book of 10,340.82 MW (which is 2.30 times its total rated capacity as of Fiscal 2025), of which 6,424.93 MW comprise projects/operations which are already under execution and 3,915.89 MW comprise projects which are yet to be executed. In CY 2024, it has won marquee orders to supply modules to large projects such as the 326.00 MW project developed by GIPCL for the Khavda Renewable Energy Park—a project in the Great Rann of Kutch, Gujarat, 397.70 MW project developed by NTPC Renewable Energy in Gujarat, 393.90 MW project developed by NLC India in Gujarat and 251.25 MW developed by GIPCL in Gujarat Hybrid Renewable Energy Park in Kutch, Gujarat.

In addition, it has 200MW+ orders each from 57 AMPIN Energy and Sterling and Wilson in CY 2024. In CY 2024, it won a 1,000 MWp order for supply of high-efficiency solar PV modules, a 112.73 MW solar module order for multiple project sites in Tamil Nadu and Uttar Pradesh. It received an order from Adani Green Energy Limited in March 2025 as well. Furthermore, in its bid to expand presence in the C&I segment, it won 1.40 GW orders from two C&I solutions providers.

The Issue

The IPO comprises offer for sale (OFS) of 17450882 equity shares and fresh issue of equity shares, aggregating to Rs 1500 crore. The OFS is sale by the promoter-shareholders: 6000000 equity shares by Gyanesh Chaudhary, 9950882 equity shares by Anil Chaudhary, and 1500000 equity shares by Vikram Capital Management, a promoter group company. On post issue expanded equity Anil Chaudhary will hold 0% stake, Gyanesh Chaudhary 2.84% and Vikram Capital 30.91%.

Objects of the Issue

Of the net proceeds from the fresh issue, about Rs 769.73 crore will be used to part funding of capital expenditure through investment in VSL Green Power (a WoS of the company) for the Phase I Project; Rs 595.208 crore for funding capital expenditure through investment in VSL Green Power (a WoS of the company) for the Phase II Project and balance for general corporate purposes.

Strengths

One of the largest Indian solar PV module manufacturers with 4.50 GW operational capacity and strong presence in domestic as well as international markets.

The order book as of March 31, 2025, stood at 10340.82 MW up from 4376.16 MW, a year ago.

The integrated 3.00 GW solar cell and 3.00 GW solar module manufacturing facility under Phase I at Gangaikondan have received a LoA under PLI scheme on April 18, 2023, and thus will be entitled to receive certain subsidies over five years from the scheduled commercial operations date of the facility.

Emphasis on adoption and use of domestically produced solar products especially in various GOI schemes such as PM-KUSUM Scheme, the CPSU solar power project scheme and the recent Grid Connected Solar Rooftop Programme that emphasis on utilization of DCR (domestic content requirement) solar modules.

Government projects are permitted to procure solar modules of certain quality and specifications only from a limited number of select suppliers identified in the ALMM identified by the MNRE.

Importers of PV such as the United States are implementing several policies throughout time to reduce their reliance on China for PV products by introducing tariff barriers such as anti-dumping duties. Upcoming 3GW US Solar PV module manufacturing capacity, that is expected to be commissioned in FY27 will provide the company easier access to its existing customers in the United States and to further take advantage of the (United States) Inflation Reduction Act which has allocated approximately USD 400 billion for clean energy.

Weaknesses

Market for solar PV modules is intensely competitive and continuously evolving in-terms of technology. Moreover, prices of solar PV modules continue to slide with technology evolution as well as market oversupply scenario.

The Top 5/10 customers accounted for 77.50%/88.72 in FY25 and 76.13%/89.38% in FY24.

Non-availability of wafers, solar photovoltaic cells and other raw materials at fair price could adversely affect the operations and profitability.

Growth in the medium term largely depends on its ability to build a new manufacturing facility under its wholly owned subsidiary VSL Green Power Private Limited, in Tamil Nadu which is being proposed to be set up in two phases.

Reduction/removal of, exemption of, elimination or expiration of, government subsidies and economic incentives to promote solar energy and domestic production could reduce demand for solar modules.

The statutory auditor has included certain emphasis of matters in the report or qualification or adverse remark on the financial statements for FY25 regarding safeguard duty amounting Rs 148.52 crore, which was considered receivable.

The capacity utilization was 78.12%, 48.09%, and 39.51% in FY25, FY24 and FY23 respectively

Exports may be dependent on the EXIM policies passed by the governments of importing countries.

Has no prior experience in the manufacturing of battery energy storage systems

Significant dependence on projects awarded by government entities and public sector undertakings under competitive bidding routes.

Continues to upgrade technology in line with or ahead of the industry to meet customer expectations.

Restrictions or import duties levied on raw materials used by the company or non-availability or disruptions in supply will adversely affect its manufacturing operations. The cost of materials imported from China, East Asian and South-East Asian countries accounted for 80.68% (in FY25) and 61.42% (in FY24) of total cost of purchases.

Intense competition in domestic market from other Indian solar cell and module manufacturers as well as solar cell and module manufacturers from China and Southeast Asia.

Certain of its corporate records relating to share transfers involving its promoters and members of promoter group are not traceable.

Exchange rate fluctuations may adversely affect results of operations.

Has in the past entered many related party transactions and may continue to enter related party transactions in the future on an arm’s length basis.

Prior to the date of this Red Herring Prospectus, Promoter/ promoter group company i.e. Gyanesh Chaudhary, Vikram Capital Management and Gyanesh Chaudhary Family Trust, Vikram India and Anil Chaudhary had pledged certain equity shares held by them. The pledge on such equity shares has been released prior to filing of this RHP and subject to compliance with the SEBI ICDR Regulations, requisite number of equity shares shall be re-pledged post the allotment.

Valuation

Consolidated re-stated revenue for fiscal ended FY25 stood higher by 36% to Rs 3423.45 crore. With the OPM contracted by 150 bps to 14.4%, the growth at OP was restricted at 23% to Rs 492.01 crore. After accounting for higher other income as well as lower interest and depreciation cost as proportion to sales, the PBT was up by 83% to Rs 217.36 crore. Finally, net profit was up by 75% to Rs 139.83 crore.

On expanded equity (at the upper price band) the EPS for FY2025 was Rs 3.9. The P/E at the upper price band works out to 85.1 times its FY25 EPS. The company quotes at a P/BV of 4.4 times. On FY25 sales, the company trades at 3.5 EV/sales.

Premier Energies, an integrated solar PV manufacturer with an operational capacity of 5.1 GW of solar module and 2 GW of solar cell capacity quotes at PE of 48.1 times and price/BV of 16 times. Similarly, Waaree Energy, an integrated solar PV manufacturer with an operational capacity of 15 GW of solar module and 5.4 GW of solar cell capacity quotes at PE of 45.2 times and price/BV of 8.9 times. Websol Energy Systems, a small player with an installed capacity of 0.6 GW of solar modules and 0.60 GW solar cell capacity quotes at PE of 38.3 times and price/BV of 21.3 times. Premier Energies, Waaree Energy and Websol Energy Systems quote at EV/sales of 6.9 times, 5.4 times and 10.7 times, respectively.