Solarium Green IPO Listing: Stock lists at 6% premium on BSE SME

Solarium Green IPO Listing

Solarium Green IPO Listing: Premium Entry for ₹191 Shares, Surges to Upper Circuit on Debut

The highly anticipated Solarium Green IPO opened for subscription from February 6th to February 10th, 2025, raising a total of ₹105.04 crore.

Today, the company’s shares made a remarkable debut on the BSE SME platform, experiencing a strong upward movement from the outset.

This IPO has generated significant interest, with Solarium Green, a company specializing in solar energy projects, seeing its shares listed at ₹202.00, which marked a 5.76% gain over the issue price of ₹191.

Shortly after the listing, the shares surged to the upper circuit limit of ₹212.10, maintaining this level throughout the trading session.

By the end of the first day of trading, the company’s shares closed at ₹212.10, delivering a 11.05% return for IPO investors on their investment.

Overview of Solarium Green IPO Subscription

The Solarium Green IPO was met with overwhelming investor demand. The IPO was subscribed a total of 13.49 times, demonstrating strong market confidence in the company’s future prospects. The various segments of the IPO were subscribed as follows:

• The Qualified Institutional Buyers (QIB) segment, which is reserved for large institutional investors, was subscribed 8.83 times.
• The Non-Institutional Investors (NII) segment, which caters to high-net-worth individuals (HNIs), was subscribed 18.04 times.
• The Retail Investor portion, which was open to individual investors, was subscribed 5.07 times.

The IPO involved the issuance of 54,99,600 new shares, each with a face value of ₹10. These shares were offered at an issue price of ₹191 per share, and the funds raised will be used to fuel the company’s growth initiatives.

The strong oversubscription highlights the investor optimism surrounding the company’s position in the growing renewable energy sector.

Performance and Gains for IPO Investors

Solarium Green’s share price has had an impressive debut on the stock market. Upon listing, the shares were priced at ₹202.00, offering an instant 5.76% gain to investors who had bought at the issue price of ₹191. Investors who subscribed to the IPO could see that their shares appreciated almost immediately.

The surge in share price did not stop there. As trading continued, the stock hit the upper circuit limit of ₹212.10, reflecting a strong demand for the shares.

The stock maintained this upper circuit level throughout the day’s trading, closing at ₹212.10. For IPO investors, this resulted in an 11.05% gain by the end of the first trading day.

This solid performance has generated significant excitement among retail and institutional investors alike, bolstering confidence in the future performance of the company.

How the Money from the IPO Will Be Used

The funds raised from the IPO, amounting to ₹105.04 crore, are crucial for Solarium Green’s future growth and operational development.

The company plans to allocate these funds primarily toward meeting its working capital requirements and other general corporate purposes.

Working capital is essential for the company’s day-to-day operations and for supporting its ongoing and future solar projects.

In addition to its operational needs, the funds will help Solarium Green strengthen its market position and invest in further expanding its portfolio of solar energy projects.

The company has established itself as a significant player in the renewable energy space, and these funds will allow it to capture even more market share, contributing to India’s clean energy transition.

About Solarium Green

Founded in 2015, Solarium Green specializes in the implementation of turnkey EPC (engineering, procurement, and commissioning) contracts for solar energy projects.

The company operates in the rapidly growing solar sector, which is being driven by the increasing global demand for clean and sustainable energy.

Solarium Green has positioned itself as a reliable and innovative player in the sector, providing solutions for both residential and commercial clients.

Over the past three years, the company has successfully completed a significant number of solar energy installations across various sectors. These include:

• 11,195 residential projects
• 172 commercial and industrial projects
• 17 government projects

The company’s ability to deliver solar projects at scale has helped establish it as a leading provider of renewable energy solutions.

In addition to solar installations, Solarium Green also provides post-installation maintenance services, ensuring that its customers enjoy long-term operational efficiency.

Financial Performance of Solarium Green

Solarium Green’s financial performance has experienced notable fluctuations over the past few years, with the company showing both challenges and recovery. Here’s a closer look at its performance:

• FY 2022: Solarium Green reported a net profit of ₹2.05 crore, a strong figure that indicated the company’s solid foundation and growth potential. Revenue for the fiscal year stood at ₹167.89 crore, highlighting the company’s ability to generate significant sales.
• FY 2023: The company’s performance took a slight dip, with a net profit of ₹1.74 crore. Revenue dropped to ₹98.93 crore, a decrease from the previous year, which could be attributed to market conditions or project delays. However, despite this decline, the company’s position remained strong in the market.
• FY 2024: Solarium Green showed a strong recovery, with its net profit surging to ₹15.59 crore. Revenue rebounded to ₹177.81 crore, signaling the company’s successful efforts in revitalizing its operations and increasing its market share. This sharp profit increase demonstrated the company’s ability to bounce back from earlier setbacks and take advantage of the expanding renewable energy market.

In the first half of FY 2024-25 (April-September 2024), Solarium Green reported a net profit of ₹7.55 crore and revenue of ₹82.34 crore, continuing its positive momentum as it gears up for further expansion.

Growth Prospects and Future Outlook

The outlook for Solarium Green is highly promising. The Indian government has set ambitious targets for solar energy installation as part of its commitment to transitioning to cleaner energy sources.

Solarium Green, with its robust track record and specialized expertise in solar project execution, is well-positioned to capitalize on these opportunities.

The company’s diversified project portfolio and growing customer base also offer solid prospects for future revenue growth.

With the funds raised from the IPO, Solarium Green plans to further expand its project pipeline, making it a key player in the solar energy sector.

Additionally, the company’s focus on operational efficiency and maintaining high-quality standards should continue to enhance its competitiveness.

Final Remarks

The Solarium Green IPO has proven to be a resounding success, with shares experiencing a strong debut and significant initial gains for investors.

The company’s future looks bright as it continues to expand its presence in the renewable energy sector.

With a solid financial recovery, a proven track record in solar project implementation, and strategic use of the funds raised, Solarium Green is well-positioned to continue its growth trajectory in the coming years.

Investors who participated in the IPO are already seeing positive returns, and the company’s long-term prospects appear to be highly favorable.