SolarWorld IPO: Strong Retail Interest On Final Subscription Day; High Demand Signals Bright Listing

SolarWorld Energy Solutions' initial public offering (IPO) is witnessing robust investor interest as it enters its final subscription day.

As of 11:30 a.m. on the last day of bidding, the IPO has been subscribed over seven times, with bids received for 6,38,82,042 shares against 80,93,092 shares on offer, according to BSE data.

Retail individual investors (RIIs) bid for 32,784,234 shares compared to 1,471,471 shares on offer. Non-institutional investors (NIIs) bid over 14 times the 1,471,471 shares on offer, while qualified institutional buyers (QIBs) bid for 132,678 of the 4,414,414 shares on offer.

Grey Market Indicators

The grey market price (GMP) for the IPO is at ₹56 per share. It indicates a listing price of ₹407 apiece at a premium of 15.95% over the upper limit of the IPO price band.

IPO Details     

The IPO aims to raise ₹490 crore, with ₹420 crore allocated for investment in its subsidiary KSPL to partially finance the Pandhurana Project, and ₹20 crore for general corporate purposes.

The IPO comprises a fresh issue of 1.25 crore shares worth ₹440 crore and an offer-for-sale (OFS) of 14 lakh shares amounting to ₹50 crore. The price band for the IPO is set between ₹333 and ₹351 per share.

The lot size for an application is 42, with a minimum investment required by a retail investor at ₹ 14,742.

Nuvama Wealth Management is the book-running lead manager, and MUFG Intime India is the registrar of the issue.

The tentative allotment date is September 26, and the stock is expected to be listed on September 30.

Analyst View: Apply

SEBI-registered analyst Aditya Hujband recommends applying for the IPO. He noted the company’s strengths, which include EPC expertise, a robust order book, financial efficiency, repeat clientele, a focus on innovation, and alignment with ESG principles.

However, it is not without risks. Fixed-price contracts, high receivables, vendor reliance, foreign exchange exposure, regulatory dependency, and intense competition, along with execution challenges in its new manufacturing venture, pose considerable challenges.

Company Details

SolarWorld Energy Solutions focuses on Engineering, Procurement, and Construction (EPC) services for solar power projects. The company caters to both large enterprises and businesses exploring cost-effective renewable energy adoption. Under its CAPEX model, SolarWorld handles complete solar project execution, from design and installation to commissioning, while ownership rests with the customer.

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