Solarium Green Energy Limited is set to launch its initial public offering (IPO) on February 6, 2025, aiming to raise approximately ₹105.04 crores. The IPO will consist of a fresh issue of equity shares priced between ₹181 and ₹191, with a minimum market lot of 600 shares. Established in 2015, Solarium specializes in providing comprehensive solar solutions, including design, engineering, procurement, and maintenance services for residential, commercial, and government projects.
₹10
₹191
₹202
Expert Opinions
Market sentiment surrounding the Solarium Green IPO is highly positive, fueled by the increasing focus on renewable energy solutions and government initiatives promoting solar energy adoption. Company strengths include a comprehensive range of services in the solar sector, such as design, engineering, procurement, and maintenance, positioning Solarium as a key player in the market. Risks and challenges involve potential fluctuations in raw material costs and competition from established solar firms, which could impact profitability and market share.
Valuation analysis for FY 2024 shows a return on equity (ROE) of 124.38%, return on capital employed (ROCE) of 54.18%, and return on net worth (RoNW) of 76.69%, indicating solid financial health and operational efficiency. From a long-term investment perspective, Solarium Green Energy is well-positioned to capitalize on the growing demand for solar solutions.
Investor Considerations
Investors considering the Solarium Green IPO should analyze several key factors. Company performance and fundamentals show a significant improvement, with revenues increasing from ₹98.93 crores in FY2023 to ₹177.81 crores in FY2024, alongside a profit after tax of ₹15.59 crores, indicating effective operational management. The sector outlook is favorable, driven by the rising demand for renewable energy solutions as governments push for sustainable practices.
The IPO valuation reveals a price-to-book value of approximately 14.10, a profit after tax (PAT) margin of 8.79%, and a debt-to-equity ratio of 1.51, highlighting a strong financial position with no debt obligations. Growth prospects remain robust as the company aims to expand its project portfolio and enhance service offerings. However, potential risk factors include competition and fluctuations in solar panel prices. A long-term investment horizon is advisable as Solarium seeks to capitalize on the growing renewable energy market for sustained growth and profitability.
| Date | GMP | Trend |
|---|---|---|
| 11 Feb 2025 11.05 | ₹10 | Up |
| 10 Feb 2025 10.38 | ₹00 | Down |
| 09 Feb 2025 12.20 | ₹5 | Down |
| 08 Feb 2025 20.46 | ₹10 | --- |
| 07 Feb 2025 20.04 | ₹10 | --- |
| 06 Feb 2025 20.00 | ₹10 | Down |
| 05 Feb 2025 11.04 | ₹30 | --- |
| 04 Feb 2025 16.14 | ₹30 | Up |
| 03 Feb 2025 12.56 | ₹00 | --- |
FAQs
The Grey Market Premium showed excellent accuracy in predicting Solarium Green Energy’s listing performance. The GMP of ₹10 predicted a premium of 5.24% over the issue price, while the stock delivered a similar gain of 5.76%. With a minimal prediction error of just 0.50%, the GMP effectively captured both the direction and magnitude of the listing gains, proving to be a highly reliable indicator in this case.
Solarium Green IPO Current GMP is ₹10.
Solarium Green IPO Expected Returns is 5.23%.
Solarium Green IPO estimated listing price is ₹201.