Vikram Solar IPO

Vikram Solar Limited, incorporated in 2005, is a leading Indian manufacturer of high-efficiency solar photovoltaic (PV) modules with a strong presence in both domestic and international markets. The company specializes in producing advanced solar modules, including p-type monocrystalline silicon-based PERC modules, and n-type monocrystalline silicon-based TOPCon and HJT modules, available in both bifacial and monofacial formats. In addition to manufacturing, Vikram Solar offers Engineering, Procurement, and Construction (EPC) services as well as Operations and Maintenance (O\&M) solutions, ensuring end-to-end project execution and long-term system performance optimization.

With manufacturing facilities located in Falta SEZ, Kolkata (West Bengal) and Oragadam, Chennai (Tamil Nadu), Vikram Solar has built a robust pan-India distribution network comprising 41 authorized distributors, 64 dealers, and 67 system integrators across 23 states and three union territories. Its client base includes major government bodies like NTPC and Neyveli Lignite Corporation, as well as large private IPPs such as ACME Cleantech Solutions. As of March 31, 2024, the company employs 1,513 full-time and 728 contractual workers, underscoring its significant operational scale and industry footprint.

Vikram Solar IPO Strengths

• Vikram Solar is recognized as India’s largest domestic manufacturer of solar photovoltaic modules, with an integrated presence spanning module manufacturing, EPC (Engineering, Procurement, and Construction), and O&M (Operations & Maintenance) services.
• Exports constituted 61.6% of FY24 revenue, with the United States accounting for 99% of export revenue, underscoring Vikram Solar’s established international market reach and demand.
• Vikram Solar has been consistently listed as a “Top Performer” in PVEL’s global PV module reliability scorecard, validating its commitment to quality and long-term durability.
• Alongside manufacturing, the company has executed over 1,400 MW in EPC projects and manages 700+ MW in O&M contracts, creating multiple recurring revenue streams beyond module sales.
• Vikram Solar is eligible for key government subsidies and the PLI (Production Linked Incentive) scheme, supporting expansion and competitiveness in domestic manufacturing.
• With active contributions to over 6 continents and a strategic focus on export and domestic markets, Vikram Solar is well-positioned to capitalize on global solar adoption trends and India’s energy transition roadmap.

Vikram Solar IPO Risks

• The business model is highly working capital intensive, with gross current assets standing at 280 days and a receivable collection period of 177 days in FY24, which could strain liquidity, especially if receivables get delayed.
• The solar module sector is highly competitive with strong domestic rivals (Adani, Waaree, Premier Energies) and global players, putting continuous pressure on pricing, margins, and market share.
• The company relies heavily on imported raw materials (e.g., polysilicon, aluminum), and global price volatility or supply chain disruptions can erode profitability and affect production schedules.
• Profitability is sensitive to shifts in government incentives, solar tariffs, and import/export policies; adverse regulatory changes or reduction in subsidies could impair earnings or competitiveness.
• With 61% of revenue coming from exports (mostly to the US), Vikram Solar is exposed to currency fluctuations that may impact reported profits. While hedging is used, parts of the exposure remain unhedged.
• Rapid changes in solar cell and module technology require ongoing investments; failure to keep pace could impact product relevance, reputation, and ability to secure orders.