Vikram Solar Limited is launching its Initial Public Offering (IPO) to strengthen its capital base and support business growth, including funding capital expenditures. The IPO comprises a fresh issue of 4.52 crore shares aggregating to Rs. 1,500.00 crores and an offer for sale of 1.75 crore shares aggregating to Rs. 579.37 crores with a face value of Rs. 10 each.
GMP of Vikram Solar Ltd IPO
As of August 18th, 2025, the shares of Vikram Solar Ltd in the grey market were trading at a 15.66 percent premium. The shares in the Grey Market traded at Rs. 384. This gives it a premium of Rs. 52 per share over the cap price of Rs. 332.00.
Overview of Vikram Solar Ltd
Vikram Solar Limited is one of India’s leading solar energy providers and a globally recognized manufacturer of solar photovoltaic (PV) modules. Established in 2005 and headquartered in Kolkata, West Bengal, the company operates across the full solar value chain.
It manufactures high-efficiency solar PV modules, including mono and polycrystalline types, as well as advanced technologies such as bifacial, TOPCon, HJT, and n-type cells. The company also offers EPC (Engineering, Procurement, and Construction) services, providing turnkey solar power solutions for utility, commercial, industrial, and residential sectors. Additionally, Vikram Solar provides O&M (Operations & Maintenance) services, ensuring long-term plant performance and maintenance.
The company, with a manufacturing capacity of 4.5 GW in 2024, the company is expanding to 10.5 GW by FY 2026 and 15.5 GW by FY 2027. It operates NABL-accredited R&D laboratories to drive innovation in solar efficiency and durability. Vikram Solar has facilities in Falta (West Bengal) and Oragadam (Tamil Nadu).
Promoters of Vikram Solar Ltd
The promoters of Vikram Solar Ltd., including Gyansh Chaudhary, the Gyansh Chaudhary Family Trust, and Vikram Capital Management Private Limited, bring extensive expertise in the solar energy sector. Their experience in managing large-scale energy projects, coupled with a deep understanding of the renewable energy landscape, has played a pivotal role in the growth and success of Vikram Solar Ltd. Their leadership and strategic vision have been instrumental in positioning the company as one of India’s leading solar energy solutions providers.
Offer For Sale
The Offer for Sale includes the promoter and promoter group selling shareholders: Gyanesh Chaudhary is offering up to 6,000,000 equity shares, with a weighted average cost of acquisition of ₹1.85 per equity share of face value ₹10 each. Vikram Capital Management Private Limited is offering up to 1,500,000 equity shares, with a weighted average cost of acquisition of ₹8.50 per equity share of face value ₹10 each. Anil Chaudhary is offering up to 9,950,882 equity shares, with no specified weighted average cost of acquisition. The exact number of shares to be sold will be based on the final offer price.
Lead Managers of Vikram Solar IPO
Equirus Capital Private Limited and JM Financial Limited, Nuvama Wealth Management Limited, UBS Securities India Private Limited, Equirus Capital Private Limited, and PhillipCapital (India) Private Limited are acting as the Book Running Lead Manager. Link Intime India Private Limited is the registrar managing investor applications and allotment.
Objectives of the IPO Offer
The proceeds from Vikram Solar’s IPO will be used for the following objectives: ₹769.73 crore for partial funding of capital expenditure for the Phase-I Project, ₹595.21 crore for funding capital expenditure for the Phase-II Project, and the remaining funds for general corporate purposes.
Financial Analysis of Vikram Solar Ltd
Vikram Solar Ltd. has demonstrated strong financial performance over recent years. The company’s total income increased from ₹2,091.91 crore in FY23 to ₹2,523.96 crore in FY24, reflecting a growth of 21%, and further rose to ₹3,459.53 crore in FY25, marking a substantial 37% increase.
Profit after tax (PAT) also showed consistent growth, rising from ₹14.49 crore in FY23 to ₹79.72 crore in FY24, an increase of 450%, and further accelerating to ₹139.83 crore in FY25, reflecting a 75% growth.
Over the past three years, Vikram Solar’s revenue has grown at a CAGR of approximately 29.68%, while profit grew at a CAGR of around 90.25%, indicating improving operational performance and increasing profitability.
Vikram Solar Ltd Vs Peers
Vikram Solar has a solid income base of ₹34,595.27 million with an EPS of ₹4.61. The company’s Return on Net Worth (RoNW) stands at a healthy 11.26%, indicating good profitability and asset utilization.
In comparison, Premier Energies has the highest income among peers at ₹66,520.86 million, with a strong EPS of ₹21.35 and RoNW of 33.21%, reflecting superior profitability and capital efficiency. Despite the lower face value, it has a higher market price per share compared to Vikram Solar.
Along with it, Websol Energy shows a significant EPS of ₹36.66 and RoNW of 55.65%, indicating poor profitability and financial health. However, its market price per share is comparably higher to Premier Energies, despite its weaker financial performance.
Vikram Solar Ltd Strengths and Weaknesses
Strengths
- The company is one of the largest Indian solar PV module manufacturers with 3.50 GW operational capacity as of March 31, 2024.
- It has a strong R&D focus with robust quality control systems.
- They provide End-to-end service capabilities (Manufacturing → EPC → O&M).
- The company is growing its international presence with expansion plans in the United States through a JV (VSK Energy LLC).
Weakness
- Revenue Dependency on Solar PV Modules: A decline in demand for solar photovoltaic modules, which account for 97.34% of revenue in FY24, could negatively impact business, revenue, and profitability.
- Customer Dependency Risks: Revenue from the top five and top ten customer accounts for 76.13% and 89.38%, respectively. Any adverse changes in customer relationships could affect financial performance.
- Manufacturing Facility Expansion Risks: The success of the new Tamil Nadu facility and the capacity expansion of existing plants is critical. Failure to expand cost-effectively could negatively impact operations.
- Raw Material Price Fluctuations: Price volatility in wafers, solar photovoltaic cells, and other raw materials could increase material costs, adversely affecting the financial condition and results of operations.
Conclusion
Vikram Solar Ltd.’s IPO presents a significant opportunity to invest in one of India’s leading solar energy providers, with a proven track record of growth and innovation in the solar PV module manufacturing sector. With a strong revenue base and impressive profit growth over recent years, the company is positioned for further expansion, both domestically and internationally. However, investors should consider potential market risks, competition, and the evolving dynamics of the solar industry before making investment decisions.
Written by Sridhar J
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