Is the Vikram Solar IPO Worth It?

The Vikram Solar IPO has attracted growing interest as India’s renewable energy sector continues to gain momentum. Priced between ₹315 to ₹332 per share, the company aims to raise ₹2,079 crore, with ₹1,500 crore through fresh equity for capacity expansion and ₹579 crore via an offer-for-sale.

While the IPO saw a modest start with only 29% subscription on Day 1, enthusiasm picked up by Day 2, crossing over 2 times subscription. This signals a steady rise in investor confidence, though subscription levels remain moderate compared to other recent IPOs.

Vikram Solar IPO Subscription Status

As of August 20, 2025, subscription data shows a mixed trend:

• Retail investors: Strong participation
• Non-institutional investors (NIIs): Solid interest
• Qualified institutional buyers (QIBs): Relatively muted response initially
• Overall subscription: Over 2 times by Day 2

This reflects cautious optimism, especially from institutional players waiting to assess valuation risks.

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Vikram Solar IPO GMP Today

The Grey Market Premium (GMP) offers insights into expected listing performance. For Vikram Solar IPO:

• GMP softened from ₹68 to ₹48.
• Based on the upper price band (₹332), the expected listing price is near ₹380.
• This implies a potential 14–15% listing gain for early investors.

Although the GMP has cooled, it still points to healthy short-term listing prospects.

Vikram Solar’s Business and Growth Prospects

Vikram Solar is one of India’s largest solar photovoltaic (PV) module manufacturers, with an installed capacity of 3.5 GW. It serves marquee clients like NTPC and ACME.

Key growth drivers:

• Expanding demand under India’s renewable energy programs.
• Planned solar cell manufacturing in FY27, expected to boost profitability.
• Established track record in the solar industry with strong execution capacity.

Risks and Valuation of Vikram Solar IPO

Despite strong sector tailwinds, investors should weigh certain risks:

• High valuations: P/E ratio of ~85.9x FY25 earnings at the upper price band.
• Revenue dependency: Heavy reliance on solar PV module sales.
• Margin pressures: Competition and raw material supply risks could impact profitability.

Brokerages like SBI Securities recommend subscribing, citing long-term growth potential, but caution about valuation and execution challenges.

Final Thoughts

The Vikram Solar IPO offers investors a chance to participate in India’s renewable energy growth story. With expected 14–15% listing gains and strong government backing for solar expansion, it presents an attractive growth opportunity. However, high valuations and execution risks mean this IPO is better suited for investors with a medium- to long-term outlook rather than short-term speculators.

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FAQ

What is the price band of the Vikram Solar IPO?

The IPO is priced between ₹315 to ₹332 per share.

How much is Vikram Solar planning to raise through the IPO?

The company aims to raise ₹2,079 crore, including a fresh issue of ₹1,500 crore and an offer-for-sale of ₹579 crore.

What is the GMP of Vikram Solar IPO today?

The grey market premium (GMP) is around ₹48, indicating an expected listing gain of 14–15%.

When will the Vikram Solar IPO close?

The IPO closes on August 21, 2025.

Should investors apply for Vikram Solar IPO?

Brokerages recommend subscribing for long-term growth potential but advise caution due to high valuations and execution risks.