Vikram Solar IPO: Domestic MFs account for 52.39% anchor book size; issue to open today
Vikram Solar IPO anchor allotment: Notable participants include Kotak Mutual Fund, Nippon Mutual Fund, Goldman Sachs, Franklin Templeton Mutual Fund, and Morgan Stanley, among others.
- Aug 19, 2025,
- Updated Aug 19, 2025 7:25 AM IST
Vikram Solar Limited has successfully raised Rs 620.80 crore from anchor investors ahead of its initial public offering (IPO), scheduled to open for public subscription on August 19, 2025. The company allocated 1.87 crore equity shares at Rs 332 per share to these investors on August 18, 2025.
The anchor book featured a mix of domestic mutual funds, foreign portfolio investors, and insurance companies. Notable participants include Kotak Mutual Fund, Nippon Mutual Fund, Goldman Sachs, Franklin Templeton Mutual Fund, and Morgan Stanley, among others. Domestic mutual funds accounted for 52.39% of the total anchor book size, with 97.96 lakh shares allocated across 22 schemes.
The IPO comprises a fresh issue of shares amounting to Rs 1,500 crore and an offer for sale of up to 1,74,50,882 equity shares by promoter and promoter group selling shareholders. Additionally, there is a reservation for eligible employees. The IPO aims to gather Rs 2,079.37 crore at the higher end of the price band.
The price band for the offer is set between Rs 315 and Rs 332 per equity share. Investors are invited to bid for a minimum of 45 shares and can do so in multiples thereafter. The book-building process will allocate not more than 50% of the net offer to qualified institutional buyers, 15% to non-institutional bidders, and 35% to retail bidders.
"Vikram Solar has a lower margin profile than its listed peers due to lack of backward integration and minimal export presence where the margins are usually higher by 2.0%-2.5%. Its installed solar module manufacturing capacity is set to expand by 4x in FY26 to 15.5 GW. Growth going ahead is expected to be driven by capacity expansion, robust domestic demand led by multiple levers, transition to solar captive plants in Commercial & Industrial segment and utility scale solar power capacity addition," said SBI Securities.
"At the upper price band of Rs 332, VSL is valued at 85.9x FY25 P/E and 21.4x EV/Ebitda on post issue capital. The valuation is in-line with peers on EV/Ebitda basis. Margin is expected to improve as the solar cell capacity comes onstream in FY27. We recommend investors to SUBSCRIBE to the issue at the cutoff price," the brokerage said.
JM Financial Limited, Nuvama Wealth Management Limited, UBS Securities India Private Limited, Equirus Capital Private Limited, and PhillipCapital (India) Private Limited are appointed as the book-running lead managers, with MUFG Intime India Private Limited serving as the registrar of the issue.
Out of the total allocation of 1.87 crore equity shares to the anchor investors, 97.96 lakh shares were allocated to 9 domestic mutual funds through 22 schemes, forming 52.39% of the total anchor book size.
The IPO is a mix of new share issues and shares offered for sale by the promoter group, with a price band determined at Rs 315 – Rs 332 per equity share, potentially raising Rs 2,079.37 crore.
"We recommend investors to SUBSCRIBE with a long-term view, as the company’s ambitious growth plans in solar and energy storage solutions provide a strong opportunity for value creation over time," said Canara Bank Securities. Last heard, the IPO was commanding a grey market premium (GMP) of Rs 54 apiece.
Investors can bid for shares from August 19 to August 21, 2025.
Vikram Solar Limited has successfully raised Rs 620.80 crore from anchor investors ahead of its initial public offering (IPO), scheduled to open for public subscription on August 19, 2025. The company allocated 1.87 crore equity shares at Rs 332 per share to these investors on August 18, 2025.
The anchor book featured a mix of domestic mutual funds, foreign portfolio investors, and insurance companies. Notable participants include Kotak Mutual Fund, Nippon Mutual Fund, Goldman Sachs, Franklin Templeton Mutual Fund, and Morgan Stanley, among others. Domestic mutual funds accounted for 52.39% of the total anchor book size, with 97.96 lakh shares allocated across 22 schemes.
The IPO comprises a fresh issue of shares amounting to Rs 1,500 crore and an offer for sale of up to 1,74,50,882 equity shares by promoter and promoter group selling shareholders. Additionally, there is a reservation for eligible employees. The IPO aims to gather Rs 2,079.37 crore at the higher end of the price band.
The price band for the offer is set between Rs 315 and Rs 332 per equity share. Investors are invited to bid for a minimum of 45 shares and can do so in multiples thereafter. The book-building process will allocate not more than 50% of the net offer to qualified institutional buyers, 15% to non-institutional bidders, and 35% to retail bidders.
"Vikram Solar has a lower margin profile than its listed peers due to lack of backward integration and minimal export presence where the margins are usually higher by 2.0%-2.5%. Its installed solar module manufacturing capacity is set to expand by 4x in FY26 to 15.5 GW. Growth going ahead is expected to be driven by capacity expansion, robust domestic demand led by multiple levers, transition to solar captive plants in Commercial & Industrial segment and utility scale solar power capacity addition," said SBI Securities.
"At the upper price band of Rs 332, VSL is valued at 85.9x FY25 P/E and 21.4x EV/Ebitda on post issue capital. The valuation is in-line with peers on EV/Ebitda basis. Margin is expected to improve as the solar cell capacity comes onstream in FY27. We recommend investors to SUBSCRIBE to the issue at the cutoff price," the brokerage said.
JM Financial Limited, Nuvama Wealth Management Limited, UBS Securities India Private Limited, Equirus Capital Private Limited, and PhillipCapital (India) Private Limited are appointed as the book-running lead managers, with MUFG Intime India Private Limited serving as the registrar of the issue.
Out of the total allocation of 1.87 crore equity shares to the anchor investors, 97.96 lakh shares were allocated to 9 domestic mutual funds through 22 schemes, forming 52.39% of the total anchor book size.
The IPO is a mix of new share issues and shares offered for sale by the promoter group, with a price band determined at Rs 315 – Rs 332 per equity share, potentially raising Rs 2,079.37 crore.
"We recommend investors to SUBSCRIBE with a long-term view, as the company’s ambitious growth plans in solar and energy storage solutions provide a strong opportunity for value creation over time," said Canara Bank Securities. Last heard, the IPO was commanding a grey market premium (GMP) of Rs 54 apiece.
Investors can bid for shares from August 19 to August 21, 2025.