Fujiyama Power Systems re-enters IPO arena with Rs 600 crore offering

Fujiyama Power Systems, a prominent Noida-based player in the Indian rooftop solar industry, has once again filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) as it prepares to raise funds through an Initial Public Offering (IPO). The offering comprises a fresh issue of shares up to Rs 600 crore and an offer-for-sale totalling up to 20 million shares by promoter selling shareholders. Notably, the IPO includes a reservation and discount for eligible employees, enhancing its appeal. This strategic move aims to bolster Fujiyama's manufacturing capabilities and repay certain debts.

The net proceeds from the fresh issue are earmarked to establish a manufacturing facility in Ratlam, Madhya Pradesh, and to manage certain outstanding borrowings. The company is also focusing on general corporate purposes. The IPO is structured through a book-building process, with allocations designated for qualified institutional buyers, non-institutional bidders and retail individual bidders. Motilal Oswal Investment Advisors and SBI Capital Markets have been appointed as the lead managers for the issue, while MUFG Intime India serves as the registrar. The equity shares will be listed on both BSE and National Stock Exchange.

Fujiyama Power Systems is renowned for its comprehensive range of solar products, including solar panels, inverters, and batteries. With robust R&D capabilities, the company has pioneered innovations such as the SMT-based inverter with a single card, a first in India. Its brands, UTL Solar and Fujiyama Solar, command a strong presence, supported by a vast distribution network spanning over 480 distributors, 3,600 dealers, and 1,000 exclusive 'Shoppe' franchisees. Fujiyama's commitment to quality and performance is underscored by its recognition as ;India's largest off-grid inverter company in 2019 and 'Most preferred solar energy brand' in 2020.

The company's strategic focus on innovation is evident in its development of products like hybrid solar systems and electric vehicle chargers. Fujiyama has received key certifications from the Ministry of New and Renewable Energy, the Bureau of Indian Standards, and State Nodal Agencies—credentials that are vital for government tenders and subsidies. The company serves both domestic and international markets, including the USA, Bangladesh, and the UAE, establishing it as a trusted name in the industry. Recently, Fujiyama was awarded the 'Renewable Energy Excellence Award Solar Battery Manufacturing' by the Indian Chamber of Commerce, further solidifying its industry standing.

The IPO will open opportunities for investors across categories, with significant reservations for institutional buyers and retail investors. The offering highlights Fujiyama's dedication to expanding its manufacturing infrastructure and enhancing product offerings. The company’s strategic investments in technology and infrastructure aim to maintain its leadership in the solar industry, both domestically and internationally. With a legacy of over 28 years, Fujiyama continues to push the envelope in solar innovation and market reach.