Vikram Solar shares make a muted market debut amid Tariff concerns; debut at 2% premium

Shares of Vikram Solar made a muted Dalal Street debut on Tuesday, August 26 as the renewable energy player was listed at Rs 340 on BSE, a premium of 2.41 per cent over its issue price of Rs 332 apiece. Similarly, the stock kicked off-its maiden trading session with a premium of 1.81 per cent over the given issue price at Rs 338 on BSE.

Listing of Vikram Solar has been much below the expected lines. Ahead of stock market debut, shares of Vikram Solar were commanding a grey market (GMP) of Rs 38-40 apeice, suggesting a 11-12 per cent listing pop for the investors. The GMP stood at Rs 48-50 when the issue had closed for bidding.

Retail investors, who received a single lot of 45 equity shares made a profit of Rs 360 on their allotment. Similarly, HNI investors who had received 14 lots consisting of 630 equity shares made a profit of Rs 5,040 on their investment in the IPO.  

Vikram Solar's initial public offering (IPO), ran for bidding from August 19 to August 21, has garnered significant attention, with the issue being oversubscribed 54.63 times. The listing of Vikram Solar was marred by the Trump tariff concerns, thanks to its exposure in the US.

The Kolkata-based solar photovoltaic modules manufacturer offered shares at a price band of Rs 315-332 per share, with a lot size of 45 shares, raising a total of Rs 2,079.37 crore. This includes a fresh share sale of Rs 1,500 crore and an offer-for-sale of up to 1,74,50,882 equity shares worth Rs 579.37 crore.

The IPO received robust demand, fetching over 35.06 lakh applications and bids amounting to Rs 82,275 crore. Notably, the quota for qualified institutional bidders (QIBs) was subscribed 142.79 times, while non-institutional investors (NIIs) booked their allocation 50.90 times. The employee and retail investor portions were subscribed 4.84 times and 7.65 times, respectively.

Vikram Solar, incorporated in 2005, operates in three core areas: solar photovoltaic module manufacturing, engineering, procurement and construction (EPC) services, and operations and maintenance (O&M) of solar power installations. The IPO's success indicates positive market sentiment and confidence in the company's growth potential.

Book running lead managers for the IPO included JM Financial, Nuvama Wealth Management, Equirus Capital, UBS Securities India, and Phillip Capital India. MUFG Intime India served as the registrar of the issue. Brokerage firms had shown positive sentiment towards the offering.