Vikram Solar IPO, Upcoming IPO, Should you subscribe Vikram Solar IPO?: Vikram Solar Ltd (VSL), one of India’s largest solar photovoltaic (PV) module manufacturers, is set to hit the primary markets with its Rs 2,079-crore initial public offering (IPO) opening on August 19, 2025, and it will conclude on August 21, 2025. It consists of a fresh issue of Rs 1,500 crore and an offer for sale (OFS) of Rs 579 crore.
VSL has fixed the price band between Rs 315 and Rs 332 per share, with investors able to bid in lots of 45 shares and multiples thereafter. At the upper end of the price band, Vikram Solar is eyeing a post-issue market capitalisation of Rs 12,009 crore.
Expansion-driven capital raise
The company plans to deploy the fresh issue proceeds primarily toward capacity expansion:
- Rs 769.7 crore for Phase-I investment in VSL Green Power
- Rs 595.2 crore for Phase-II investment in the same subsidiary
- Rs 135.1 crore for general corporate purposes
Vikram Solar Earnings: How has the company performed financially?
Over the last three years, Vikram Solar has shown steady revenue growth and improving profitability.
In FY23, the company reported revenues of Rs 2,073 crore, with EBITDA of Rs 186 crore and a modest profit of just Rs 14 crore. While EBITDA margin of 9 per cent and PAT margin of only 0.7 per cent.
In FY24, revenues rose to Rs 2,511 crore, a 21 per cent YoY. EBITDA more than doubled to Rs 399 crore, while profit after tax jumped to Rs 91 crore.
This translated into a stronger EBITDA margin of 15.9 per cent and a PAT margin of 3.6 per cent.
In the current fiscal year (FY25), the momentum continued with revenues reaching Rs 3,423 crore, up 36 per cent YoY. EBITDA improved further to Rs 492 crore, while profit after tax climbed to Rs 140 crore.
Margins were stable, with EBITDA at 14.4 per cent and PAT at 4.1 per cent, though slightly lower than the FY24 EBITDA margin due to expansion-related costs.
| Particulars | FY23 | FY24 | FY25 |
| Revenue | Rs 2,073 crore | Rs 2,511 crore | Rs 3,423 crore |
| EBITDA | Rs 186 crore | Rs 399 | Rs 492 crore |
| Net profit | Rs 14 crore | Rs 91 crore | Rs 140 crore |
| EBITDA Margin | 9% | 15.9% | 14.4% |
| PAT Margin | 0.7% | 3.6% | 4.1% |
| RoE | 4% | 20.5% | 11.3% |
Should you subscribe? Check what SBI Securities’ analysts say
Analysts at SBI Securities have recommended to subscribing to the issue at the cutoff price, citing that the company 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 per cent to 2.5 per cent.
According to the brokerage, the valuation is in line with peers on an EV/EBITDA basis.
What does Vikram Solar do?
Vikram Solar is one of India’s largest solar PV module manufacturers, with 4.50 GW installed capacity. It has more than 17 years of industry experience and is expanding aggressively into:
- Solar PV modules – aiming for 20.50 GW capacity by FY27
- Solar cells – setting up 12 GW in Tamil Nadu by FY27
- Battery Energy Storage Systems (BESS) – greenfield project starting at 1 GWh, expandable to 5 GWh by FY27
