New Listing Alert: Solar Solution Provider Get Listed on D-Street; Raising Rs 440 Crore via Fresh Issue & Rs 50 Crore via OFS

On Tuesday, shares of Solarworld Energy Solutions Ltd marked their debut on stock exchanges, that is BSE and the NSE. On BSE, the stock is listed at Rs 389 per share and on NSE, the stock is listed at Rs 388.50 per share. The IPO was oversubscribed 68.49 times overall. The QIB portion saw subscription at 74.24 times, followed by retail investors at 51.69 times and Non-Institutional Buyers (NIIs) at 68.21 times.

Solarworld Energy's Business Focus and IPO Details

Solarworld Energy Solutions Ltd. is an EPC-led solar solutions provider that has executed 46 projects totalling 336.17 MW (DC) across nine Indian states since 2014. As of July 31, 2025, the company has a robust consolidated order book valued at Rs 2,528 crore, providing strong revenue visibility. The company is raising Rs 490 crore via its IPO, which consists of a Fresh Issue of Rs 440 crore and Rs 50 crore (the breakdown is a little unclear from the text, but the total fresh issue size is Rs 490 crore). The price band for the issue is set at Rs 333–351 per share. The bulk of the fresh issue proceeds, specifically Rs 332.39 crore, will be invested in its subsidiary, Kartik Solarworld Pvt Ltd, to part-finance a new 1.2 GW TopCon cell facility, aiming for vertical integration.

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Financial Performance and Sector Growth

Solarworld Energy has rapidly scaled its financial performance. Revenue from Operations more than doubled from Rs 232.46 crore in FY23 to Rs 551.09 crore in FY25, representing a two-year CAGR of 33.34 per cent. Profitability has also significantly improved, with the EBITDA Margin rising from 10.44 per cent to 19.60 per cent, and Net Profit increasing from Rs 14.84 crore to Rs 77.05 crore over the same period. This growth aligns with the booming Indian solar sector, where CRISIL forecasts a massive 170–180 GW of new solar capacity additions between FY 2026 and FY 2030. The Solar EPC services market alone was worth Rs 49,380 crore in FY 2025.

Valuation and Key Risks

The IPO is priced at a P/E multiple of approximately 32.86x (post-issue based on FY25 earnings) and an EV/EBITDA of about 28.05x. This valuation is considered full, being richer than KPI Green Energy (26.3x P/E; 15.4x EV/EBITDA). Despite strong revenue and profit growth, two key risks stem from working capital management: Receivables have grown sharply at a CAGR of 58.14 per cent, reaching Rs 226.39 crore in FY25, and project delays/cancellations remain a constant threat in the tender-driven market.

Disclaimer: The article is for informational purposes only and not investment advice.