Solarworld Energy Solutions IPO Should You Apply?

Introduction

The Solarworld Energy Solutions IPO has garnered significant attention in the market. With strong investor interest and promising indicators, potential investors are keen to understand the details before making a decision.

IPO Details

• Issue Size: ₹490 crore

• Price Band: ₹333 to ₹351 per share

• Lot Size: 42 shares

• Listing Date: Expected on September 30, 2025

• Listing Exchanges: BSE and NSE

• Subscription Period: September 23 to September 25, 2025

Subscription Status

As of Day 2:

• Overall Subscription: 4 times

• Retail Portion: Over 13 times

• Non-Institutional Investors (NII): 5.53 times

• Qualified Institutional Buyers (QIB): 2% 

Grey Market Premium (GMP)

The IPO is trading at a GMP of ₹66, indicating an expected listing price of approximately ₹407, suggesting a potential gain of around 16% from the upper price band 

Company Overview

Solarworld Energy Solutions Ltd specializes in providing comprehensive solar energy solutions, including engineering, procurement, and construction (EPC) services. The company operates through two models:

• CAPEX Model: Offers end-to-end project solutions with customer-owned assets.

• RESCO Model: Allows businesses to adopt solar power without upfront investment, reducing carbon footprint. 

Financial Highlights

• Revenue: ₹1,200 crore (FY 2024)

• Net Profit: ₹120 crore (FY 2024)

• EBITDA Margin: 18%

• Return on Equity (RoE): 15%

Pros of Investing

• Strong Subscription Demand: Indicates positive market sentiment.

• Attractive GMP: Suggests potential listing gains.

• Sustainable Business Model: Focus on renewable energy aligns with global trends.

• Established Client Base: Partnerships with reputed companies enhance credibility. 

Cons to Consider

• Regulatory Risks: Changes in government policies can impact operations.

• Market Volatility: IPOs can be subject to market fluctuations.

• Execution Risks: Successful implementation of projects is crucial for growth. 

How to Apply

Investors can apply for the IPO through:

• ASBA (Applications Supported by Blocked Amount) via banks.

• UPI (Unified Payments Interface) through mobile applications.

• Brokerage Platforms: Zerodha, Groww, Upstox, etc.

Conclusion

The Solarworld Energy Solutions IPO presents an opportunity for investors looking to capitalize on the growing renewable energy sector. While the strong subscription demand and attractive GMP are promising, potential investors should consider the associated risks and conduct thorough research before applying.