Vikram Solar IPO 2025: Key Insights & Analysis

Vikram Solar Limited is one of India's largest manufacturers of solar photovoltaic (PV) modules when measured by installed capacity. With over 15 years of industry experience, the company has a total installed manufacturing capacity of 3.5 GW as of the date of the DRHP, spread across two facilities in West Bengal and Tamil Nadu. It holds one of the largest enlisted capacities among pure-play non-captive manufacturers on the Ministry of New & Renewable Energy’s (MNRE) Approved List of Module Manufacturers (ALMM).

The company's product portfolio includes high-efficiency PV modules such as p-type monocrystalline PERC, n-type TOPCon, and n-type HJT modules. Vikram Solar has a significant domestic and international presence, having supplied over 5.4 GW of solar PV modules globally since its inception to customers in 39 countries as of March 31, 2024.

Table of Contents

1. Business Model
2. IPO Offer Structure
3. Objects of the Offer
4. Key Operational and Financial Metrics
5. Peer Comparison of Key Ratios
6. Market Landscape
7. Growth Drivers
8. Future Outlook
9. FAQs

Business Model

Vikram Solar Limited operates primarily as a manufacturer of solar photovoltaic (PV) modules, complemented by integrated solar energy solutions.

• Manufacturing: Vikram Solar is in the business of manufacturing solar PV modules, which are sold under various brand names, such as Suryava, Somera, Prexos, Paradea, and Hypersol.
• Sales and Distribution Channels: Vikram Solar targets both domestic and international markets. In its domestic base, it receives large orders from government entities and large private players. Its retail distribution network spans 41 authorised distributors, 64 dealers, and 67 system integrators. Internationally, it exports to 39 countries, substantially from the US markets. 
• Integrated Solar Energy Solutions: It also offers integrated solar energy solutions, including expertise in Engineering, Procurement, and Construction (EPC) and Operations and Maintenance (O&M).

IPO Offer Structure

The Initial Public Offering for Vikram Solar Limited is scheduled to open on September 25, 2025. The company aims to raise 2,079 crore through a combination of a fresh issue of shares and an offer for sale by existing shareholders.

The total offer size comprises:

• Fresh Issue: A fresh issue of up to 4,51,80,722 equity shares, aggregating up to ₹15,000 crore.
• Offer for Sale (OFS): An offer for sale of up to 1,74,50,882 equity shares, aggregating up to ₹597 crore. The selling shareholders are:
  • Gyanesh Chaudhary: Up to 2,500,000 equity shares.
  • Vikram Capital Management Private Limited: Up to 5,000,000 equity shares.
  • Anil Chaudhary: Up to 9,950,882 equity shares.

Want a deeper look into Vikram Solar’s ₹2,079 crore IPO structure, fresh issue split, and key OFS stakeholders? Read the full Vikram Solar IPO breakdown here.

Objects of the Offer

The net proceeds from the fresh issue will be primarily used for capital expenditure to expand the company's manufacturing capabilities through its wholly-owned subsidiary, VSL Green Power Private Limited. The planned allocation is as follows:

• ₹7,933.60 million: For partial funding of the Phase-I Project, which involves setting up an integrated 3,000 MW solar cell and 3,000 MW solar module manufacturing facility in Tamil Nadu.
• ₹6,029.52 million: To fund the Phase-II Project, expanding the solar module manufacturing facility from 3,000 MW to 6,000 MW.
• Balance Amount: For general corporate purposes.

Key Operational and Financial Metrics 

They have strategically realigned to improve profitability, turning a net profit of ₹14.49 crore in FY2023 into a net profit of ₹139.83 crore in FY2025. Consequently, its EBITDA margin expanded from 8.98% to a healthy 14.37% over the same period. The total order book has grown from ₹278.69 crore to ₹1,034.08 crore, showing strong visibility for a positive future outlook. Return on Equity (ROE) has also increased steeply from 4.05% to 16.57%.

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Peer Comparison of Key Ratios

Vikram Solar reported total income of Rs 3,459.53 crore in FY25, with an EPS of Rs 4.61 and RoNW at 11.26%, supported by a net worth of Rs 1,241.99 crore. Compared to peers, it is smaller in scale than Waaree Energies (Rs 14,846 crore income, 20% RoNW) and Premier Energies (Rs 6,652 crore income, 33% RoNW). Websol Energy, despite a lower revenue of Rs 537 crore, posted the strongest RoNW at 55.65%.

Interested in how clean energy IPOs compare? Check out the detailed analysis of Greaves Electric Mobility IPO and how it stacks up in the renewable energy sector.

Also, want to compare how Greaves Electric stacks up in scale and returns against clean‑energy leaders like Vikram Solar, Waaree, and Websol? Dive into the Greaves IPO analysis.

Market Landscape 

The India Solar Energy Market was valued at USD 8 billion in 2025 and is expected to reach USD 14 billion by 2031 with a CAGR of 10.51% during the forecast period. As of March 2024, India's total renewable energy installed capacity (including large hydro projects) stood at about 191 GW, making up roughly 43% of the country's total power capacity. Solar power is the largest component of this, with an installed base of approximately 82 GW. Despite this growth, India has only tapped into about 11% of its estimated 750 GW solar potential, indicating a massive opportunity for future expansion.

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Growth Drivers

• Declining module prices: Global innovation and economies of scale have led to a more than 80% decline in solar module prices between 2010 and 2024. This has significantly lowered the capital cost of solar projects.
• Fiscal, regulatory and infrastructural support from the Government: The government actively drives the solar sector's growth through a robust policy framework, including the Production Linked Incentive (PLI) scheme, Domestic Content Requirement (DCR) mandates, and protective tariffs like the Basic Customs Duty (BCD) to boost domestic manufacturing and ensure sustained demand.
• Availability of debt and equity finance to the solar sector: The solar sector has attracted significant investment from various sources, including dedicated government financial institutions like IREDA, private equity funds, and international multilateral banks.

FinnovationZ by Prasad has a video on Vikram Solar IPO Review in this video. You should watch it for deeper insights into the company’s strengths and risks.

Future Outlook 

Key Strengths 

• Leading Market Position and Experience: Vikram Solar is one of India's largest solar PV module manufacturers by installed capacity, with over 15 years of operational experience and a strong track record.
• Advanced Manufacturing and R&D: The company has a strong focus on research and development, which has led to high-efficiency products. Its R&D lab is NABL accredited, and its manufacturing facilities are highly automated and certified with multiple international quality standards (ISO, IEC, BIS, UL).
• Established Domestic and Global Presence: Vikram Solar has a robust pan-India distribution network and has supplied modules to 39 countries. A significant and growing portion of its revenue comes from exports, particularly to the United States.

Key Risks 

• Customer Concentration: A significant portion of the company's revenue is derived from a small number of key customers. The loss of one or more of these customers could adversely affect its financial performance. In Fiscal 2024, its top five customers accounted for 76.13% of its revenue and the top ten for 89.38% in the same period.
• Dependence on a Single Product: The majority of the company's revenue comes from the sale of solar PV modules, with 97.34% of its revenue in Fiscal 2024. Any decline in demand for this product could significantly impact the business.
• Raw Material Price Volatility and Supply Chain Risks: Vikram Solar relies heavily on imports, particularly from China and Southeast Asia, for critical raw materials like solar PV cells. The company is exposed to price fluctuations, supply chain disruptions, and geopolitical risks that could affect costs and production. It does not have long-term contracts with suppliers.

FAQs

Q1: What is the Vikram Solar IPO and why is it happening?

The Vikram Solar IPO is an initial public offering by Vikram Solar Limited, one of India's largest solar PV module manufacturers. The company is raising funds through a fresh issue of shares to finance a major expansion of its manufacturing capacity in Tamil Nadu and for general corporate purposes. An Offer for Sale (OFS) is also included for existing shareholders.

Q2: When will the Vikram Solar IPO open for subscription?

The Vikram Solar IPO is scheduled to open for subscription from August 19, 2025, to August 21, 2025.

Q3: What is the price band and lot size for the Vikram Solar IPO?

The price band for the IPO is ₹315 to ₹332 per equity share. The minimum bid is for 45 equity shares, which is the lot size for retail investors.

Q4: What is the financial performance of Vikram Solar like? Is it profitable?

Vikram Solar has shown a significant financial turnaround, moving from a net loss of ₹629.40 million in FY2022 to a net profit of ₹797.18 million in FY2024. Its EBITDA margin has also expanded substantially over the same period.

Q5: What are the key strengths of Vikram Solar as an investment?

Key strengths include its leading market position in India, extensive experience in the solar energy sector, a strong focus on advanced manufacturing and R&D, and a growing domestic and global presence with a significant portion of revenue from exports.

Q6: What are the main risks of investing in the Vikram Solar IPO?

The primary risks include high customer concentration (top ten customers account for nearly 90% of revenue), dependence on a single product (solar PV modules), and exposure to raw material price volatility and supply chain risks due to a reliance on imports.