Emmvee Photovoltaic IPO Day 2 Highlights: Issue booked 17% — GMP plunges sharply

Emmvee Photovoltaic IPO was booked 17% on the second day of the bidding. Here's a look at how different quotas are booked:

QIB: 6%

NII: 11%

Retail: 61%

The company has demonstrated consistent growth in revenue and profitability over the years, reflecting its commitment to operational efficiency and productivity. Since inception, it has funded its operations and expansion entirely through internal accruals and debt, without relying on external equity funding.

Over the past three fiscals, the company’s revenue from operations has grown at a CAGR of 94.38%, rising from ₹6,181.26 million in Fiscal 2023 to ₹23,356.13 million in Fiscal 2025, and stood at ₹10,278.23 million for the three months ended June 30, 2025.

Its EBITDA has expanded at a CAGR of 258.18%, increasing from ₹562.72 million in Fiscal 2023 to ₹7,219.38 million in Fiscal 2025, with ₹3,473.82 million recorded in the three months ended June 30, 2025.

Furthermore, the company’s restated profit for the year grew at a remarkable CAGR of 541.36%, from ₹89.71 million in Fiscal 2023 to ₹3,690.14 million in Fiscal 2025, and reached ₹1,876.75 million during the three months ended June 30, 2025.

Emmvee has built a strong domestic distribution network comprising six distributors across nine states and two union territories. The company aims to expand this footprint to reach small and medium commercial and industrial (C&I) customers, especially through the DCR market.

Emmvee plans to leverage government programs such as the PM Surya Ghar Yojana, CPSU Scheme, and PM-KUSUM, which promote domestic solar adoption. Supported by a 19-member sales team, Emmvee collaborates with system integrators and key accounts, tracks new tenders, and strategically positions itself for techno-commercial bids.

Its proven capabilities and strong track record enable the company to pursue high-value government projects and drive solar awareness and adoption across India.

India’s solar manufacturing and deployment ecosystem is undergoing a structural transformation. As of March 2025, module manufacturing capacity has already exceeded ~74 GW, while cell manufacturing capacity has tripled year-on-year.

Government policy is also evolving — shifting from requiring locally made modules in projects to mandating cells from approved Indian manufacturers by June 2026. This creates a favourable backdrop for domestic players.

At the same time, global supply-chain realignment (diversification away from China), rising tariffs, and import constraints are accelerating demand for Indian-manufactured solar infrastructure. For Emmvee and its peers, this means the addressable market extends beyond deployment — it now includes manufacturing for deployment.

Challenges remain, including aggressive global capacity build-outs, input-cost inflation (polysilicon, wafers), margin pressure from commoditisation, and execution risks associated with rapid capacity expansion.

However, Indian policy tailwinds, rising domestic project flows, and export opportunities combine to create a multi-year growth runway for integrated solar manufacturers. In this context, Emmvee’s manufacturing scale, technology upgrade path, and domestic focus position it well to capture the industry’s growth wave.

Emmvee Photovoltaic Power Ltd enters the public market at a defining moment for India’s clean-energy and solar manufacturing ecosystem. The company combines strong execution visibility, a 5 GW+ active order book, robust customer base, and early adoption of advanced technologies like TOPCon—with a clear expansion roadmap toward over 16 GW module and 8 GW cell capacity by FY28.

Its fully integrated manufacturing chain, from cells to modules, positions it to capture margin across the value chain and participate directly in India’s localisation and import-substitution push. Owing to these strong developments, we recommend SUBSCRIBE.

The company is focused on establishing a presence in international markets with untapped potential. It has supplied solar PV modules to customers in 17 countries across the globe and is evaluating opportunities to expand its operations in the United States.

The imposition of sanctions on imports from the Xinjiang region in China and potential anti-dumping duties on other countries in South-East Asia are expected to strengthen India’s competitive position. Furthermore, while the United States solar industry has grown to 55–60 GW of module assembly capacity as of June 2025, it lags in cell manufacturing capacity, presenting an opportunity for India to export backward-integrated components to the United States.

Emmvee Photovoltaic IPO was booked 13% so far on the second day of the bidding, with the retail portion being subscribed 50%. Here's a look at how different quotas are booked:

QIB: 2%

NII: 9%

Retail: 50%

In 2024, Emmvee was the only Indian company among four global players to pass all seven Kiwa PVEL qualification tests under a single product type. Warranty claims have been negligible, averaging below 0.008% of revenue over the last three fiscals, highlighting strong product performance.

We recommend subscribing to this IPO with a medium to long-term view. The company is a leading manufacturer of solar PV modules in India, offering a diverse product portfolio that includes TOPCon, Mono PERC, and bifacial modules. Its robust growth in key financial metrics is underpinned by an expanding order book.

— Kunvarji Wealth Solutions

Solar PV Modules: Emmvee Photovoltaic Power Limited specializes in manufacturing high-quality solar photovoltaic (PV) modules. The company offers both mono-facial and bi-facial modules, incorporating advanced technologies such as Mono PERC and TOPCon to deliver enhanced efficiency and performance.

Solar Cells and Water Heating Systems: In addition to modules, Emmvee produces solar cells using state-of-the-art technologies. The company also provides solar water heating systems, contributing to its comprehensive range of solar energy solutions.

Turnkey Solar Solutions: Emmvee offers end-to-end turnkey solar solutions, including engineering, procurement, and construction (EPC) services. These solutions enable clients to implement complete solar power projects efficiently, supported by the company’s expertise and product portfolio.

Of the fresh issue proceeds, about ₹1,621 crore will be used to repay or prepay borrowings and interest of the company and its key subsidiary, with the remainder allocated for general corporate purposes.

The company is a leading integrated solar photovoltaic (PV) module and solar cell manufacturer with an installed production capacity of 7.8 GW for PV modules and 2.94 GW for solar cells as of May 31, 2025.

The company operates four manufacturing units across two locations in Karnataka, spanning 22.44 acres, with strategic proximity enhancing operational efficiency. Solar PV module capacity has expanded from 0.50 GW (FY2022) to 7.80 GW (June 2025), with 2.94 GW solar cell capacity operational.

As of June 30, 2025, the company’s effective installed capacity stood at 1.50 GW for modules and 537 MW for cells, with actual production of 636 MW and 360 MW, respectively, reflecting a capacity utilization rate of 42.36% for modules and 66.95% for cells.

For FY25, EPPL achieved 6.02 GW module and 2.94 GW cell installed capacity, producing 1.48 GW of modules and 534 MW of cells, translating to capacity utilization of 53.91% and 42.83%, respectively.

EPPL is one of India’s leading solar PV module manufacturers with a growing integrated footprint across the solar value chain. The company focuses on expanding scale, backward integration, and technological advancement to enhance cost efficiency. It is targeting 16.30 GW module and 8.94 GW cell capacity by H1 FY28. A recent 750 MW order from NTPC Green Energy reinforces its strong execution capabilities and industry credibility.

India’s solar sector is expanding rapidly, supported by strong policy push, import substitution measures, and the national ambition of achieving 500 GW of renewable capacity by 2030. With rising demand across utility, commercial, and rooftop segments, and industry capacity projected to grow at a 25–30% CAGR, EPPL — with its 5.1% market share — is strategically positioned to capitalize on this accelerating growth.

At the upper end of its price band, EPPL is valued at a P/E of 28.4x (based on TTM EPS of ₹7.6), which stands at a discount to peers. With its integrated operations, strong capacity expansion, robust order visibility, and strategic growth roadmap, the company is well placed to benefit from India’s renewable energy transition.

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Emmvee Photovoltaic IPO kicked off for second day of bidding today. Investors can place their bids bu 5 pm today. The issue was booked 9% at the end of the first day.

Emmvee’s IPO comes at a time when India’s solar manufacturing ecosystem is entering a major expansion phase. The company operates 7.8 GW of module and 2.94 GW of cell capacity as of June 2025 and plans to nearly double both by mid-2028, supported by equity and IREDA funding. For FY25, revenue stood at ₹2,335 crore, EBITDA at ₹722 crore (31% margin), and PAT at ₹369 crore. The IPO, largely a fresh issue, will reduce debt and fund growth. At the upper band, valuations of ~41x FY25 earnings and ~22x EV/EBITDA look rich relative to peers, leaving little room for execution missteps. Strengths include backward integration and alignment with India’s renewable policy push, while risks lie in customer concentration, capital intensity, and global module price volatility. Emmvee is a structural clean-energy play, but investors should treat it as a medium-term industrial story where operational scaling, not short-term listing gains, will define success.

— Harshal Dasani, Business Head at INVAsset PMS

As of today, the grey market premium (GMP) for Emmvee Photovoltaic Power Ltd’s IPO stands at ₹5. With the upper price band fixed at ₹217 per share, the estimated listing price is around ₹222 per share ( ₹217 + ₹5 GMP). This translates to an expected listing gain of approximately 2.30% per share, based on the current grey market trends. The GMP is sharply lower than ₹20, the company was commanding yesterday.