Solarworld Energy Solutions IPO: From business overview, financials to key risks— 10 key things to know from RHP

Solarworld Energy Solutions IPO: Solarworld Energy Solutions' initial public offering (IPO) is set to open for public subscription on Tuesday, September 23.

The ₹490 crore book-build issue, which combines a fresh issue of 1.25 crore shares worth ₹440 crore and an offer for sale (OFS) of 14 lakh shares worth ₹50 crore, will conclude on Thursday, September 25. The company has fixed the IPO price band in the range of ₹333 to ₹351 per equity share with a face value of ₹5.

Share allotment is expected to be finalised on Friday, September 26. On the next business day, i.e., Monday, September 29, shares will be credited to the demat accounts of successful bidders, while those who fail to get the allotment will get the refund on the same day.

The stock will likely list on the BSE and the NSE on Tuesday, September 30.

Solarworld Energy Solutions IPO: 10 key things to know from RHP

Let's take a look at 10 key things to know from the Red Herring Prospectus (RHP) of the Solarworld Energy Solutions IPO:

1. Promoter selling shareholder

Pioneer Facor IT Infradevelopers Private Limited is the promoter-selling shareholder of the issue. The entity is offloading 14 lakh shares in the OFS, which is 10.20 per cent of the total offer size.

2. Solarworld Energy Solutions' promoters and promoter groups

Pioneer Facor IT Infradevelopers Private Limited holds 39.35 per cent of the pre-offer share capital of the company, followed by Kartik Teltia, who holds 34.56 per cent of the total shares.

Mangal Chand Teltia holds 4.79 per cent shares of the company.

3. Solarworld Energy Solutions' management

The company has six directors on its board, of whom two are independent directors, including one woman independent director.

Kartik Teltia is the company's managing director. His current term is for three years, commencing September 18, 2024.

Rishabh Jain is the whole-time director. Rini Chordia is the chairperson and independent director of the company.

4. Solarworld Energy Solutions' business

The Noida-based company provides solar energy solutions and specialises in engineering, procurement and construction (EPC) services for solar power projects.

5. Solarworld Energy Solutions' financial performance

The company's revenue from operations and profit have seen a sustained growth over the last three financial years.

Profit for FY23 stood at ₹14.84 crore, which rose to ₹51.69 crore in FY24 and to ₹77.05 crore in FY25.

Revenue from operations in FY23 was ₹232.46 crore, in FY24 ₹501.02 crore and ₹544.77 crore in FY25.

6. Solarworld Energy Solutions' subsidiaries

Solarworld Energy Solutions has three subsidiaries: ZNSHINE Solarworld Private Limited, Kartik Solarworld Private Limited, and Solarworld BESS One Private Limited.

7. Solarworld Energy Solutions' peers

The key peers of Solarworld Energy Solutions are: NTPC Green Energy, Adani Green Energy, ReNew Power, ACME Solar Holding, JSW Neo, and TATA Power REL.

8. Object of the offer

The company intends to invest about ₹575.30 crore in its subsidiary, KSPL, for part-financing the establishment of the Pandhurana project.

9. Concentration of customers is a key risk

According to the RHP, for fiscal years 2025, 2024, and 2023, Solarworld Energy Solutions derived 79.19 per cent, 91.16 per cent, and 87.98 per cent of its revenue, respectively, from one of its key customers, SJVN Green Energy Limited. The loss of such a key customer may materially and adversely affect the business, future prospects, and financial performance of the company.

10. Competitive industry

The company operate in a competitive industry and as it expands its operations in terms of geographies and scale of the projects, the competition will increase.

The company believes its primary competitors are traditional EPC solution providers and solar power companies that have their own in-house EPC and O&M operations.

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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.