Solarworld Energy Solutions IPO Day 1:Issue booked 1.23x so far; check GMP, subscription status. Should you apply?

Solarworld Energy Solutions IPO day 1: The initial public offering for Solar energy provider Solarworld Energy Solutions will start on September 23 and end on September 25. Solarworld Energy IPO price band has been set between ₹333 and ₹351 per share.

On Monday, Solarworld Energy Solutions announced that it has raised ₹220.5 crore from anchor investors in advance of the public subscription opening. Among the anchor investors are Pinebridge Global Funds, Motilal Oswal Mutual Fund (MF), Singularity Equity Fund I, VQ Fastercap Fund II, Citigroup Global Markets Mauritius, and BNP Paribas Financial Markets, as stated in a circular posted on BSE's website.

The company indicated that 75 percent of the total offer has been allocated to qualified institutional buyers, 15 percent to non-institutional investors, and the remaining 10 percent to retail investors.

Solarworld Energy Solutions specializes in providing solar energy solutions, focusing on engineering, procurement, and construction services for solar power projects.

Solarworld Energy Solutions IPO GMP today

Solarworld Energy IPO GMP today or grey market premium is +65. This indicates Solarworld Energy share price were trading at a premium of ₹65 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Solarworld Energy share price was indicated at ₹416 apiece, which is 18.52% higher than the IPO price of ₹351.

Following the grey market activities over the last five sessions, today's IPO GMP is on an upward trend and is anticipated to debut strongly. The lowest GMP recorded is ₹0.00, while the highest is ₹68, as per experts.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Solarworld Energy Solutions IPO review

The Anand Rathi Research Team indicated that regarding valuation, considering the annualized earnings for FY25, the company is targeting a P/E ratio of 39.6 times, leading to a post-issue market capitalization of around ₹30,422 million, which suggests that the issue seems fully priced. The company functions in a highly competitive and fragmented market environment.

The expansion of the solar sector in India is largely fueled by robust government backing, which is demonstrated by a proactive and sustained tendering strategy, thus enabling the company to enhance its profitability over the long term. As a result, they recommend a Subscribe rating for the issue for long-term investors.

Solarworld Energy Solutions IPO subscription status

Solarworld Energy Solutions IPO subscription status was 1.23x on day 1, so far. The retail portion was subscribed 4.56x, and NII portion has been booked 1.45x Qualified Institutional Buyers (QIBs) portion received is yet to receive bids.

The company has received bids for 99,18,048 shares against 80,93,092 shares on offer, at 17:00 IST, according to data on BSE.

Solarworld Energy IPO details

Solarworld Energy IPO consists of a fresh equity share issuance amounting to ₹440 crore, along with a share sale of ₹50 crore by the promoter Pioneer Facor IT Infradevelopers.

The funds raised from the new share issuance will be allocated for investment in the company's subsidiary, Kartik Solarworld, to partially finance the creation of a 1.2 GW Solar PV TopCon manufacturing plant in Pandhurana, Madhya Pradesh, as well as for general corporate needs.

Nuvama Wealth Management Ltd and SBI Capital Markets Ltd are the lead managers overseeing the issue.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.