Saatvik Green Energy share price slides 4% after muted listing; Should you buy, sell or hold?

Saatvik Green Energy share price fell by 4% following a lackluster debut today. Shares of solar panel manufacturer, Saatvik Green Energy, saw its shares open at ₹460, which is 1% lower than the issue price of ₹465. On the BSE, the stock debuted at ₹460, reflecting a discount of 1.07% from the issue price. Meanwhile, at the NSE, the stock started trading at the issue price of ₹465. Subsequently, the shares experienced a further decline of 3.87%, bringing the price down to ₹447. The company's market capitalization reached ₹5,798.53 crore.

The initial public offering of Saatvik Green Energy was subscribed 6.57 times by the end of the bidding period on Tuesday. Saatvik Green Energy IPO price band was set between ₹442 and ₹465 per share.

Saatvik Green Energy is a manufacturer of solar photovoltaic modules, boasting an operational capacity of approximately 3.8 GW as of June 30, 2025.

The company offers comprehensive engineering, procurement, and construction services for solar initiatives, which encompass both ground-mounted and rooftop solar installations.

Should you buy, sell or hold?

As per Narendra Solanki, who leads Fundamental Research at Anand Rathi Shares and Stock Brokers, the company is targeting a P/E ratio of 27.4 times based on annualized FY25 earnings, which suggests a post-issue market capitalization of around ₹59,102 million, indicating that the issue seems to be fully valued. Given the advantages of backward integration, expansion of module capacity, and cell integration that could enhance profitability over the long term, investors might consider holding onto the issue after it lists.

Bhavik Joshi, Business Head at INVasset PMS, mentioned that Saatvik Green Energy has positioned itself as one of India’s top solar PV module manufacturers and a rapidly expanding entity in the renewable energy sector. The company stands to benefit from favorable structural trends in India’s solar market, such as the China+1 strategy that developers are adopting and the anti-dumping duty on Chinese modules that the government has enacted.

The Saatvik Green Energy IPO is considered fully valued, reflecting a post-issue P/E ratio of 27.63 and a P/BV of 5.7 at the upper price band. Although the valuations are high, Saatvik Green Energy’s leadership in the market, integration of technology, and supportive policies inspire confidence among medium- to long-term investors looking to engage with India's rapidly growing solar energy industry.

Saatvik Green Energy IPO details

The company's initial public offering consisted of a new share issue amounting to ₹700 crore along with a ₹200 crore offer for sale (OFS) from the promoters.

The earnings from the new share issue, totaling ₹477.23 crore, will be directed towards Saatvik Solar Industries Private Limited to establish a 4 GW solar PV module manufacturing facility at the Gopalpur Industrial Park in Odisha, while ₹166.44 crore will be allocated to the subsidiary for the repayment or prepayment of its existing debts.

Dam Capital Advisors serves as the book running lead manager, and Kfin Technologies acts as the registrar for the offering.

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.