Niloy Mondal 🇮🇳

Vikram Solar Limited IPO Final Verdict Applying For Small-Reasonable Listing Gains And Medium Risk Takers Can Evaluate For Long-term Highlights of the Issue : Date : 19-21 August Price Band : 315-332 Size : 2,079 Crore Fresh - 1,500 Crore OFS - 579 Crore M.cap : 12,009 Crore Objects Of The Issue : ▪︎ Funding Capital Expenditure Towards Phase 1 & Phase 2 Projects - 1,365 Cr ▪︎ GCP - 135 Cr Key Pointers : ▪︎ Vikram Solar is a Leading Solar PV Module Manufacturer with an Installed Capacity of 4.50 GW out of which 2.85 GW being enlisted as ALMM capacity ▪︎ The Company has a Pan-India presence in 19 States and 2 UTs with 83 authorized distributors and 250 + dealers ▪︎ The Company Aims To increase the Capacities and capabilities significantly : FY25 Module : 4.50 GW FY26E Module : 15.50 GW (+11 GW) FY27E Module : 20.50 GW (+5 GW) Cell : 12.00 GW (+12 GW) BESS : 5.00 GWh (+5 GWh) ▪︎ The Company is Raising Funds to Partially Fund to fund its aggressive Capex and expansion plans ▪︎ Vikram has an outstanding Orderbook of 10.3 GW for 12-18 Months (This Translates into 13,000-15,000 Potential Revenues) ▪︎ The Company is also entering the BESS Segment with 5 GWh Capacity by FY27 ▪︎ The Solar Cell Capacities will lead to backward integration leading to significantly higher margins Financials and Personal Estimates : FY23 Revenue : 2091.9 Crore PAT : 14.5 Crore FY24 Revenue : 2,524 Crore PAT : 79.7 Crore FY25 Revenue : 3,495.5 Crore PAT : 139.8 Crore FY26E Revenue : 6,850 Crore PAT : 485 Crore FY27E Revenue : 10,300 Crore PAT : 1,135 Crore Valuing Vikram Solar Limited at 15x FY27E PAT, Fair Value Comes At 471, Implying An Upside Of 42% Key Risks : ▪︎ Significantly large number and quantum of Litigations and tax matters – Material Proceedings against the company : 4 – Criminal Proceedings against the company : 2 – Actions taken by regulatory or statutory authorities : 2 – Litigations involving Directors, Promoters : 9 – Litigations involving KMPs : 5 – Tax Litigations Against the company : 45 – Tax Litigations Against Promoters : 1 ▪︎ Execution Risks ▪︎ Risk on Capacity Expansion timelines Given Vikram Solar is currently only a Module Manufacturer with a high number of Litigations and questions on Execution, Markets might take their own time to discover the Valuation The Anchor Book was Decent to Good, Good Pre-IPO Names (was done at 122/- share) The Pre-IPO Investors selling large chunks in medium term is another key risk given the constant Liquidity supply Just A Personal View, Only For Educational Purposes