Vikram Solar IPO Listing Strategy, Price Targets & More
The time is finally here! Vikram Solar IPO, a major player in India's solar energy sector, is set to list in the stock market tomorrow, August 26, 2025. Vikram Solar had crazy subscription numbers and very high market interest, investors are now making Strategy for the listing day. Here's my analysis and a personal plan for the IPO:
About Vikram Solar Limited
Vikram Solar is one of India's largest solar photovoltaic (PV) module manufacturers, boasting over 17 years of industry experience. The company specializes in manufacturing high-efficiency solar modules, including PERC, TOPCon, and HJT technologies. Beyond manufacturing, Vikram Solar also provides Engineering, Procurement, and Construction (EPC) services and operations and maintenance for solar power plants. With manufacturing facilities strategically located in West Bengal and Tamil Nadu, and ambitious expansion plans to increase capacity significantly in the coming years, Vikram Solar is a key contributor to India's renewable energy landscape.
Vikram Solar IPO: Key Details at a Glance
| Particulars | Details |
|---|---|
| IPO Price (Cut-off) | ₹332 per share |
| Listing Date | August 26, 2025 |
| Issue Size | ₹2,079.37 Crore (Fresh Issue + OFS) |
| Grey Market Premium (GMP) | ₹41 (as of August 25, 2025) |
| Expected Listing Price (Based on GMP) | ₹373 (12.35% gain) |
My Listing Day Strategy for Vikram Solar
IPO is priced at a cut-off of ₹332, my personal expectation for the listing day is a gain of around 15%, aiming for a price of ₹380. Here's how I plan to approach the listing:
- Partial Profit Booking: I will consider selling 30-40% of my allotted shares if the price reaches ₹380-385. This strategy helps to lock in some initial gains and reduce risk.
- Full Exit Target: My maximum target to exit all shares is ₹400, as i don't plan to hold the shares for the long term.
Why Vikram Solar is not a Long-Term Hold for now?
My decision not to hold for the long term, despite the company's strong financial growth, is primarily due to the IPO's high valuation. While Vikram Solar has demonstrated impressive growth in revenue and profit (e.g., 37% increase in revenue and 75% rise in PAT in FY25), the initial pricing leaves less immediate room for significant upside in the short to medium term. The P/E ratio at the upper end of the price band (around 72.17x based on FY25 EPS) is considerably higher than the average industry peer group P/E ratio of 44.28x.
Financial Growth & Valuation Perspective
Vikram Solar has indeed shown robust financial performance. Revenue from operations increased to ₹3,423 crore in FY25 from ₹2,073 crore in FY23, and PAT has also seen substantial growth. The company's order book doubled to 10,341 MW by March 2025, reflecting strong demand. However, the valuation appears to factor in much of this future growth, making it a "priced high" opportunity for immediate long-term entry.
Frequently Asked Questions (FAQs)
1. What is Vikram Solar Limited?
Vikram Solar Limited is a leading Indian solar photovoltaic (PV) module manufacturer and a provider of EPC services for solar power plants.
2. What was the IPO price of Vikram Solar?
The IPO was priced at a cut-off of ₹332 per share.
3. When is Vikram Solar listing?
The shares are scheduled to list tomorrow, August 26, 2025.
4. What was the Grey Market Premium (GMP) for this IPO?
As of August 25, 2025, the Grey Market Premium (GMP) was approximately ₹41, indicating an expected listing price of around ₹373.
5. What are the personal listing expectations?
My personal expectation is a 15% gain, aiming for a price of ₹380.
6. What is the strategy for profit booking on listing day?
The plan is to sell 30-40% of shares at ₹380-385 and aim to exit all shares at ₹400.
7. Why is a long-term hold not being considered?
The primary reason is the IPO's high valuation, which leaves less room for short to medium-term upside despite strong financial growth.
8. What is Vikram Solar's financial performance like?
The company has shown strong financial growth, with increasing revenue and profit, and a doubling of its order book by March 2025.
Disclaimer: These are purely my personal views and observations, and should not be considered as investment advice. Please conduct your own due diligence and consult with a financial advisor before making any investment decisions.