IPO Details
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IPO Size
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Schedule of Solarworld Energy Solutions Ltd
Start date
End date
Allotment of bids
Refund Initiation
Listing on exchange
About Solarworld Energy Solutions Limited IPO
Solarworld Energy Solutions Limited IPO is an IPO aggregating up to ₹600 crores. It consists of an offer for sale aggregating up to ₹50 crores and a fresh issue aggregating up to ₹550 crores. The shares will be allotted on TBA. The credit of shares to the demat account will take place on TBA and the initiation of refunds will take place on TBA.
Objective of Solarworld Energy Solutions Limited IPO
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Investment in their subsidiary, Kartik Solarworld Private Limited (KSPL) for part-financing the establishment of a 1.2 GW solar PV TopCon Cell manufacturing facility in Pandhurana, Madhya Pradesh, India (the Pandhurana Project).
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General corporate purposes.
Solarworld Energy Solutions Limited IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band (₹) | TBA |
Existing Shares to be Sold | Aggregating up to ₹50 crores |
Fresh Issue | Aggregating up to ₹550 crores |
EPS (₹) For the year ended March 31, 2024 | 8.00 |
Solarworld Energy Solutions Limited IPO Share offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs Share Offered | Not less than 75% of the Issue |
Non-Institutional Investors (NIIs) | Not more than 15% the Issue |
Retail Individual Investors | Not more than 10% of the Issue |
Industry Outlook
In fiscal 2023, solar capacity additions stood at ~13 GW, with ~2.2 GW coming from rooftop solar projects. Similarly, in fiscal 2024, solar capacity additions stood at ~15 GW, with ~3 GW coming from grid-connected rooftop solar projects.
CRISIL MI&A-Consulting expects power demand to grow by 5.5-6.0% in the next five years. The growth in demand will be supported by infrastructure-linked capex, strong economic fundamentals along with expansion of the power footprint via strengthening of T&D infrastructure.
Peak demand is expected to grow at an annual average of 5-6% over fiscal 2024-29 to reach nearly 318 GW by fiscal 2029 with expected persistent high temperatures, rising urbanization, economic growth and infrastructure push leading to higher power consumption.
Company Information
Incorporated in 2013, Solarworld Energy Limited offers comprehensive, end-to-end and cost-effective solutions for the installation of solar power projects tailored to their customers' needs. These comprise public sector undertakings (PSUs) and commercial and industrial clients (C&I Clients). As of August 31, 2024, they have completed projects whose total capacity is 253.67 megawatts (MW) AC/ 336. 17MW DC, and ongoing projects with a cumulative capacity of 420 MW AC / 592 MW DC.
Solarworld Energy Solutions Ltd Strengths
Established track record and strong in-house execution capabilities for end-to-end solar EPC solutions.
The success is driven by their strong in-house execution capabilities and commitment to delivering end-to-end solutions. Their end-to-end EPC solutions include site survey and design to installation and commissioning. They provide solar EPC solutions for PSUs ranging from 10 MW to several hundred MW and C&I Clients ranging from 1 kilo-watt (KW) to several hundred MW.
Robust order book with favourable national policy support and visibility for future growth.
Their order book is an important indicator of future revenues and growth for the company. As of August 31, 2024, their order book was ₹7,523.10 million for EPC projects and ₹473.94 million for O&M projects with a cumulative capacity of 592 MW (DC) and 889 MW (DC), respectively. Their order book has grown from ₹1,892.39 million in fiscal 2022 to ₹8,130.41 million in fiscal 2024, at a CAGR of 107.28%.
Strong financial performance driven by asset-light business model.
They operate on an asset-light business model in relation to their operations under the CAPEX model, where customers handle real estate acquisition. Their model minimises capital expenditures and fixed costs, providing them with the flexibility and scalability to meet customer needs, offer customised solutions, and respond quickly to changing market conditions
They have demonstrated strong financial performance, and their total income has grown at a CAGR of 298.03% from ₹319.07 million in fiscal 2022 to ₹5,055.02 million in fiscal 2024.
Risks of Solarworld Energy Solutions Limited IPO
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Their operations are concentrated predominantly in states like Uttar Pradesh, Telangana, Maharashtra, Rajasthan, Haryana and Delhi, and any change in the economic conditions could adversely impact their business and financial performance.
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The company has sustained negative cash flows from operating activities in the past and may experience earnings decline or operating losses or negative cash flows from operating activities in the future. Any negative cash flows in the future would adversely affect our results of operations and financial condition.
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Their business and profitability are substantially dependent on the availability and cost of their raw materials, and any disruption to the timely and adequate supply of raw materials, or volatility in the prices of raw materials may adversely impact their business, results of operations and financial condition.
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In Fiscals 2024, 2023 and 2022, they derived 91.17%, 87.98% and 78.16% of our revenue, respectively, from one of their key customers, SJVN Green Energy Limited. The loss of such a key customer may materially and adversely affect their business.
All Financial Information about Solarworld Energy Solutions
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Comparison with peers
| Parameter | Solarworld Energy Solutions Limited | Sterling & Wilson Renewable Energy Limited | KPI Green Energy Limited |
|---|---|---|---|
Revenue from Operations for the year ended March 31, 2024 (₹ in crores) | 501.016 | 3035.370 | 1023.900 |
P/E | - | - | 31.88 |
EPS (Basic) (₹) | 8.00 | (10.40) | 28.17 |
Return on Net Worth (%) | 108.25% | (58.99%) | 29.56% |
NAV per share (₹) | 11.39 | 40.95 | 138.63 |
Anchor Investor Information
The Anchor Investor Bidding Date shall be one Working Day prior to the Bid/Offer Opening Date.
IPO Registrar and Book Running Lead Managers
Book running lead managers:
Nuvama Wealth Management Limited
SBI Capital Markets Limited
Registrar for the IPO is Link Intime India Private Limited
Business Model
The company earns its revenue through the following sources:
- Offering engineering, procurement and construction (EPC) services for solar power projects.
Company Growth Trajectory
As of August 31, 2024, their order book, which is the total value of solar power projects for which they have entered into definitive EPC contracts or have been awarded letters of intent in respect of bids, minus the revenue already recognised from those projects (Order Book) was ₹7,997.08 million.
The company’s total income has grown at a CAGR of 298.03% from ₹319.07 million in fiscal 2022 to ₹5,055.02 million in fiscal 2024.
Their EBITDA increased from ₹29.46 million in fiscal 2022 to ₹710.93 million in fiscal 2024. Their profit after tax has grown at a CAGR of 385.23% from a profit after tax of ₹21.95 million in fiscal 2022, to ₹516.98 million in fiscal 2024. The company has the highest ROE and ROCE amongst its competitors from the publicly listed leading Indian solar EPC companies, with return of capital employed of 92.06% and return on equity of 108.25% for fiscal 2024.
Company Market Position
Solarworld Energy Solutions Limited is one of the leading solar energy solutions provider, specialising in engineering, procurement and construction (EPC) services for solar power projects in terms of revenue from EPC business for fiscal 2024 as per CRISIL.
Solarworld Energy Solutions Limited Company Profit & Loss
| Parameter | FY22 | FY23 | FY24 |
|---|---|---|---|
Revenue from operations (₹ crores) | 27.788 | 232.461 | 501.016 |
Profit Before Tax (₹ crores) | 2.428 | 19.330 | 68.371 |
Net profit / (loss) (₹ crores) | 2.195 | 14.836 | 51.691 |
EBITDA (₹ crores) | 2.946 | 22.876 | 71.093 |
EPS (₹) | 0.34 | 2.30 | 8.00 |
Solarworld Energy Solutions Limited Cash Flow
| Parameter | FY22 | FY23 | FY24 |
|---|---|---|---|
Profit before tax (₹crores) | 2.428 | 19.330 | 68.371 |
Net Cash from Operating Activities (₹ crores) | (4.238) | (7.140) | 7.175 |
Net Cash from Investing Activities (₹ crores) | (18.545) | 3.282 | 19.216 |
Net Cash from Financing Activities (₹ crores) | (10.341) | 6.358 | 21.429 |
Cash and Cash Equivalents (₹ crores) | 1.831 | 4.331 | 20.381 |
How To Check Allotment Status of Solarworld Energy Solutions Limited IPO?
You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of the registrar Link Intime India Private Limited. To check the status on the BSE website:
- Visit the BSE website
- Click on “Investor Services” and choose “Application Status Check”
- Choose the issue type — Equity or Debt (Equity in this case)
- Select the Issue Name from the drop-down. The issue name is the company’s name, which is Solarworld Energy Solutions
- Enter your application number or PAN number
- Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status
Follow these steps to know the allotment status on the registrar’s website:
- Visit the Link Intime India Private Limited website
- Choose “Public Issues” from the “Investor Services” drop-down
- Select Solarworld Energy Solutions from the drop-down
- Enter your PAN number or Application number
- Click on “Submit” to know the allotment status
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Solarworld Energy Solutions Ltd IPO FAQs
What is the Solarworld Energy Solutions IPO?
The Solarworld Energy Solutions IPO has an issue size aggregating up to ₹600 crores. The IPO opens for subscription on TBA and closes on TBA.
Who is the Registrar for Solarworld Energy Solutions IPO?
Link Intime India Private Limited is the registrar for this IPO.
