Vikram Solar enters listed space, shares debut at 2% premium over issue price

Vikram Solar IPO Listing News: Solar energy solutions provider Vikram Solar's shares debuted in the secondary market on a decent note on Tuesday, August 26.

The stock began its journey on BSE at Rs 340 apiece, marking a premium of Rs 8, or 2.4 per cent, over the issue price.

On NSE, the Vikram Solar stock -- traded with the symbol VIKRAMSOLR on both bourses -- at Rs 338, a premium of Rs 6, or 1.8 per cent.

The Kolkata-headquartered company’s initial public offer concluded last Thursday with a total subscription of 54.6 times.

Zee Business Managing Editor Anil Singhvi had recommended applying for the IPO for listing gains and from a medium-term perspective.

Here’s everything to know about Vikram Solar:

EDITOR’S TAKE | Here’s how market guru Anil Singhvi views Vikram Solar

Singhvi has identified the following key points about Vikram Solar:

Positive:

• Experienced promoters with a strong growth track record
• The company has an aggressive expansion plan to enhance its capacity almost four times in next three years
• The company has reduced export dependency; it now earns almost its entire revenue from the domestic market
• A healthy and diversified order book
• A strong brand with a reputed clients list
• Vikram Solar is a profitable company with positive cash flows
• It has achieved a significant reduction in its debt

Negative: 

• The company has huge raw material imports from China as well as Eastern and South Asian countries
• Out of its total revenue, about 77 per cent comes from its top five customers
• It has a low market share of 4% in a highly competitive industry
• There is a safeguard duty of Rs 148 crore as certain receivables are under a legal dispute
• The stock’s valuations are expensive compared to peers

ALSO READ: Vikram Solar IPO Final Day: Rs 2,000 crore issue subscribed over 54 times

Vikram Solar IPO

The IPO -- comprising fresh issuance of Rs 1,500 crore and an offer for sale (OFS) to the tune of Rs 579 crore -- was open for subscription from August 19 to August 21.
According to provisional exchange data, the portions set aside for qualified institutional buyers (QIBs) and non-institutional investors (NIIs) were booked 142.8 and 50.9 times, respectively.

The portion reserved for retail individual investors (RIIs) saw a subscription of 7.7 times the equity on offer, according to the data.