The IPO timetable is hectic, but is the appetite for new issues waning? After PhysicsWallah, Fujiyama Power Systems is another mainboard IPO issue that is seeing subdued investor interest. Even the grey market premium (GMP) for Fujiyama Power Systems is 0, indicating that the market participants are not expecting big fireworks at current levels.
However, investors must understand that the grey market is an unofficial indicator of investor sentiment, and the actual listing price may differ significantly.
It is interesting to note that in the same sector, Tenneco Clean Air India IPO’s GMP has risen 31%, meanwhile Fujiyama Power System’s GMP didn’t tick even a per cent.
Fujiyama Power Systems IPO: Subscription muted
It’s the last day to bid for the Fujiyama Power Systems IPO. The IPO has been booked a total of 0.85 times as of 1.30 PM on Day 3. The retail segment has been subscribed to 0.58 times, while the employee section was booked 1.22 times. The Non-Institutional Investors subscribed to it 0.29 times, and the QIBs 1.74 times.
Fujiyama Power Systems IPO: What experts have to say?
Fujiyama Power System could be one of the biggest beneficiaries due to government initiatives like the Rooftop Solar Scheme Phase II, PMKUSUM, PM Surya Ghar-Muft Bijli yojna, solar park development, and the National Wind-Solar Hybrid Policy.
“At the upper price band, the company is valued at P/E of 45x FY25 EPS, implying a post-issue market capitalisation of Rs 6,986.2 crore post issue of equity shares. Considering these factors, the IPO appears fully priced and is rated ‘Subscribe – Long Term’,” said Anand Rathi Research in an IPO note.
Its integrated and strategically located manufacturing facilities enhance operational efficiency and cost control. The company is valued at 40.8x PE based on its FY25 financials, said Bajaj Broking.
Fujiyama Power Systems IPO details
The company aims to raise Rs 828 crores from primary markets through a mix of 2.63 crore fresh shares, amounting to Rs 600 crores and an offer for sale of 1 crore shares aggregating to Rs 228 crores. The company set the IPO price band between Rs 216 and Rs 228 per equity share.
The IPO bidding started on November 13 and closes on November 17. The allotment for the IPO is estimated to be finalised on November 18, while the listing on the bourses, BSE and NSE, is expected to be on November 20, as per the tentative schedule.
About Fujiyama Power Systems
Fujiyama Power System Limited, incorporated in 2017, is one of the leading manufacturers & solution providers in the rooftop solar business. Fujiyama Power plans to strengthen its process by backwards integrating its solar panel facility by setting up a DCR cell plant.
The company plans to further expand its existing capacities in solar panels, inverters & batteries to strengthen its position as a leading domestic solar energy solutions provider. The company aims to expand its reach through a curated distribution model and gradually scale their UTL Solar Shoppe network to meet growing demand.
