Solar energy and renewables is buzzing theme across the primary market with severa new players joining in. Solarworld Energy Solutions, a Noida-based EPC (engineering, procurement and construction) services provider for solar projects is the latest. The Rs 490 crore IPO will be opening on September 23.
The three-day subscription window runs till September 25. But should you consider applying? Let’s take a look at the 7 key things investors need to know before taking a call –
Solarworld Energy Solutions IPO: Issue size and structure
Through this IPO, the company is raising Rs 490 crore through a mix of fresh equity and an offer-for-sale (OFS). A fresh issue of 1.25 crore shares will bring in Rs 440 crore, while promoter entity Pioneer Facor IT Infradevelopers is offloading 14 lakh shares worth about Rs 50 crore.
Furthermore, the IPO price band has been fixed between Rs 333-351 per share, with a face value of Rs 5.
Solarworld Energy Solutions IPO: GMP trend
In the grey market, Solarworld Energy Solutions is trading at a premium of around Rs 68. This indicates a potential listing price of Rs 419 per share. This is about 19% higher than the upper end of the price band.
While GMP (grey market premium) is not official data and should be treated with caution.
Solarworld Energy Solutions IPO: Promoters and management control
Solarworld Energy Solutions is led by managing director Kartik Teltia, whose current three-year term began in September 2024. The promoters, including Pioneer Facor IT Infradevelopers, Kartik Teltia, and Mangal Chand Teltia, hold majo stakes in the company. The board has six directors, including two independent members, one of whom is a woman director.
Solarworld Energy Solutions IPO: Financial performance of the company
The company has built its business around providing EPC services for solar power projects. Over the last three years, Solarworld’s revenue rose from Rs 501.02 crore in FY24, and further to Rs 544.77 crore in FY25. Profits have surged even faster to Rs 77.05 crore in FY25.
Solarworld Energy Solutions IPO: Fund utilisation
A large part of the IPO proceeds will be used to fund expansion at Kartik Solarworld Private Limited (KSPL), where Rs 575.30 crore will be invested for the Pandhurana project. The rest will be set aside for general corporate purposes.
Solarworld Energy Solutions IPO: How it stacks up against peers
Solarworld operates in a crowded and competitive industry. NTPC Green Energy, Adani Green, ACME Solar, , and Tata Power are some of its already listed peers.
Solarworld remains focused on EPC contracts rather than full-scale power generation, which gives it agility but also leaves it vulnerable to pricing pressures.
Solarworld Energy Solutions IPO: Risk factors
Some of the risk factors mentioned by the company in the DRHP filing include –
“Our installation and construction activities are subject to cost overruns or delays or completion risks which may have an adverse impact on our operations.”
“We may be unable to accurately estimate costs under fixed-price EPC contracts. Any failure to accurately estimate costs or manage our supplier relationships, may increase our construction costs and working capital requirements which may have a material adverse effect on our financial condition, cash flow and results of operations.”
“Any failure to maintain the quality and performance guarantees under our EPC contracts or delays in completing the construction of solar power projects, may increase our construction costs and working capital requirements which may have a material adverse effect on our financial condition, cash flow and results of operations.”