Vikram Solar's ₹2,079 cr IPO subscribed 54.63 times on strong demand

Solar module maker Vikram Solar's initial public offer garnered 54.63 times subscription on the last day of bidding on Thursday.

The IPO received bids for 2,47,81,57,740 shares against 4,53,61,650 shares on offer, as per NSE data.

The portion for Qualified Institutional Buyers (QIBs) fetched a huge 142.79 times subscription. Non Institutional Investors' part received 50.90 times subscription while the quota for Retail Individual Investors (RIIs) got subscribed 7.65 times.

Vikram Solar on Monday mobilised ₹621 crore from anchor investors.

The ₹2,079-crore initial public offering (IPO) has a price band of ₹315 to ₹332 per share.

The IPO includes fresh issues of equities worth up to ₹1,500 crore and an offer for sale (OFS) of over 17.4 million shares, valued at around ₹579.37 crore at the upper end of the price band, by its promoters.

Of the fresh issuance, the company plans to use the proceeds for funding capital expenditure for investment in its wholly owned subsidiary, VSL Green Power Private Ltd, for both Phase I and Phase II of the project.

Vikram Solar commenced its manufacturing operations in 2009 with an installed solar PV module manufacturing capacity of 12 MW and has grown to 4.50 GW installed capacity as of the date.

It has two solar PV module manufacturing facilities located in West Bengal and Tamil Nadu, and a solar cell manufacturing facility with two units in Gangaikondan, Tamil Nadu. It has established a pan-India presence, serving 19 states and two Union Territories.

The company's key domestic customers include prominent government entities, such as NTPC, Neyveli Lignite Corporation, and Gujarat Industries Power Company and large private independent power producers (IPPs), like ACME Cleantech Solutions, Adani Green Energy, Azure Power India, JSW Energy and Rays Power Infra, among others.

JM Financial, Nuvama Wealth Management, UBS Securities, Equirus Capital and PhillipCapital are the book running lead managers to the offer.