GP Eco Solutions: This SME IPO has zoomed over 300% on debut on the NSE

GP Eco Solutions made a stellar stock market debut, with its shares got listed at Rs 375, a whopping 299% against its issue price of Rs 94 per share on the NSE.

GP Eco Solutions India made a stellar stock market debut, with its shares listed at Rs 375, a whopping 299 per cent premium when compared with its issue price of Rs 94 per share on the National Stock Exchange (NSE) on Monday.

At 10:07 am; the stock of the company engaged in the distribution of a wide range of solar inverters and solar panels was locked at its maximum upper limit of 5 per cent at Rs 393.75; quoting 319 per cent over its issue price.  Around 1.36 million equity shares changed hands and there were pending buy orders for 466,800 shares on the NSE, the exchange data shows.

Currently, GP Eco Solutions trades in EMERGE SME platform. The NSE SME scrips, listed under the "ST" group, are traded and cleared & settled on a net basis. NSE said that trades effected in this scrip will be in minimum market lot (i.e. 1,200 equity shares). Security can move from one type of market to another by giving a notice of one month to the Exchange which will be intimated to the market, the exchange said.

GP Eco Solutions IPO got a robust response from investors and was subscribed 856.21 times. The non-institutional investor segment was subscribed 1824.87 times, qualified institutional buyers (QIBs) portion saw a subscription of 236.64 times, and retail individual investors portion by 793.20 times, data shows.

The company is an authorized distributor of Sungrow India Pvt Ltd or “Sungrow” for Solar Inverters in North India, and also authorized distributors for Saatvik Green Energy Private Limited or “Saatvik” and LONGi Solar Technology Co. Ltd or “LONGi” for solar panels in North India.

Additionally, the company serves as an integrated solar energy solutions provider, delivering comprehensive engineering, procurement, and construction (EPC) services to its commercial and residential customers, however the contribution of this segment is comparatively very less as compared to business of distribution of solar inverters and solar panels.

GP Eco Solutions also has its own brand called "Invergy". Under the Invergy brand, they sell hybrid solar inverters and lithium ferro phosphate (LFP) batteries. Invergy deals in OEM manufacturing for hybrid and LFP products.

The Solar Inverter Market size was valued at $7.7 billion in 2022 and is expected to reach $17.9 billion by 2030, at a CAGR of 8.8 per cent from 2022 to 2030.

The India - solar power market size is estimated to grow at a CAGR of 34.24 per cent between 2022 and 2027. The market size is forecast to increase by $273.82 billion. The market is witnessing a growing demand for increasing investments in renewable energy, favourable government regulations, and the increased adoption of microgrids, the company said in Draft Red Herring Prospectus (DRHP).

A key factor shaping the India solar power market growth is the rising adoption of floating solar power plants. One of the emerging technologies that is at a primitive stage across the world is the floating solar power plant. The main advantage of a floating solar power plant is that it can be installed in human-made or natural water bodies such as dam reservoirs, lakes, municipality water storage ponds, and water treatment plants. Additionally, the performance of floating solar power systems is better than the arrays that are built on the land.

Moreover, these floating power plants are cooler than traditional solar power systems due to evaporating water which allows them to operate more efficiently. Some of the other advantages of floating power plants include longer module life and higher efficiency of solar panels due to the cooling effect. Hence, such factors are positively impacting the market which in turn will drive India solar power growth during the forecast period, the company said.