Vikram Solar Share Price: IPO Synopsis & Financial Highlights (1)

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VIKRAM SOLAR SHARE PRICE IPO SYNOPSIS
FINANCIAL HIGHLIGHTS BY ALTIUS INVESTECH
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Company Overview
Vikram Solar Limited (VSL), founded in 2006 and
headquartered in Kolkata, India, is a leading
provider of solar energy solutions with a strong
focus on the design, manufacturing, installation,
and maintenance of photovoltaic (PV) modules and
solar power systems. Led by Mr. Hari Krishna
Chaudhary and Mr. Gyanesh Chaudhary, along with a
team of seasoned professionals, VSL has
established itself as a key player in the
renewable energy sector. The companys
manufacturing facilities in Falta Special
Economic Zone (FSEZ) in West Bengal and Chennai
boast significant installed capacities, enabling
VSL to produce and export high-quality PV modules
to domestic and international markets.
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Brand Portfolio
Vikram Solar doesnt just make solar panels
they also provide complete solar energy
solutions. Theyve built over 300 solar plants
and are currently working on more, totalling 1.42
GW in capacity. Plus, they take care of these
plants even after theyre built, offering
maintenance services for over 900 MW of solar
energy projects. Theyre also big on rooftop
installations, having completed over 190 projects
across different areas and industries, including
some impressive ones like a massive 5 MW solar
carport at Maruti Udyog Limited. To make sure
everything runs smoothly, theyve sorted out
their supply chain, making it easier to get the
materials they need on time and at a good price.
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Award and Recognition

• ICC 2nd Green Urja and Energy Efficiency Award
  (2022) Recognized for innovative project
  development, Vikram Solar received the Jury
  Choice Award for Product Development at this
  esteemed event on March 23, 2022.
• 2. Solar Quarters India Utility Solar Week
  Awards (2021) Vikram Solar clinched two awards
  in the categories of Company of the Year EPC and
  Outstanding Product Innovation of the Year,
  showcasing its commitment to excellence and
  innovation in the solar energy sector.
• 3. India Rooftop Solar Congress Awards (2022)
  Vikram Solar secured three awards, including EPC
  Company of the Year (Commercial), Company of the
  Year (Module), and Smart Technology Innovation of
  the Year (Solar Module), further highlighting its
  expertise and achievements in rooftop solar
  solutions.
• 4. Solar Quarters Sundowner Award (Year) Mr.
  Gyanesh Chaudhary, the driving force behind
  Vikram Solar, was honored as one of the 100 Most
  Powerful Solar Business Leaders.

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Vikram Solar Key Strengths

• Experienced Management and Established
  Relationships Vikram Solar Limited benefits from
  a management team with over five decades of
  collective experience in the solar business.
• 2. Healthy Order Book Position With an
  unexecuted order book of approximately Rs. 11,500
  crore as of November 2022, VSL enjoys strong
  revenue visibility in the near to medium term.
• 3. Positive Industry Outlook The Indian
  governments emphasis on developing solar
  capacity, coupled with increased import duties
  and geopolitical factors such as anti-dumping
  duties on Chinese imports and Europes quest for
  alternative energy sources
• .
• 4. Significant Improvement in Performance VSL
  has demonstrated substantial performance
  improvement in the current fiscal year,
  attributed to the execution of variable price
  contracts.

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Vikram Solar Key Weaknesses

• Moderate Financial Risk Vikram Solar Limited
  maintains a moderate financial risk profile with
  a healthy net worth and moderate gearing despite
  weak debt protection metrics. While tangible net
  worth declined to Rs. 435.62 crore as of March
  31, 2022, the companys Debt-to-Equity ratio
  stood at 1.50. However, weak Interest Coverage
  Ratio (ICR) and Debt Service Coverage Ratio
  (DSCR) present challenges, though an improvement
  is expected with enhanced accruals and no major
  debt-funded capital expenditure plans.
• 2. Working Capital Intensity VSL operates in a
  working capital-intensive environment, evidenced
  by high Gross Current Assets (GCA) and extended
  debtor periods. Despite this, inventory holding
  levels are comfortable, and Acuité anticipates
  improved working capital management due to the
  companys focus on manufacturing activities and
  reduced reliance on EPC contracts.

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Share Price of Vikram Solar

• The buy price of Vikram Solar varies based on
  quantity, ranging from ?226 for quantities
  between 100 250 shares to ?222 for quantities
  between 2501 4878 shares, with corresponding
  rates per share.
• The 52-week high is ?425, and the 52-week low is
  ?166, indicating the range of fluctuations in the
  share price.
• Currently, Vikram Solar is trading at around Rs.
  270/share.

Buy Vikram Solar Unlisted Shares from Altius
Investech.
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IPO Synopsis

• Vikram Solar planned to raise Rs. 2000 crores
  through an IPO.
• Fresh Issue Rs. 1500 Crs
• Offer for sale 5 million shares
• DRHP Filing 6th March 2022
• The company might also consider selling shares
  for Rs. 300 crores before the IPO, which could
  change the original plan.
• The people selling shares include Anil Chaudhary,
  Girish Kumar Madhogaria, Pushpa Madhogaria, and
  Vikram India Ltd. The leading companies helping
  with this process are JM Financial Limited and
  Kotak Mahindra Capital Company Ltd.

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Risks

• Vikram Solars success depends on how well it can
  build new factories and make more solar panels
  without spending too much money. This can be
  risky and uncertain.
• 2. The company might not benefit from government
  policies, like the PLI scheme, which could affect
  its business.
• 3. Vikram Solar does not have long-term
  agreements with the people who supply them with
  materials to make solar panels. This means they
  could face problems if these materials become
  hard to get.
• 4. The company makes most of its money from
  selling one main product.
• 5. If the prices of the things they need to make
  solar panels, like wafers and solar cells, change
  a lot, it could affect Vikram Solars business.

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