Vikram Solar IPO: Allotment, Listing Strategy, and Financial Insights
Welcome to a detailed analysis of the Vikram Solar IPO. This article will cover the allotment status, future listing strategy, and opportunities presented by the IPO based on its Grey Market Premium (GMP) and market response. Stay updated with daily IPO and Grey Market Premium news by subscribing and joining our Telegram group for timely updates.
Vikram Solar IPO Overview and Issue Size
The Vikram Solar IPO had an issue size of approximately 2080 crore. The equity allocation for Qualified Institutional Buyers (QIBs) and Anchor Investors accounted for 49.76% of the total, translating to 3,11,65,200 equity shares. The HNI category, which includes both big and small HNIs, received 14.93% of the shares, amounting to 93,49,560 equity shares. Retail investors also saw significant allotments in this IPO.
Retail Allotment Details
Retail investors received a substantial allocation, with 2,18,15,640 equity shares, representing 34.83% of the total. This means approximately 4,84,792 lots were allocated to retail applicants. In conditions of oversubscription, a minimum of one lot is typically allotted to successful applicants.
Company Financials and Performance
Vikram Solar exhibits strong fundamental performance. The company’s Return on Equity (ROE) is above 16%, and its Return on Capital Employed (ROCE) stands at 24.49%, significantly exceeding the industry average. The company’s debt is well-managed at 0.19, with plans to utilize funds to further reduce its debt, which could positively impact equity. The Return on Net Worth is 11.26%, Profit Before Tax (PBT) Margin is 4.08%, and EBITDA Margin is 14.37%. The Price to Book Value is 8.46.
Financially, the company has demonstrated consistent year-on-year growth in revenue, increasing from 2091 crore to 2523 crore. The total income was later reported as 349 crore. Profit has also shown continuous compounding growth, rising from 15 crore to 80 crore, and currently standing at 140 crore. These figures reflect a positive impact on the company’s overall performance.
IPO Subscription Figures
The Vikram Solar IPO received an impressive response, particularly from institutional investors:
- QIB Category: Subscribed approximately 145 times.
- HNI Category: Subscribed roughly 53 times, with Big HNI at about 60 times and Small HNI at approximately 40 times.
- Retail Category: Subscribed 7.98 times.
- Employee Category: Subscribed 5.10 times.
The total subscription for the IPO reached 56.42 times. Despite four IPOs opening simultaneously, the response was robust. A total of 35 lakh applications were received, with over 4,80,000 lots allocated to retail investors.
Important Dates and Lock-in Periods
For anchor investors, shares valued at approximately 620 crore (1,86,91,200 equity shares) were already allocated. The lock-in period for 50% of these shares (valued at around 310 crore) concludes on September 21st. The remaining 50% can be sold after 90 days, approximately on November 20th. If you did not receive an allotment, refunds would have been processed yesterday. If allotted, shares would have been credited to your Demat account, or will appear by tomorrow morning.
Listing Details and Grey Market Premium (GMP)
The company will list on both BSE and NSE tomorrow (relative to the video’s date), enabling easy buying and selling of shares. As of August 25th, the Grey Market Premium (GMP) for Vikram Solar IPO was ₹41. With an estimated listing price of ₹373, this suggests an approximate listing gain of around 12%. A listing gain above 10% is considered good, while anything around 20% would be exceptional.
Listing Day Strategy
For investors who received an allotment:
- If you are not greedy: Consider booking the listing gains as they materialize.
- If you are looking for further gains: You can hold the shares with a stop-loss. This could be set at 5% below the listing price or 2-3% below the lowest price recorded between 10:00 AM and 10:30 AM on the listing day. If the company lists above 10% and maintains this gain, it could indicate continued positive momentum and potentially a positive closing on the listing day. If the share price drops below a 10% listing gain, it might present a value buying opportunity.
Buying Opportunity for Non-Allottees
For those who did not receive an allotment but are interested in buying: If the company lists with a 5-10% gain and its share price does not fall below this range, one might consider buying for a short-term momentum play, with an appropriate stop-loss.
Long-Term Outlook
For long-term investors, the company’s fundamentals appear strong. However, it is advisable to keep a close watch on any ongoing cases related to the company. Overall, it is considered a promising long-term investment.
