Vikram Solar Share Price IPO Synopsis & Financial Highlights By Altius Investech

1. VIKRAM SOLAR SHARE PRICE: IPO SYNOPSIS & FINANCIAL HIGHLIGHTS BY ALTIUS INVESTECH

2. 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 company’s 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.

3. Brand Portfolio Vikram Solar doesn’t just make solar panels – they also provide complete solar energy solutions. They’ve 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 they’re built, offering maintenance services for over 900 MW of solar energy projects. They’re 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, they’ve sorted out their supply chain, making it easier to get the materials they need on time and at a good price.

4. Award and Recognition 1. 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 Quarter’s 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 Quarter’s Sundowner Award (Year): Mr. Gyanesh Chaudhary, the driving force behind Vikram Solar, was honored as one of the 100 Most Powerful Solar Business Leaders.

5. Vikram Solar: Key Strengths 1. 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 government’s emphasis on developing solar capacity, coupled with increased import duties and geopolitical factors such as anti-dumping duties on Chinese imports and Europe’s 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.

6. Vikram Solar: Key Weaknesses 1. 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 company’s 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 company’s focus on manufacturing activities and reduced reliance on EPC contracts.

7. 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.

8. IPO Synopsis Vikram Solar planned to raise Rs. 2000 crores through an IPO. 1. 2. 3. 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.

9. Risks 1. Vikram Solar’s 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 Solar’s business.

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