Solarium Green Energy IPO Plans Amid Expanding Market

The rapidly growing primary market presents a prime opportunity for Solarium Green Energy Limited. The turnkey solar solutions provider has filed its draft red herring prospectus (DRHP) to launch an initial public offering (IPO) with the Bombay Stock Exchange (BSE). On September 11, 2024, the company officially submitted its DRHP for the BSE SME IPO.

IPO Size and Lead Managers

While the exact size of Solarium Green Energy’s IPO is not yet known, the DRHP indicates that the company plans to issue up to 55 million shares. The registrar of the issue is Link Intime India Private Limited, and Beeline Capital Advisors Private Limited serves as the book-running lead manager (BRLM) for the IPO.

Business Overview

Solarium Green Energy provides integrated solar solutions, offering services for solar projects such as design, engineering, procurement, construction, testing, commissioning, transmission systems, and detailed operation and maintenance (O&M). The Ahmedabad-based company installs both ground-level and rooftop solar power systems for residential, commercial, and industrial (C&I) clients.

Product Offerings and Promoter Group

In addition to its solar solutions, the company supplies photovoltaic (PV) modules, PV inverters, and tariff meters (ABT), among other solar components. Solarium Green Energy’s promoters are Pankaj Vallabhbhai Gothi and Ankit Garg, who play a key role in driving the company’s expansion.

Completed and Ongoing Projects

According to the DRHP, Solarium Green Energy completed 8,506 rooftop residential projects, 152 C&I projects, and 8 government projects by 2024. As of September 11, 2024, the company had 41 ongoing projects valued at Rs 165.3 billion, with new tenders worth Rs 252.86 billion in the pipeline.

Financial Performance

Solarium Green Energy achieved significant revenue growth, with FY24 revenue surging by almost 80% to Rs 177.39 crore, compared to Rs 98.78 crore in FY23. The company’s profit after tax skyrocketed by over 800%, from Rs 1.73 crore in FY23 to Rs 15.58 crore in FY24.

Use of IPO Funds

As outlined in the DRHP, Solarium Green Energy intends to use the proceeds from its IPO to meet working capital requirements and for general corporate purposes.