IPO Size: Rs. 2,900 cr 

• Fresh Issue of Rs. 2,144 cr to repay Rs. 1,621 cr of Rs. 1,787 cr net debt
• Offer For Sale (OFS) of Rs. 756 cr by the promoter (100% to shrink to 81% post IPO)

Price band: Rs. 206-217 per share

M cap: Rs. 15,023 cr, implying 19% dilution

IPO Date: Tue 11^th Nov to Thu 13^th Nov 2025, Listing Tue 18^th Nov 2025

Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.

Bengaluru-based Integrated Solar Module Manufacturer

Emmvee Photovoltaic has 7.8 GW and 2.9 GW installed capacity for solar module and cell in Karnataka respectively. Of this, effective installed capacity is 6 GW solar module and 2.1 GW solar cells, as certain capacity, based on old technology is now redundant. Order book stands at 5.36 GW as of 30.6.25, up from 4.9 GW as of 31.3.25.

Planned Capacity Increase

The IPO is being undertaken to repay loans, taken to fund existing capacity.

Over the next 18-24 months, Emmvee plans to increase module capacity to 16.3 GW and triple cell capacity to 8.9 GW, at at investment of Rs. 5,500 cr, to be part-funded via Rs. 3,300 cr debt. Of this, 2.5 GW module capacity is likely to be operational in FY26E itself.

Thus, the capacity expansion, at an approximate capex of Rs. 600 cr per GW cell capacity and about Rs. 200 cr GW for module, will not be funded via IPO proceeds.

Integrated Operations support High Margins

Q1FY26 saw full capacity being in operation, with revenue at Rs. 1,028 cr, EBITDA Rs. 362 cr, translating into 35% EBITDA margin and PAT of Rs. 188 cr, leading to 18% net margin. Integrated operations similar to Waaree, Premier and Websol lead to strong margin profile. Emmvee’s Q1FY26 EPS stood at Rs. 3.2.

Net debt to equity ratio of 2.5:1 will drop to 0.1:1 immediately post IPO. However, it will be closer to 0.9:1 one year from now.  

Inline Pricing

M cap of Rs. 15,000 cr, leads to a PE multiple of 18x, on one year forward basis. FY27E is a more appropriate basis for valuation, as new capacity will be funded via fresh debt and not IPO proceeds, so Emmvee’s net debt to equity will remain elevated, as against minimal debt for large integrated peers Waaree and Premier Energies, ruling around PE of 24x, on FY27E basis. Besides a stronger balance sheet, peers have announced a higher degree of forward (battery energy storage system) and backward integration (ingot).  

Recent solar energy IPOs such as Saatvik and Vikram have not rewarded investors, which is likely to weigh on Emmvee IPO too.