IPO Size: Rs. 828 cr

• Fresh Issue of Rs. 600 cr for (i) part-fund Rs. 272 cr capex to the extent of Rs. 180 cr (ii) debt repayment Rs. 275 cr, of Rs. 688 cr gross debt
• Offer for Sale (OFS) of Rs. 228 cr by the promoter (98.5% stake to shrink to 86.8%)

Price band: Rs. 216-228 per share

• Rs. 75 cr pre-IPO placement on 10^th Nov 2025, at Rs.228 per share by the promoters, of 1.2% holding

M cap: Rs. 6,986 cr, implying 12% dilution

IPO Date: Thu 13^th Nov to Mon 17^th Nov 2025, Listing Thu 20^th Nov 2025

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

Roof-Top Solar Products Manufacturer & Retailer

Fujiyama Solar is Greater Nodia based manufacturer-cum-B2C retailer of solar products under brands UTL Solar and Fujiyama Solar. It has a pan-India network of 725 distributors, 5,546 dealers and 1,100 ‘Shoppe’ franchisees, 600+ service engineers, with Uttar Pradesh accounting for ~40% of Rs. 2,000 cr topline. Company’s channel presence has doubled in past 3.5 years, helping it enjoy 10-15% market share across products.   

Capacity Expansion

Company manufactures following products, at its 4 plants, which are 80% utilised:

1. Solar panels (40% of revenue): expanding capacity from 1.04 GW currently to 3.6 GW by Apr 2026, in addition to 1 GW solar cell line, to be operational by Jan 2026.
2. Power electronics like Inverter, charger, UPS (30% of revenue): doubling 1.7 GW capacity to 3.7 GW
3. Batteries (20% of revenue): comprises 1.8 GW lead acid and lithium-ion capacity, to more than double to 3.9 GW  

Company’s Rs. 272 cr capex plan, Rs. 47 cr, of which, has been deployed, Rs. 180 cr to be funded by fresh issue proceeds and balance through internal accruals/debt, will increase installed capacity by 2 GW each for solar panels, power electronics and batteries, by FY26-end.

High Growth Financials

FY25 revenue stood at Rs. 1,541 cr, with Rs. 258 cr EBITDA and 16.7% EBITDA margin. Net profit was at Rs. 156 cr, translating into 10.1% net margin. Q1FY26 revenue of Rs. 597 cr exceeds full year FY22 revenue of Rs. 507 cr, while net margin has doubled to 11.3% from 5.6% during this period. Q1FY26 net margin expanded to 11.6%, on net profit of Rs. 68 cr. EPS for Q1FY26 and FY25, stood at Rs. 2.4 and Rs. 5.6 respectively. On Rs. 688 cr gross debt, as of 30.9.25, current net-debt to equity ratio stands at 1.5:1, which will shrink to 0.4:1 post debt repayment and equity expansion through the IPO.

Attractive Pricing

M cap of Rs. 7,000 cr and Enterprise value of Rs. 7,130 cr implies a PE multiple of 24.4x, on FY26E EPS of over Rs. 9. This is seen attractive for track record of fast growth 11%+ net margin, 39% RoE and capacity expansion underway.

While company’s 25% of total purchases come from China, solar cell backward integration will reduce dependance. Also, global solar supply chain is dominated by China. Another risk of solar panel and battery pricing declined sharply remains (down 40% YoY in FY25, but company’s margins were not impacted previously.