Introduction
Solarium Green Energy, a prominent player in the solar energy sector, is poised to make a significant entrance into the public market with its upcoming Initial Public Offering (IPO). The company recently submitted a draft red herring prospectus (DRHP) to the SME platform of the BSE, indicating its intent to raise funds through the issuance of equity shares. This article delves into the details surrounding Solarium Green Energy’s IPO, the rationale behind it, and an overview of the company’s business performance.
Details of Solarium Green Energy IPO
As announced on September 12, Solarium Green Energy plans to issue 5.5 million (55 lakh) equity shares through its IPO on the BSE SME platform. Unlike larger IPOs that require filings with the Securities and Exchange Board of India (SEBI), this SME IPO is filed directly with the exchange where the shares will be listed. The funds raised through this offering will primarily be allocated to meet the company’s working capital requirements and for general corporate purposes, enabling further growth and operational expansion.
Why is Solarium Green Energy Launching an IPO?
The decision to launch an IPO stems from the company’s growing need for capital to fuel its expansion and enhance its operational capabilities. In recent years, the demand for renewable energy sources has surged, prompting companies like Solarium Green Energy to capitalize on this growth opportunity. The funds generated through the IPO will not only assist in managing working capital but will also support the development of new projects and infrastructure within the renewable energy sector.
Business Health of Solarium Green Energy
In the financial year 2024 (FY24), Solarium Green Energy reported impressive figures, achieving revenues of ₹177.81 crore and a net profit of ₹15.59 crore. The company’s EBITDA stood at ₹23.78 crore, indicating positive financial health and operational efficiency. Solarium Green Energy, founded by Ankit Garg, an alumnus of IIT Dhanbad, has made a mark in the solar energy industry with a diverse portfolio that includes rooftop installations, photovoltaic (PV) modules, inverters, and availability-based tariff (ABT) meters.
Project Accomplishments
Between FY22 and FY24, Solarium Green Energy successfully completed 8,506 residential rooftop projects, alongside 152 commercial and industrial (C&I) rooftop installations and 8 government projects. Currently, the company is managing 41 ongoing projects valued at ₹165.29 crore, with an additional ₹252.86 crore in new tenders awaiting execution.
Conclusion
As Solarium Green Energy prepares for its IPO, the market watches closely, anticipating how this move will impact the company’s growth trajectory and the renewable energy landscape in India. With strong financials, an expansive project portfolio, and a mission aligned with sustainable energy development, Solarium Green Energy is well-positioned to capitalize on the burgeoning demand for solar energy solutions.
