Exploring Vikram Solar IPO & GMP: What You Should Know

1. Introduction to Vikram Solar

Vikram Solar is one of India’s leading solar photovoltaic (PV) module manufacturers, with a strong presence in both domestic and international markets. As of March 31, 2025, the company boasts an operational module manufacturing capacity of 4.5 GW and has ambitions to scale to 15.5 GW by FY26 and 20.5 GW by FY27. It operates advanced facilities in West Bengal and Tamil Nadu and is expanding its footprint based on growing solar energy demand.

2. IPO at a Glance

• Price Band: ₹315 (floor) to ₹332 (cap) per share.

• Total Issue Size: ₹2,079 crore approximately, comprising a fresh issue worth ₹1,500 crore and an Offer For Sale (OFS) of ~1.75 crore shares valued at ₹579.4 crore.

• Subscription Window: Opens on August 19, 2025, and closes on August 21, 2025.

• Allotment & Listing: Allotment is expected by August 22, with listing projected for August 26, 2025.

The IPO is being managed by prominent lead managers such as JM Financial, UBS Securities, Equirus Capital, Nuvama, and PhillipCapital, with MUFG In time India as the registrar.

3. Understanding Grey Market Premium (GMP)

The Grey Market Premium (GMP) reflects investor sentiment before a company officially lists. It indicates the premium (or discount) at which IPO shares trade in unofficial, over-the-counter markets.

As of mid‑August 2025, Vikram Solar’s IPO was commanding a substantial GMP:

• Moneycontrol reports a GMP of over 19%.

• India Today puts the GMP at approximately ₹66, translating to ~19.88% premium — suggesting a potential listing price of around ₹398.

• Mint indicates a GMP of ₹70, implying a potential listing price of about ₹402 — about 21.1% above the upper price band.

• Economic Times (ETMarkets) cites a GMP range of ₹65–70, or a 19.6% premium.

Though slight variations exist across sources, all consistently point to a ~20% expected gain at listing — a strong sign of bullish market sentiment.

4. Why is the GMP So High?

Several factors contribute to this elevated GMP:

Strong Industry Tailwinds

India’s renewable energy push is in full swing, and companies like Vikram Solar stand to benefit from both domestic demand and global export potential.

Growth Ambitions & Capacity Expansion

The company’s aggressive expansion plans — scaling manufacturing capacity — align with projected solar deployment strategies in India.

Financial Fundamentals

FY 2024–25 financials show revenue of ₹3,459.5 crore and net profit of ₹139.8 crore, marking significant growth from the previous year. These figures add confidence to investor expectations.

Scarcity & Demand Dynamics

High demand for IPO shares, particularly in the grey market, can inflate GMP, especially for first-time issuers with strong business models.

5. What GMP Means for Investors

For Retail Investors:

• A high GMP indicates strong listing gains, but it's not guaranteed—expect volatility.

• GMP can change rapidly; it’s vital to monitor it close to IPO closing.

• GMP doesn’t reflect long-term fundamentals; use it as a short-term indicator only.

For Institutional Investors:

• GMP can be a sentiment gauge but should be balanced against intrinsic valuation and strategic fit.

• High GMP may raise expectations and demand strong business rationale.

Important Caveat:

GMP is informal and unregulated. While reflective of sentiment, it can be driven by speculation, making it risky to rely on solely.

6. Comparing GMP with Peers

Vikram Solar’s GMP (~20%) stands out even among other IPOs launching the same week:

• Patel Retail: ~13.3% GMP.

• Shreeji Shipping Global: ~11–12% GMP.

• Gem Aromatics and Mangal Electrical: No GMP reported yet.

Vikram Solar thus appears to be the most anticipated among its peers.

7. Risks and Considerations

Market Volatility: Listing-day dynamics can overturn GMP-based expectations.

Valuation Concerns: At upper price band, P/E stands between 68–72× FY25 EPS — significantly above sector average of - 44× 

Execution Risk: Expansion plans hinge on execution; economic or supply-chain disruptions can impact outcomes.

Regulatory & Market Sentiment: Policy changes or broader market shifts can alter listing trajectory.

8. Investor Checklist Before Applying

Factor	What to Check
Business Model	Market position, capacity, scope, innovation
Financial Strength	Growth trends, profit margins, financial health
Valuation	P/E premium vs. peers, long-term justifiability
GMP Trend	Direction and volatility in pre-listing period
IPO Mechanics	Lot size, reservation categories, timing implications
Exit Strategy	Short-term gain vs. long-term hold rationale

9. Conclusion

The Vikram Solar IPO, opening August 19–21, 2025, comes with a price band of ₹315–332 and strong underlying business fundamentals and capacity expansion plans.

With a GMP hovering around ₹65–70, signaling ~20% expected listing gains, investor expectation is palpable. However, GMP is speculative and should only provide a sentiment snapshot—not drive decisions alone.

Investors should balance this optimism with the company’s metrics, valuation, and individual risk appetite. Whether you’re aiming for quick listing gains or long-term growth, this IPO demands a thoughtful, informed approach.

Paytm's stock slumps in India's largest-ever stock market debut

The Paytm IPO has been in the news for months, but it failed to live up to the anticipation on the day of its public offering.

One97 Communications, the parent firm of India's largest digital payments startup, debuted on Indian stock exchanges on November 18, 2021. From the offering price of Rs 2,150, its share price dropped by up to 26% to 1,603.92 rupees ($21.62) in the morning.

Although it recovered marginally later, it remained at a 9 percent discount. The shares closed today at Rs1,564, down more than 27%.

Paytm has led the country's digital payments industry, notably since the demonetisation operation in 2016. It is backed by numerous global marquee investors. While the initial public offering had all the makings of a blockbuster, the shares were only 1.89 times oversubscribed—2.79 times by skilled investors and 1.6 times by average investors.

From the start, there were numerous red flags on the offer.

Paytm's issues were always on display

Analysts cited the business's expensive values for a corporation that had not produced a profit for the previous eight years. Paytm merely cut costs this fiscal year, resulting in a much narrower loss of Rs1,596 crore compared to the previous year.

Profitability, on the other hand, is still a long way off.

Furthermore, Paytm has spread itself too thin over the years, branching into areas like as payments, financial services, travel, and movie ticketing, as well as fantasy sports and e-commerce. This, too, did not provide the expected results.

"Paytm's dabbling in various business lines prevents it from being a category leader in any business except wallets, which are becoming irrelevant as UPI payments take off... As a result, we have concerns about its capacity to achieve scale while being profitable," stated Macquarie Research in a note to investors.

Competitors with substantial pockets, such as Google Pay and Walmart-owned Flipkart's PhonePe, offered further obstacles.

What should you do if you've been issued Paytm shares?

Investors who have been alloted Paytm shares should book losses and quit, according to stock market analysts. They suggested more promising choices for anyone looking to add a fintech stock to their portfolio.

"Holding this stock isn't going to benefit you." Investors will not be able to exit at a greater price if the listing is poor. A K Prabhakar, head of research at IDBI Capital, told the Business Standard newspaper, "Book a loss here and get out of the stock."

One97 Communications was given a "underperform" rating by Macquarie Research ahead of its IPO, citing a lack of concentration and direction in the company's business plan.

Competition, according to the broking business, is likely to hinder medium-term growth. "Paytm can't generate significant money as a distributor until it lends," it claimed in a study.

Key Risk Factors Need to be considered before applying for Zomato IPO

 

On July 14, Zomato Ltd. will begin a three-day initial public offering, the first by a food technology business in India.

But before you put money in zomato ipo, you should be aware of the following risks:

1. Zomato has a history of operating losses, which company expects to increase in the future.

2. The possibility of a third wave of Covid-19 poses a threat to the virus's recovery.

3. The increased expansion of business resulting from the Covid-19 pandemic may not continue in the future, and Zomato may not be able to maintain its growth rate.

4. If a regulatory or judicial body finds that any of the company's business activities are or have been performed in infringement of the policies, regulatory actions, including monetary fines, may be enforced.

5. For the firm to continue to attract and retain customers, as well as restaurant partners in the network, brand equity must be sustained. Any failure on that front could have a negative effect on the company's growth.

6. Though the internet food service market is currently a duopoly, it has the potential to attract huge players with deep finances as the industry matures.

7. It may not be allowed to engage in certain commercially appealing business operations or investments without prior approval from the government.

8. Big giant player like Amazon already started its food delivery services in Banglore, which probably disturb or divert customer base from Zomato.

Also Read: Systematic Anlaysis of Zomato IPO Review: Zomato IPO Review