Vikram Solar IPO GMP Slips on Day 2, Subscription Crosses 1.6x; Can It Shine on Listing Day?

Vikram Solar IPO GMP Today: The solar photovoltaic module makers, Vikram Solar Limited's initial public offering (IPO), has been subscribed by 1.62 times on Wednesday so far. Despite seeing investors' interest, Vikram Solar IPO GMP (Grey Market Premium) today fell below Rs 50, indicating a weaker-than-expected listing of the IPO.

Vikram Solar IPO GMP had earlier reached to as high as Rs 72, indicating an upbeat IPO listing at Rs 404 ( GMP+ Base Price). As Vikram Solar's IPO subscription opened this week, its GMP declined marginally over the past two to three days.

Investors must note that an IPO's GMP indicates its demand in the grey market, which is not regulated by any agency. GMP is the difference between the IPO shares traded in the grey market and the issue price fixed by the company.

Hence the GMP is not an authentic measure to gauge an IPO's listing price. An IPO's GMP and its listing price may vary significantly due to multiple factors, including market sentiment, subscription trend, etc.

Vikram Solar IPO Subscription on Day 2

The issue has been subscribed to by around 1.62 times on Wednesdya till 10 am, according to Chittorgarh.com. The issue has been subscribed by 0.02 times from qualified institutional buyers (QIB), 4.07 times by net institutional investors (NII) and by 1.49 times by retail investors. The IPO was subscribed by 1.57 times on day 1, ie Tuesday August 19.

Vikram Solar IPO GMP Today

Vikram Solar IPO GMP on Wednesday stood at Rs 48, according to Chittorgarh.com. Considering the current GMP, Vikram Solar IPO's listing price is expected to be Rs 380, which is the addition of bidding price and GMP. The expected percentage gain or loss per share 14.46%.

Vikram Solar IPO Review

Vikram Solar Limited's installed solar module manufacturing capacity is likely to quadruple in FY26 to 15.5GW. The company's growth is likely to be driven by capacity expansion, robust domestic demand led by multiple levers like PM Surya Ghar Muft Bijli Yojana, PM Kusum Yojana, etc.According to SBI Securities, "At the upper price band of Rs 332, VSL is valued at 85.9x FY25 P/E and 21.4x EV/EBITDA on post issue capital. The valuation is in-line with peers on EV/EBITDA basis. Margin is expected to improve as the solar cell capacity comes onstream in FY27."

Vikram Solar IPO: Should You Subscribe?

SBI Securities has recommended potential inventors to 'Subscribe' Vikram Solar IPO. ". We recommend investors to SUBSCRIBE to the issue at the cut-off price," noted the brokerage in its report.

Vikram Solar IPO Key Details

One of the largest solar photovoltaic module producers in India, Vikram Solar, has fixed its IPO price band at Rs 315-332 per equity share. The IPO is set to go on listing on the NSE and BSE. The Kolkata-based company has planned to raise around Rs 2,079.37 crore of funds with this IPO. Out of this, the company has planned to raise around Rs 1,500 crore through the issuance of fresh shares. Whereas, the remaining Rs 579.37 crore is kept for offer for sale (OFS) route.

Vikram Solar IPO Lot Size

Bidders for the IPO can apply in lots with one unit of the same consisting of 45 company shares. The 50% of the IPO fund is dedicated to qualified institutional buyers (QIB), 35% for retail buyers, 35% is kept for net institutional buyers (NIB).The minimum amount of investment required by retail investors is Rs 14,175 to purchase a single lot of 45 shares. The lot size investment for sNII is 14 lots equivalent to Rs 2,09,160.