Here’s a detailed review of the Saatvik Green Energy IPO (Sep-2025), including key facts, strengths, risks, valuation, and whether it might suit different kinds of investors. If you want, I can also give a shorter “should I apply?” verdict at the end.
Key Facts & IPO Details
| Parameter | Details |
|---|---|
| IPO open date | 19 September 2025 |
| IPO close date | 23 September 2025 |
| Listing date | 26 September 2025 (on NSE & BSE) |
| Issue size | ₹900 crores total |
| Fresh issue | ~₹700 crores |
| Offer for Sale (OFS) | ~₹200 crores |
| Price band | ₹442 to ₹465 per share |
| Face value per share | ₹2 each |
| Lot size (minimum) | 32 shares → about ₹14,880 (at top of band) |
| Use of proceeds | Repayment/pre-payment of debt, expansion of capacity (module/cell facility in Odisha), investment in subsidiary, general corporate purposes. |
Business / Company Overview
- Saatvik Green Energy Ltd is a solar PV module manufacturer and also provides EPC services.
- As of ~June 2025, its module manufacturing capacity is ~3.80 GW.
- They are building/plan to build more capacity: including a 4 GW solar PV module plant in Odisha, and investments in their subsidiary for backward integration.
- Their revenue has grown fast: FY-2024 → FY-2025, revenue roughly doubled (from ~₹1,097 crores to ~₹2,192 crores) and profit after tax (PAT) also more than doubled.
Financials & Valuation Metrics
Here are some of their financials (pre-IPO) and key metrics:
- Revenue (FY25): ~₹2,192.47 crores
- PAT (FY25): ~₹213.93 crores
- Return on Equity (RoE): ~63.41%
- Return on Capital Employed (RoCE): ~60.45%
- EBITDA margin: ~16.4%
- Debt-to-equity ratio: ~1.36
- EPS (Basic): ~₹19.09 per share (pre-issue)
Valuation at issue price (rough):
- If the issue price is ₹465, then P/E based on EPS of ~₹19.09 gives P/E ≈ 24-25× or so.
- Compared to peers (other solar / module manufacturers), this seems somewhat aggressive but not extreme given their recent growth.
Strengths
Here are some positive points / tailwinds for Saatvik Green Energy IPO:
- Strong growth: Revenue & profits are growing fast, indicating demand for their modules/services.
- Scalable expansion plan: They are expanding capacity, including large module/cell plants, which could give them economies of scale.
- Good margins and returns: High RoE, RoCE suggest efficient use of capital.
- Sector tailwinds: Solar / renewable energy is a focus of government policy, which could help with incentives, subsidies, favorable regulations, etc.
- Debt repayment: Part of proceeds goes to reducing debt, which might improve balance sheet leverage.
- Grey market premium (GMP): There is evidence of some positive market sentiment before listing (GMP being positive suggests people expect listing gains).
Risks / Weaknesses
But there are important risks and concerns to consider:
- Capital intensity and high capex: Solar module and cell manufacturing require heavy upfront investment; expansion plans could strain financials if not managed well.
- Raw material / input cost volatility: Solar panels/modules rely on components (silicon, cells, etc.) whose costs can vary, especially with global demand/supply, trade tariffs, shipping.
- Competition: There are other strong players in India (e.g. Waaree Energies, Adani Solar, Tata Power Solar, etc.), some with deeper pockets or more integrated operations. Competing on cost, quality, scale will be challenging.
- Policy / regulatory risk: Renewable energy is sensitive to government policies, subsidies, duty/anti-dumping rules, foreign trade exposure. Changes can quickly impact margins.
- Valuation risk: While growth is strong, paying a P/E in the 20s means expectations are high; if growth slows, the stock could be punished.
- Leverage / debt load: Although debt repayment is part of the IPO objective, existing debt and borrowing costs could be burdensome, especially if interest rates remain high.
Saatvik Green Energy IPO – FAQs
1. What is the IPO issue size of Saatvik Green Energy?
👉 The IPO size is ₹900 crores, including a fresh issue of ₹700 crores and an OFS of ₹200 crores.
2. What is the price band of Saatvik Green Energy IPO?
👉 The price band is ₹442 to ₹465 per share.
3. What are the IPO opening and closing dates?
👉 The IPO opens on 19 September 2025 and closes on 23 September 2025.
4. What is the minimum lot size for retail investors?
👉 The minimum application is 32 shares, costing about ₹14,880 at the upper price band.
5. When will the IPO allotment and listing happen?
👉 Allotment is expected on 24 September 2025 and listing on 26 September 2025.
6. On which stock exchanges will it list?
👉 The shares will be listed on NSE and BSE.
7. Who are the book running lead managers (BRLMs) of the IPO?
👉 The lead managers are DAM Capital Advisors, Ambit Private Limited, and Motilal Oswal Investment Advisors.
