Emmvee IPO Drama: Barely 22% Subscribed on Day 3! Will Low GMP Doom Listing?

Renewables

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Updated on 13 Nov 2025, 07:27 am

Emmvee Photovoltaic Power's maiden public issue, aiming to raise Rs 2,900 crore, has seen a lukewarm response on its final day of bidding (November 13). The IPO, which opened earlier this week, has only achieved 22% subscription by the end of Day 3. The total bids received were for approximately 1.7 crore shares against an offer size of 7.74 crore shares. Retail investors have shown the most engagement, subscribing 79% of their allocated portion. However, Non-Institutional Investors (NII) and Qualified Institutional Buyers (QIB) have subscribed much lower, at 16% and 6% respectively.

The subdued investor interest appears linked to tepid Grey Market Premium (GMP) expectations. The unlisted shares of Emmvee Photovoltaic Power were trading at a GMP of just 1.38% to 2.30% over the IPO price band of Rs 206-217 per share. This is a notable drop from the 9% GMP observed just before the IPO opened.

Despite the low subscription and GMP, brokerage firms like Angel One, Anand Rathi, and HDFC Securities have largely recommended a 'Subscribe' rating for long-term investors. They highlight Emmvee's position as a leading integrated solar PV module and cell manufacturer in India, its adoption of advanced TOPCon cell technology, expanding capacities (aiming for 16.3 GW by FY28), and a substantial order book. However, they also caution about key risks, including high customer concentration (top 10 clients contribute nearly 94% of revenue) and dependence on imported raw materials.

Impact: The low subscription and weak GMP suggest a potentially subdued listing performance for Emmvee Photovoltaic Power. This might lead to cautious sentiment among investors towards upcoming IPOs in the renewable energy sector, though the long-term outlook for the company, as per brokerage reports, remains positive if risks are managed effectively. The IPO comprises a fresh issue of Rs 2,143.9 crore and an Offer for Sale (OFS) of Rs 756.1 crore.

Difficult Terms: IPO (Initial Public Offering): The first time a private company offers its shares to the public for subscription on a stock exchange. Subscription: The process where investors place orders to buy shares during an IPO. Grey Market Premium (GMP): The unofficial premium at which shares of a company are traded in the grey market before their official listing on stock exchanges. A low GMP often indicates weak demand or listing expectations. Fresh Issue: When a company issues new shares to raise capital. Offer for Sale (OFS): When existing shareholders sell a portion of their holdings in the company. Retail Investors: Individual investors who apply for shares up to a certain limit (typically Rs 2 lakh). Non Institutional Investors (NII): High net worth individuals and bodies corporate who invest amounts larger than retail investors. Qualified Institutional Buyers (QIB): Large institutional investors like mutual funds, foreign institutional investors, insurance companies, etc. TOPCon cells: Tunnel Oxide Passivated Contact solar cells, an advanced technology that offers higher efficiency compared to conventional solar cells. P/E (Price-to-Earnings) ratio: A valuation metric used to compare a company's stock price to its earnings per share. A higher P/E might suggest higher growth expectations or overvaluation.

Impact Rating: 6/10