Fujiyama Power Systems Announces Rs 600 Crore IPO Opening November 13

Fujiyama Power Systems, known for its UTL Solar and Fujiyama Solar brands in the rooftop solar industry, is set to launch its IPO on November 13, 2025. This marks the fifth IPO launch of the week. The company aims to raise Rs 600 crore through the issuance of new shares. Additionally, promoters Pawan Kumar Garg and Yogesh Dua will offload 1 crore equity shares via an Offer-for-Sale (OFS), a reduction from the previously planned 2 crore shares.

The IPO will open for subscription on November 13 and close on November 17, with the anchor book opening on November 12. Share allotment is expected by November 18, and trading on the BSE and NSE is scheduled to commence on November 20.

Of the Rs 600 crore fresh issue proceeds, Rs 180 crore will be allocated to establish manufacturing facilities for solar inverters, solar panels, and lithium-ion batteries in Ratlam, Madhya Pradesh. Another Rs 275 crore is earmarked for debt repayment, with the remaining funds designated for general corporate purposes.

Fujiyama Power Systems, which competes with companies like Waaree Energies and Exicom Tele Systems, reported a profit of Rs 67.6 crore on revenues of Rs 597.3 crore for the quarter ended June 2025. For the fiscal year ended March 2025, the company posted a profit of Rs 156.4 crore, a substantial increase of 245.2% from Rs 45.3 crore in the previous fiscal. Revenue for the same period grew by 66.6% to Rs 1,540.7 crore from Rs 924.7 crore.

Motilal Oswal Investment Advisors and SBI Capital Markets are the merchant bankers managing the IPO.

Impact: This IPO presents investors with an opportunity to participate in India's growing renewable energy sector, specifically solar manufacturing. The funds raised will enable Fujiyama Power Systems to expand its production capacity and strengthen its financial position by reducing debt, potentially leading to enhanced market competitiveness and profitability. The expansion aligns with India's push for renewable energy self-sufficiency.

Impact Rating: 7/10

Difficult Terms: * **IPO (Initial Public Offering)**: The process by which a private company offers its shares to the public for the first time, allowing it to raise capital from investors and become a publicly traded company. * **Offer-for-Sale (OFS)**: A method where existing shareholders, such as the company's promoters, sell a portion of their shares to new investors. The proceeds from an OFS go directly to the selling shareholders, not to the company. * **Red Herring Prospectus (RHP)**: A preliminary document filed with the securities regulator (like SEBI in India) that contains detailed information about a company planning an IPO, including its business, financials, risks, and the terms of the offering. It's called 'red herring' because it contains some information that may be incomplete or subject to change. * **Anchor Book**: A private placement of shares to select institutional investors that takes place a day before the IPO opens to the general public. It helps build confidence and price discovery for the IPO. * **Merchant Bankers**: Financial institutions or firms that act as intermediaries between companies issuing securities (like IPOs) and the investing public. They help in managing the entire issue process, including pricing, marketing, and compliance.