Fujiyama Power Systems IPO: Final Bidding Day Sees Mixed Subscription, Rs 828 Crore Issue Nears Close

Fujiyama Power Systems Ltd's Initial Public Offering (IPO) is on its final day of bidding, November 17. The issue aims to raise Rs 828 crore, with shares offered in a price band of Rs 216 to Rs 228 each. A single lot comprises 65 shares.

The offering includes a fresh issue of Rs 600 crore to infuse capital into the company, and an Offer for Sale (OFS) of Rs 228 crore, where promoters Yogesh Dua and Pawan Kumar Garg will sell a portion of their holdings.

As of midday on the third day, the IPO had garnered subscriptions for 45% of the total issue size. The Qualified Institutional Buyers (QIB) segment led the subscription with 81% uptake, indicating significant interest from large institutional investors. However, the retail individual investor segment was subscribed 38%, and the Non-Institutional Investor (NII) category stood at 16% subscription, suggesting a more cautious approach from these investor groups.

Proceeds from the IPO are earmarked for partially financing the establishment of a new manufacturing facility in Ratlam, repaying existing debt obligations, and meeting general corporate purposes.

Fujiyama Power Systems, headquartered in Greater Noida, is a key player in India's integrated rooftop solar solutions market. It provides rooftop solar systems and power backup products under its brands, Fujiyama Solar and UTL Solar, catering to both residential and commercial clients. The company has strategically benefited from the increasing adoption of renewable energy solutions, driven by consumer and business demand for long-term cost savings and independence from grid volatility.

Industry analysis by brokerage firm Master Capital Services Ltd. paints a bullish picture for the broader renewable energy sector. India’s rooftop solar market is projected to grow at a Compound Annual Growth Rate (CAGR) of 40–43% between FY25 and FY30. This growth is supported by favorable government incentives, a decline in solar equipment costs, and heightened awareness regarding energy independence. The rooftop segment's capacity is expected to expand dramatically from 17 GW in FY25 to approximately 90–100 GW by FY30, presenting substantial opportunities for companies with robust manufacturing and distribution networks.

Master Capital Services Ltd. believes Fujiyama Power Systems is well-positioned to capitalize on this trend, citing its comprehensive product portfolio, research and development (R&D) strengths, and established brand presence.

The allotment of IPO shares is anticipated on Tuesday, November 18. Subsequently, Fujiyama Power Systems' shares are scheduled to list on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on Thursday, November 20.

Investors can check their allotment status on the MUFG Intime India portal, the NSE bid verification page, or the BSE IPO status page post-allotment.

Currently, the grey market premium (GMP) for the IPO is flat at zero. Unlisted shares are trading at Rs 228, matching the upper end of the price band, indicating that the market is not pricing in any significant listing gains as of now. The subscription momentum on the final day will be crucial for determining investor sentiment leading up to the listing.

Impact

This news directly affects investors considering participation in the Fujiyama Power Systems IPO. The subscription levels and the grey market premium provide key indicators for potential listing performance. The performance of this IPO could also offer insights into investor appetite for renewable energy stocks in India. The mixed subscription rates and flat GMP suggest a cautious market sentiment towards this offering. Rating: 5/10.

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Difficult Terms and Meanings:

• IPO (Initial Public Offering): The first time a private company offers its shares to the public to raise money.
• Bidding: The process where investors submit their interest and the price they are willing to pay for shares in an IPO.
• Subscription: The extent to which shares offered in an IPO are applied for by investors.
• QIB (Qualified Institutional Buyer): Large financial institutions like mutual funds, insurance companies, and foreign institutional investors.
• Retail Investors: Individual investors who buy shares for their own account, typically in smaller quantities.
• Non-Institutional Investors (NII) / HNI (High Net-worth Individual): Investors who apply for shares above a certain large threshold but are not QIBs. HNIs typically refer to wealthy individuals.
• Fresh Issue: When a company issues new shares to raise capital.
• Offer for Sale (OFS): When existing shareholders (like promoters) sell their shares to new investors during an IPO.
• Promoters: The founders and initial owners of a company who typically retain significant control.
• CAGR (Compound Annual Growth Rate): The average annual growth rate of an investment over a specified period, assuming profits are reinvested.
• GW (Gigawatt): A unit of electrical power, commonly used to measure the capacity of power generation plants, including solar.
• Grey Market Premium (GMP): An unofficial indicator of demand for an IPO, representing the price at which IPO shares trade in the grey market before official listing. A zero GMP suggests no expected listing gain.