Solar Power IPO Alert! Fujiyama Systems Opens Today – Rs 828 Cr Funding Goal! Will it Shine Bright?

Renewables

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Updated on 13 Nov 2025, 05:53 am

Fujiyama Power Systems Ltd, a Noida-based maker of rooftop solar products, launched its Initial Public Offering (IPO) on Thursday, November 13, 2025, seeking to raise Rs 828 crore. The subscription period will close on November 17, with shares slated to list on the NSE and BSE on November 20. The IPO comprises a fresh issue of Rs 600 crore and an Offer for Sale (OFS) of Rs 228 crore, with a price band of Rs 216 to Rs 228 per share. The company successfully raised Rs 246.9 crore through anchor investors on November 12, including prominent names like Nippon India Mutual Fund and Tata Mutual Fund, who were allocated shares at Rs 228 each.

Subscription has seen a cautious start, with 2% subscribed by 10:30 am on day one. The retail category booked 4%, while non-institutional investors subscribed 1%. Qualified institutional buyers have not yet placed bids. Notably, the grey market premium (GMP) for Fujiyama Power is zero, indicating no immediate premium or discount sentiment.

Financially, Fujiyama Power has demonstrated robust growth. Revenue more than doubled from Rs 6,641 million in FY23 to Rs 15,407 million in FY25. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) grew significantly from Rs 516 million to Rs 2,485 million, with margins improving from 7.8% to 16.1%. Profit After Tax (PAT) surged nearly sixfold from Rs 244 million to Rs 1,563 million, with PAT margins expanding to 10.2%.

Proceeds from the fresh issue are earmarked for setting up a manufacturing facility in Ratlam (Rs 180 crore), repaying borrowings (Rs 275 crore), and general corporate purposes. Motilal Oswal Investment Advisors and SBI Capital Markets are the book-running lead managers.

**Impact** This IPO could significantly bolster the renewable energy sector, attracting much-needed capital and providing investors with an opportunity to participate in a growing segment of India's economy. The company's strong financial performance suggests potential for good returns if market sentiment and operational execution remain positive post-listing. However, the flat GMP signals caution from the unlisted market. Impact Rating: 7/10

**Difficult terms** * **Initial Public Offering (IPO)**: The process by which a private company offers its shares to the public for the first time, typically to raise capital. * **Offer for Sale (OFS)**: A process where existing shareholders sell their shares to new investors, rather than the company issuing new shares. * **Price Band**: A range within which the IPO shares will be offered to investors. * **Lot Size**: The minimum number of shares an investor must apply for in an IPO. * **Anchor Investors**: Large institutional investors who commit to buying shares before the IPO opens to the public, providing price stability. * **Grey Market Premium (GMP)**: The unofficial premium at which IPO shares are traded in the grey market before listing, indicating demand. * **Revenue**: The total income generated from the sale of goods or services. * **EBITDA**: Earnings Before Interest, Taxes, Depreciation, and Amortization; a measure of a company's operating performance. * **PAT**: Profit After Tax; the net profit remaining after all expenses and taxes have been deducted. * **Book-running Lead Managers**: Investment banks that manage the IPO process for the company. * **Registrar to the issue**: An entity that handles the administrative aspects of an IPO, such as share allotment and refunds.