Vikram Solar IPO Listing News: Solar energy solutions provider Vikram Solar’s shares debuted in the secondary market on a decent note on Tuesday, August 26.

The stock began its journey on BSE at Rs 340 apiece, marking a premium of Rs 8, or 2.4 per cent, over the issue price.

On NSE, the Vikram Solar stock — traded with the symbol VIKRAMSOLR on both bourses — at Rs 338, a premium of Rs 6, or 1.8 per cent.

The Kolkata-headquartered company’s initial public offer concluded last Thursday with a total subscription of 54.6 times.

Zee Business Managing Editor Anil Singhvi had recommended applying for the IPO for listing gains and from a medium-term perspective.

Vikram Solar listing falls short of market guru Anil Singhvi’s expectations

The market wizard had expected the stock to list in the range of Rs 370-380 apiece. This translates to a premium of 11-14.5 per cent over the upper end of the issue price range. 

What next?

Singhvi suggests investors keep holding the stock with a trailing stop loss below Rs 350. 

Here’s everything else to know about Vikram Solar:

EDITOR’S TAKE | Here’s how market guru Anil Singhvi views Vikram Solar

Singhvi has identified the following key points about Vikram Solar:

Positive:

• Experienced promoters with a strong growth track record
• The company has an aggressive expansion plan to enhance its capacity almost four times in next three years
• The company has reduced export dependency; it now earns almost its entire revenue from the domestic market
• A healthy and diversified order book
• A strong brand with a reputed clients list
• Vikram Solar is a profitable company with positive cash flows
• It has achieved a significant reduction in its debt

Negative: 

• The company has huge raw material imports from China as well as Eastern and South Asian countries
• Out of its total revenue, about 77 per cent comes from its top five customers
• It has a low market share of 4% in a highly competitive industry
• There is a safeguard duty of Rs 148 crore as certain receivables are under a legal dispute
• The stock’s valuations are expensive compared to peers

ALSO READ: Vikram Solar IPO Final Day: Rs 2,000 crore issue subscribed over 54 times

Vikram Solar IPO

The IPO — comprising fresh issuance worth Rs 1,500 crore and an offer for sale (OFS) to the tune of Rs 579 crore — was open for subscription from August 19 to August 21.

According to provisional exchange data, the portions set aside for QIBs and NIIs were booked 142.8 and 50.9 times, respectively.

The portion meant for retail investors saw a subscription of 7.7 times the equity on offer, according to the data.