Solar IPO Alert: Fujiyama Power Systems Sets Sights on Expansion
Fujiyama Power Systems, based in Greater Noida, is a leading player in India’s rooftop solar industry, specializing in on-grid, off-grid, and hybrid solar systems, has filed draft papers with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The IPO aims to raise funds to support the company’s expansion and operations as it continues to grow its presence in the solar energy sector.
IPO Structure
The IPO consists of two main components:
- Fresh Issue of Equity Shares: Fujiyama Power Systems plans to issue new equity shares worth up to Rs 700 crore.
- Offer-for-Sale (OFS): Promoters of the company, Pawan Kumar Garg and Yogesh Dua, will each sell one crore equity shares.
In addition to the fresh issue and OFS, the company may raise up to Rs 140 crore through a pre-IPO placement. If this pre-IPO placement is successful, the size of the fresh issue will be adjusted accordingly.
IPO Management
The IPO process for Ather Energy is being managed by a team of financial institutions, with Motilal Oswal Investment Advisors Ltd and SBI Capital Markets Ltd serving as the book-running lead managers, while Link Intime India Pvt Ltd has been appointed as the registrar for the issue.
Use of IPO Proceeds
The funds raised from the fresh issue will be utilized for several key purposes, including establishing a new manufacturing facility in Ratlam, Madhya Pradesh, repaying the company's existing debts, and addressing various general corporate needs.
Company Profile
Fujiyama Power Systems is a prominent player in India's rooftop solar industry, specializing in on-grid, off-grid, and hybrid solar systems. The company has established a strong brand presence through its well-known brands, "UTL Solar" and "Fujiyama Solar." With UTL Solar boasting a legacy of 28 years in the industry, Fujiyama Power Systems has further solidified its reputation in the market.
Business Operations and Growth
Fujiyama Power Systems operates three manufacturing facilities and has made significant investments in research and development within India, with a focus on technological advancements in the solar industry and product innovation to meet evolving market demands. The company is also expanding its operations by developing a new solar panel manufacturing facility in Dadri, Uttar Pradesh, and adding another inverter line at its Greater Noida facility. These initiatives reflect Fujiyama Power Systems' commitment to increasing its production capacity and addressing the growing demand for solar energy solutions.
Sales Performance
Over the past three financial years and the six months ending September 30, 2024, Fujiyama Power Systems has recorded sales of 12.25 lakh solar panels generating 458.14 MW, 6.31 lakh solar inverters with a capacity of 1,065.83 MW, and 8.52 lakh batteries delivering 1,672.17 MWh.
Financial Performance
For the six months ending in September 2024, Fujiyama Power Systems reported strong financial performance, with a net profit of Rs 75.1 crore and revenue of Rs 721.7 crore. This highlights the company’s continued growth and profitability in the solar energy sector.
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