The shares of Sahaj Solar listed on the NSE SME platform with a premium of 90% on Friday. The stock debuted at Rs 342 as against an issue price of Rs 180.
Ahead of the listing, the company’s shares traded with a premium of nearly 140% over the issue price.
The Rs 52 crore SME IPO of Sahaj Solar was subscribed nearly 472 times at close, driven by robust demand across categories. The IPO is entirely a fresh equity sale of 29.2 lakh shares.
The net proceeds from the public offer will be used to fund working capital requirements and other general corporate purposes.
Sahaj Solar is a provider of renewable energy solutions, manufacturing PV modules, and solar water pumping systems, and provides energy project management (EPC) services.
The company has experience of more than one decade in the majority of the verticals of renewable power generation. It manufactures as well as provides services which gives it an edge in the solar power market. Sahaj Solar is engaged in three businesses of PV module manufacturing, providing solar pumping systems and providing EPC services.
India added around 14 GW8 of solar capacity in 2022, making it the year with the highest annual capacity addition. At the end of December 2022, India’s cumulative solar installations stood at 63.5 GW, making it the world’s fifth largest country in terms of installed solar capacity.
The company recorded growth in both its top and bottom lines. Given that the market is becoming oversaturated, the increase in top and bottom lines for FY23 and FY24 raises questions about their durability. For the year ended March 2024, the company clocked total revenues of Rs 201 crore and net profit of Rs 13.16 crore.
The article originally appeared on The Economic Times.