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Sahaj Solar IPO: Opening Tomorrow – Check GMP, Price Band, and Issue Size

Sahaj Solar IPO: Opening Tomorrow – Check GMP, Price Band, and Issue Size
Photo: Sahaj Solar Ltd.

Sahaj Solar IPO: Opening Tomorrow – Check GMP, Price Band, and Issue Size

The Sahaj Solar IPO is set to begin subscriptions on Thursday, July 11, and conclude on Monday, July 15. The Sahaj Solar IPO price range is ₹171 to ₹180 per share, with a face value of ₹10. A minimum of 800 shares, as well as multiples of those shares, are available for bidding.

Company Background

Promoters and Management

The company’s founders are Pramit Bharatkumar Brahmbhatt, Manan Bharatkumar Brahmbhatt, and Varna Pramit Brahmbhatt. Sahaj Solar is a solar solutions provider with nearly a decade of experience in the majority of renewable energy production areas.

Company Overview

Sahaj Solar stands out in the solar power industry for providing both manufacturing and services. They produce PV modules, offer solar pumping systems, and provide EPC services. Their biggest domestic clients include government agencies such as Maharashtra State Electricity Distribution Co. Ltd., GEDA, HAREDA, PGVCL, DGVCL, and MGVCL, as well as private companies such as Iron Mountain, Tenneco, Valeo, and Mahindra Susten Private Limited.

IPO Details

Subscription Dates

The IPO subscription period runs from July 11 until July 15.

Pricing and Share Allocation.

The price range is ₹171 to ₹180 per share. The allocation is 35% for individual investors, 50% for Qualified Institutional Buyers (QIB), and 15% for Non-Institutional Investors (NII).

Minimum Bid Requirements

Investors must bid for at least 800 shares, and bids are accepted in multiples of 800 shares.

Financial Performance

Recent Financial Growth.

According to the red herring prospectus (RHP), Sahaj Solar Ltd’s profit after tax (PAT) increased by 106.25% and revenue increased by 8.56% between March 31, 2023 and March 31, 2024.

Use of Funds

Working capital requirements

A part of the funds raised through this IPO will be used to cover the company’s working capital needs.

General corporate purposes.

The remaining money will be used for general corporate objectives, supporting the company’s continuous operations and growth.

Market Position

Listed Peers Comparison

Sahaj Solar’s listed peers include Shakti Pumps (India) Ltd with a P/E of 17.34, Zodiac Energy Ltd with a P/E of 51.62, and Solex Energy Ltd with a P/E of 74.18.

Market Premium

The current grey market premium (GMP) for Sahaj Solar IPO is +₹144, indicating a strong investor interest and suggesting an expected listing price of ₹324 per share, which is 80% higher than the IPO price of ₹180.

Investment Considerations

Retail investors

Retail investors have been given 35% of the net offering. This allocation makes the IPO available to modest investors who want to diversify their portfolios with renewable energy firms.

Qualified Institutional Buyer (QIB)

QIBs have received 50% of the net offer. Given the company’s strong market position and prospects for expansion, institutional investors are expected to be active participants.

Non-institutional Investors (NII)

NII (HNI) investors have been allocated 15% of the net offering. High-net-worth people seeking significant gains may find this IPO intriguing due to Sahaj Solar’s excellent financial performance.

Advantages of Investing in Sahaj Solar

Expertise in renewable energy.

With nearly a decade of expertise, Sahaj Solar has established itself as a dependable provider of solar solutions.

Diverse Project Portfolio.

The company is active in a variety of projects, including PV module production, solar pumping systems, and EPC services.

Strong client base.

Sahaj Solar’s client list comprises well-known government and business sector groups, assuring a consistent source of revenue.

Risks and Challenges

Market volatility

The Sahaj Solar IPO, like any other investment, carries market risk. Investors should ready for stock price swings.

Regulatory risks

Changes in government laws and regulations regarding renewable energy may have an impact on the company’s operations and profitability.

Competitive Landscape

Sahaj Solar competes in a competitive market with multiple established companies, which presents hurdles in terms of market share and profitability.

IPO Process

Book Running Lead Manager

Kunvarji Finstock Pvt Ltd is the book-running lead manager for the Sahaj Solar Initial Public Offering.

Registrar & Market Maker

Kfin Technologies Limited is the issue’s registrar, while Aftertrade Broking is the market maker for the Sahaj Solar Initial Public Offering.

Grey Market Premium (GMP)

Current GMP

The grey market premium for Sahaj Solar IPO is +₹144, indicating high demand and investor confidence.

Expected List Price

The estimated listing price for the IPO is ₹324 per share, based on the top end of the price band and the existing grey market premium.

How to Apply for Sahaj Solar IPO

Step-by-Step Guide

  1. Open a Demat Account: Ensure you have an active Demat account.
  2. Log in to Trading Platform: Access your trading platform or contact your broker.
  3. Select Sahaj Solar IPO: Locate the Sahaj Solar IPO in the IPO section.
  4. Enter Bid Details: Input the number of shares and bid price within the specified range.
  5. Submit Application: Complete the application process by submitting your bid.
  6. Wait for Allotment: Check for share allotment status after the subscription period ends.

Important Considerations

Conclusion

The Sahaj Solar IPO is an excellent opportunity for investors interested in the renewable energy sector. Sahaj Solar’s solid financial performance, broad project portfolio, and promising market prospects position it for growth. However, like with any investment, it is critical to carefully assess the risks and undertake extensive research before making a decision.

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