Emmvee Photovoltaic Power IPO Makes Weak Debut with 2.72% Decline, Lists at ₹211.10 Against Poor Subscription

Emmvee Photovoltaic Power Limited, an integrated solar PV module and cell manufacturer incorporated in March 2007 with solar PV module capacity of 7.80 GW and solar cell capacity of 2.94 GW as of May 2025, offering bifacial and mono-facial TOPCon modules and cells and Mono PERC modules from four manufacturing units across two Karnataka locations on 22.44 acres, operating one of India's largest TOPCon solar cell facilities. After closing its IPO bidding between November 11-13, 2025, the company commenced trading flat at ₹217.00 and declined to ₹211.10 with losses of 2.72%, reflecting negative investor sentiment towards the solar manufacturing sector.

Emmvee Photovoltaic Power Limited Listing Details

Emmvee Photovoltaic IPO launched at ₹217 per share with minimum investment of 69 shares costing ₹14,973. The IPO received poor response with subscription of approximately 0.97 times - retail at marginal 1.10 times barely covered, QIB at weak 1.26 times, while NII remained severely undersubscribed at just 0.30 times.

First-Day Trading Performance

Listing Price: Emmvee Photovoltaic opened flat at ₹217.00 matching issue price, touched intraday high of ₹218.85 (up 0.85%) and fell to ₹211.10 (down 2.72%) with low of ₹206.85 (down 4.68%), with VWAP at ₹213.37, delivering losses of ₹5.90 per share.

Growth Drivers and Challenges

Growth Drivers:

• Market Leadership and Integrated Operations: Second largest pure-play integrated solar PV module and cell manufacturer in India, 7.80 GW solar PV module capacity and 2.94 GW solar cell capacity as of May 2025, one of India's largest TOPCon solar cell facilities by capacity.
• Early Mover in Advanced Technology: Early mover advantage in leveraging higher efficiency TOPCon cell technology providing competitive edge, advanced manufacturing units driving efficient and sustainable operations, four manufacturing facilities across two Karnataka locations, valued relationships with diverse customer base including IPPs, C&I sector, and EPC providers backed by substantial order book.
• Exceptional Financial Growth: Revenue increased extraordinary 147% and PAT surged exceptional 1177% between FY24 and FY25, exceptional ROE of 104.60%, solid ROCE of 23.33%, RoNW of 69.44%, healthy PAT margin of 15.80%, strong EBITDA margin of 30.91%.

Challenges

• Extremely High Debt and Aggressive Valuation: Alarmingly high debt-to-equity of 3.63 creating significant financial leverage concerns, total borrowings of ₹2,032.11 crore as of June 2025, post-issue P/E of 20.01x and price-to-book of 24.25x.
• Large Offer for Sale and Execution Risks: Total issue of ₹2,900.00 crore with offer for sale of ₹756.14 crore (26.1% of total), significant promoter dilution from 99.22% to 80.03%, massive ₹1,621.29 crore from IPO proceeds earmarked for debt repayment highlighting financial stress.

Utilisation of IPO Proceeds

Debt Reduction: Massive ₹1,621.29 crore for repayment/prepayment of outstanding borrowings and accrued interest of company and material subsidiary reducing extremely elevated debt-to-equity from 3.63 level addressing financial leverage concerns.

Corporate Purposes: ₹438.71 crore for general corporate purposes providing operational and strategic flexibility. Additionally, ₹756.14 crore through offer for sale by promoters monetizing stake while maintaining 80.03% holding.

Financial Performance

• Revenue: ₹2,360.33 crore for FY25, extraordinary growth of 147% from ₹954.44 crore in FY24, reflecting massive capacity expansion in solar PV manufacturing.
• Net Profit: ₹369.01 crore in FY25, exceptional growth of 1177% from ₹28.90 crore in FY24, demonstrating strong operational leverage.
• Financial Metrics: Exceptional ROE of 104.60%, solid ROCE of 23.33%, alarmingly high debt-to-equity of 3.63, RoNW of 69.44%, healthy PAT margin of 15.80%, strong EBITDA margin of 30.91%, price-to-book of 24.25x, post-issue EPS of ₹10.84, P/E of 20.01x, and market capitalisation of ₹14,618.87 crore.