Fujiyama Power Systems Limited Makes Subdued Debut with 4.21% Decline, Lists at ₹218.40 Against Moderate Subscription

Fujiyama Power Systems Limited, a comprehensive rooftop solar solutions provider manufacturing on-grid, off-grid, and hybrid solar systems with extensive product portfolio of 522 SKUs including solar inverters, panels, and batteries, made a subdued debut on BSE and NSE on November 20, 2025. After closing its IPO bidding between November 13-17, 2025, the company commenced trading with a decline of 4.21% opening at ₹218.40 and touched ₹231.00 (up 1.32%).

Fujiyama Power Systems Limited Listing Details

Fujiyama Power Systems launched its IPO at ₹228 per share with minimum investment of 65 shares costing ₹14,820. The IPO received moderate response with subscription of 2.21 times - retail at 1.05 times, QIB at 5.24 times, NII at 0.92 times (sNII at 1.63 times and bNII at 0.56 times), and employee reservation at 1.55 times.

First-Day Trading Performance

Listing Price: Fujiyama Power Systems opened at ₹218.40 representing decline of 4.21% from issue price of ₹228.00, touched high of ₹231.00 (up 1.32%) and low of ₹215.75 (down 5.37%), with VWAP at ₹225.07, reflecting volatile trading pattern and cautious market sentiment despite moderate subscription and strong financial growth metrics.

Growth Drivers and Challenges

Growth Drivers:

Strong Growth Trajectory: Revenue increased 67% and PAT surged 245% between FY24 and FY25, exceptional ROE of 39.40%, robust ROCE of 41.01%, healthy PAT margin of 10.15%, EBITDA margin of 16.13% demonstrating operational excellence.

Comprehensive Product Portfolio: Extensive range of 522 SKUs including solar PCUs, inverters, panels, batteries, UPS systems, and charge controllers, ISO certified manufacturing facilities in Greater Noida, Parwanoo, Bawal, and Dadri supporting scalable production capabilities.

Robust Distribution Network: Strong market penetration through 725 distributors, 5,546 dealers, 1,100 exclusive franchisees across Tier II, III, and rural regions, 602 qualified service engineers providing maintenance and technical support, establishing strong brand recognition in rooftop solar industry.

Challenges:

Elevated Debt Levels: Debt-to-equity ratio of 0.87, total borrowings of ₹346.22 crore against net worth of ₹396.82 crore, additional debt for Ratlam facility expansion raising financial leverage concerns despite debt repayment allocation from IPO proceeds.

Premium Valuation: Post-issue P/E of 25.84x, price-to-book of 16.09x appearing aggressively priced, subdued listing with 4.21% decline despite strong growth indicating valuation concerns and profit booking by early investors.

Promoter Dilution: Significant promoter stake reduction from 99.67% to 87.88%, competitive rooftop solar market with multiple established players, dependence on government policies and subsidies for solar adoption creating regulatory and demand uncertainty.

Utilisation of IPO Proceeds

Manufacturing Expansion: ₹180.00 crore for part financing establishment of new manufacturing facility in Ratlam, Madhya Pradesh, expanding production capacity and geographical footprint to serve growing solar energy demand.

Debt Repayment: ₹275.00 crore for repayment and prepayment of outstanding borrowings, strengthening balance sheet and reducing interest burden to improve profitability and financial flexibility for future growth initiatives.

General Corporate Purposes: ₹112.32 crore allocated for general corporate purposes supporting working capital requirements, business expansion, and operational needs to sustain high growth momentum across distribution network.

Financial Performance

Revenue: ₹1,550.09 crore for FY25, exceptional growth of 67% from ₹927.20 crore in FY24, reflecting strong market penetration across Tier II, III, and rural regions and expanding product adoption.

Net Profit: ₹156.34 crore in FY25, remarkable growth of 245% from ₹45.30 crore in FY24, demonstrating significant operational leverage and improving profitability with scale benefits and operational efficiency.

Financial Metrics: Exceptional ROE of 39.40%, robust ROCE of 41.01%, debt-to-equity of 0.87, healthy PAT margin of 10.15%, EBITDA margin of 16.13%, price-to-book of 16.09x, post-issue EPS of ₹8.82, P/E of 25.84x, net worth of ₹396.82 crore, and market capitalisation of ₹6,894.25 crore.