GRE Renew Enertech Limited Makes Weak Debut with 8.57% Decline, Lists at ₹96.00 Against Solid Subscription

GRE Renew Enertech Limited, engaged in solar energy solutions and LED lighting products offering rooftop and ground-mounted solar installations plus indoor and outdoor LED lighting solutions originally manufacturer of LED lighting now primarily focusing on solar energy operating through CAPEX model where consumers own and fund solar systems with EPC services managing engineering, procurement, construction, and commissioning plus RESCO model where company funds and owns rooftop solar systems earning annuity income, on-grid rooftop systems reducing electricity bills, hybrid solar rooftop systems combining panels, batteries, and grid access, and high-efficiency PV modules, made a weak debut on BSE SME on January 21, 2026. After closing its IPO bidding between January 13-16, 2026, the company commenced trading with a decline of 8.57% opening at ₹96.00 and touched ₹99.00 (down 5.71%).

GRE Renew Enertech Limited Listing Details

GRE Renew Enertech launched its IPO at ₹105 per share with minimum investment of 2,400 shares costing ₹2,52,000. The IPO received solid response with subscription of 16.53 times - individual investors at 14.10 times, QIB at 14.69 times, NII at 24.67 times.

First-Day Trading Performance

Listing Price: GRE Renew Enertech opened at ₹96.00 representing decline of 8.57% from issue price of ₹105.00, touched high of ₹99.00 (down 5.71%) and low of ₹93.00 (down 11.43% hitting lower circuit), with VWAP at ₹96.00.

Growth Drivers and Challenges

Growth Drivers:

Solar Energy Focus: Comprehensive solar solutions through CAPEX and RESCO business models, EPC turnkey solutions from design to commissioning, rooftop on-grid systems, hybrid solar systems, high-efficiency PV modules.

Growth Trajectory: Revenue of ₹84.37 crore in FY25, PAT of ₹7.03 crore, ROE of 26.89% in FY25 (declining to 12.04% September 2025), ROCE of 29.60%, RoNW of 26.89%, PAT margin of 8.39%, EBITDA margin of 11.33%.

Expansion Plans: ₹32.61 crore for setting up 7.20 MW (AC) / 9.99 MW (DC) ground mounted solar power plant expanding generation capacity.

Challenges: 

Market Rejection Despite Subscription: Opening decline of 8.57% followed by lower circuit hit at 11.43% down creating investor losses despite solid 16.53x subscription, issue appears fully priced according to analyst.

Financial Inconsistency: Analyst highlights posted inconsistency in top and bottom lines across reported periods, revenue declining from ₹92.15 crore in FY24 to ₹84.37 crore in FY25, PAT declining from ₹9.91 crore to ₹7.03 crore, ROE declining from 26.89% in FY25 to 12.04% in September 2025.

Operational Risks: Minimal debt-to-equity of 0.05, significant promoter dilution from 95.06% to 69.99%, RESCO model facing challenge of securing low-cost capital, vulnerable to solar panel price volatility.

Utilisation of IPO Proceeds

Solar Power Plant: ₹32.61 crore for setting up 7.20 MW (AC) / 9.99 MW (DC) ground mounted solar power plant representing majority of proceeds expanding generation capacity.

General Corporate Purposes: Remaining proceeds for general corporate purposes supporting operational needs.

Financial Performance

Revenue: ₹84.37 crore for FY25, decline from ₹92.15 crore in FY24..

Net Profit: ₹7.03 crore in FY25, decline from ₹9.91 crore in FY24.

Financial Metrics: ROE of 26.89% in FY25 declining to 12.04% September 2025, minimal debt-to-equity of 0.05, ROCE of 29.60% declining to 15.30%, PAT margin of 8.39%, EBITDA margin of 11.33%, price-to-book of 3.54x, post-issue EPS of ₹5.60, P/E of 18.75x, borrowings of ₹1.59 crore, and market capitalisation of ₹137.16 crore representing weak listing with 8.57% opening decline followed by lower circuit creating 11.43% maximum losses despite solid subscription of 16.53 times and solar energy growth narrative.