Saatvik Green Energy Makes Weak Debut with 3.01% Discount, Lists at ₹451 Against Moderate Subscription

Saatvik Green Energy Limited, the solar module manufacturer and EPC services provider, made a disappointing debut on BSE and NSE on September 26, 2025. After closing its IPO bidding between September 19-23, 2025, the company commenced trading with a 1.08% discount, opening at ₹460 and declining to ₹451 with losses of 3.01%, reflecting cautious investor sentiment towards the solar manufacturing sector despite a moderate subscription response.

Saatvik Green Energy Listing Details

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Saatvik Green Energy Limited launched its IPO at ₹465 per share with a minimum investment of 32 shares costing ₹14,880. The IPO received a moderate response with a subscription of 6.93 times - retail investors at a disappointing 2.81 times, NII at a solid 10.57 times, and QIB at a strong 11.41 times, indicating mixed investor interest with particularly weak retail participation in the solar manufacturing business.

First-Day Trading Performance Outlook

• Listing Price: Saatvik Green Energy share price opened at ₹460, representing a discount of 1.08% from the issue price of ₹465, and declined to ₹451, delivering losses of 3.01% for investors, reflecting negative market sentiment towards the solar sector.

Growth Drivers and Challenges

Growth Drivers:

• Leading Solar Manufacturer: Among India's leading solar module manufacturers, with manufacturing capacity expanded from 125 MW in 2017 to 3.80 GW as of June 2025, offering Mono PERC and N-TopCon modules for diverse applications.
• Capacity Expansion Plans: IPO proceeds of ₹477.23 crore allocated for setting up a 4 GW solar PV module manufacturing facility in Odisha, supporting significant capacity enhancement and market expansion.
• Policy Tailwinds: Well-positioned to benefit from the China+1 regime, anti-dumping duties on Chinese modules, and government initiatives promoting domestic solar manufacturing, providing competitive advantages.

Challenges:

• Extremely High Valuation: Alarming price-to-book value of 43.18x and elevated P/E of 27.63x reflecting excessive valuation multiples far exceeding industry norms, requiring extraordinary growth to justify pricing.
• High Financial Leverage: Elevated debt-to-equity ratio of 1.3,6, indicating substantial financial leverage requiring careful debt management and potential strain on cash flows during capacity expansion.
• Weak Market Reception: Poor listing performance witha  3.01% discount and weak retail subscription of 2.81 times, reflecting investor scepticism about aggressive valuation and sector fundamentals.

Utilisation of IPO Proceeds

• Capacity Expansion: ₹477.23 crore for setting up a 4 GW solar PV module manufacturing facility in Odisha, significantly enhancing production capabilities and market positioning.
• Debt Reduction: ₹166.44 crore for subsidiary investment and ₹10.82 crore for borrowing repayment, to improve financial leverage and reduce interest burden.
• General Corporate Purposes: Supporting business operations, strategic initiatives, and expansion activities for long-term growth in the solar manufacturing sector.

Financial Performance of Saatvik Green Energy

• Revenue: ₹2,192.47 crore for FY25, showing exceptional growth of 100% from ₹1,097.18 crore in FY24, reflecting strong market demand and successful business scaling in solar manufacturing.
• Net Profit: ₹213.93 crore in FY25, representing a remarkable growth of 113% from ₹100.47 crore in FY24, indicating substantial operational leverage and margin expansion benefits.
• Financial Metrics: Outstanding ROE of 63.41%, impressive ROCE of 60.45%, elevated debt-to-equity ratio of 1.36, healthy PAT margin of 9.76%, solid EBITDA margin of 16.40%, and estimated market capitalisation of ₹5,732.44 crore.