GPES Solar shares shine bright in debut trade, list at 300% premium on NSE SME

The GPES Solar stock opened the session at ₹375, up 299% or nearly four times its initial public offering (IPO) price of ₹94 apiece. Within minutes of trade, the stock jumped further to hit the 5% upper circuit at ₹393.75.

Since the minimum bid quantity in the GPES Solar IPO was 1,200 shares, successful bidders who were allotted shares would have been sitting on a profit of at least ₹3.37 lakh (₹281 x 1,200) as soon as trading began in the stock.

The GPES Solar IPO saw huge investor interest when it was open for subscription from June 14-19. The public offer was oversubscribed by a stunning 856 times. Non-institutional investors led the demand, with the quota reserved for them getting overbooked by 1,825 times.

The retail category was overbid 237 times, while the portion reserved for qualified institutional buyers (QIB) was subscribed 793 times.

The GPES Solar IPO was a 100% book-built issue that aimed to raise a total of ₹30.79 crores. It was a fresh issue of 32.76 lakh shares with a face value of ₹10 each, with no offer-for-sale (OFS) component.

The GPES Solar IPO price band was fixed at ₹90-₹94 per share, with the lot size being 1,200 shares.

GPES Solar announced that of the proceeds from the fresh issue, it planned to invest around ₹7.6 crore in its subsidiary Invergy India Pvt Ltd for the purchase of plant and machinery and other miscellaneous assets. A portion of the funds raised would also go towards construction/civil works for its facility. Another ₹12.45 crore would be utilised to meet the company's working capital requirement.

Ahead of the IPO launch, GPES Solar raised ₹8.3 crore from five anchor investors by allocating them 8.83 lakh shares at ₹94 apiece.

Established in 2010, GP Eco Solutions specialises in delivering solar energy products such as solar inverters and solar panels directly to consumers via a network of solar system integrators, channel partners, and installers.

The company is an authorised distributor of ‘Sungrow India’ for solar inverters in North India. It is also an authorised distributor for Saatvik Green Energy and LONGi Solar Technology for solar panels in North India.

In 2022-23, GP Eco Solutions’ revenue stood at ₹104.5 crore compared to ₹83.5 crore in 2021-22. During the recently concluded financial year 2023-24, the company recorded a revenue of ₹78.6 crore in the first nine months till December 2023.

Net profit in FY23 stood at ₹3.7 crore compared with ₹2.8 crore in FY22. For the first nine months of FY24, net profit rose to ₹4.7 crore.