Sahaj Solar IPO to open on July 11; check price band, issue size and other key details

The initial public offer (IPO) of renewable energy solutions company Sahaj Solar Limited will open for subscription on Thursday, July 11. Shares of Sahaj Solar Limited will be listed on the NSE Emerge platform. The subscription window for the public issue will be open until Monday, July 15.

For those planning to invest in the Sahaj Solar IPO, here are some important details:

Sahaj Solar IPO: Offer size

Sahaj Solar IPO, valued at ₹52.56 crore, is a book-built offer comprising a fresh issue of 29.2 lakh shares. As much as 50% of the net offer has been reserved for Qualified Institutional Buyers. The company has reserved 35% of the net issue for retail investors and the remaining 15% is set aside for Non-Institutional Investors.

Sahaj Solar Ipo: Price Band, Lot Size

Sahaj Solar IPO price band has been fixed in the range of ₹171 to ₹180 per share. Retail investors can bid for a minimum of 1 lot or 800 shares, which aggregates to ₹1,44,000. High Net Worth Investors (HNIs) can place bids for a minimum of 2 lots or 1,600 shares totalling an investment of ₹2,88,000.

Sahaj Solar IPO: Subscription window, allotment and listing date

The subscription window for Sahaj Solar IPO opens on July 11 and is scheduled to close on July 15. The share allotment status of Sahaj Solar IPO is likely to be finalised on Tuesday, July 16. Successful bidders will receive shares of Sahaj Solar Ltd in their demat accounts on July 18. Refunds for the non-allottees will also be initiated on the same day. Sahaj Solar shares are tentatively scheduled to market debut on Friday, July 19.

Sahaj Solar: Financials

Sahaj Solar’s revenue for the quarter ended March 31, 2024, grew over 8% to ₹201.71 crore compared to ₹185.8 crore in the preceding fiscal. The company’s Profit after tax for FY24 surged 106% to ₹13.37 crore from ₹6.48 crore in FY23. In FY24, the company’s net worth grew over 101% to ₹32.93 crore from ₹16.37 crore in the preceding fiscal.

Sahaj Solar IPO: Key Risks

• According to the company's DRHP, Sahaj Solar’s sales depend heavily on a few large customers. Losing any of these is likely to affect revenues and profitability.
• The renewable energy company conducts its business activities on a purchase-order basis and has not entered into any long-term agreements with its customers.
• Sahaj Solar has also experienced negative cash flows in the past, according to the DRHP. Such negative cash flows could affect the business, results of operations and other prospects.

Sahaj Solar IPO: Key strengths

• Sahaj Solar is ISO-certified and BIS certified and follows production guidelines and accepted international industry standards and practices.
• It enjoys a well-established position in the solar water pumping system segment and was also among the early developers of the Concentrated Photovoltaic System (CPV).

Sahaj Solar IPO: Promoters

Sahaj Solar’s promoters are Pramit Bharatkumar Brahmbhatt, Varna Pramit Brahmbhatt and Manan Bharatkumar Brahmbhatt. The promoters jointly control a 97.09% stake in the pre-issue shareholding which will be reduced to 71.28% after the IPO.

Sahej Solar IPO: Registrar

Kunvarji Finstock Pvt Ltd is the book-running lead manager for Sahaj Solar IPO. Kfin Technologies Limited is the registrar for the NSE SME issue, while Aftertrade Broking is the market maker.

Sahaj Solar IPO: Objectives

Sahaj Solar proposes to utilise the funds raised via the IPO to meet the company's working capital requirements and other general corporate purposes.

Sahaj Solar Limited has three business units that are engaged in photovoltaic module manufacturing, provision of solar water pumping systems and providing Engineering Procurement and Construction (EPC) services.

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