Solarium Green Energy shares hit 5% upper circuit after listing at 6% premium on BSE SME; check details

Amid the stock market mayhem, shares of Solarium Green Energy Ltd managed a positive trading debut on Thursday, February 13, listing at a nearly 6% premium to the issue price.

Solarium Green Energy stock opened the session at ₹202 apiece on the BSE SME platform, up 5.8% from its initial public offering (IPO) price of ₹191 per share. Within minutes of the session's opening, the share price rose another 5% to hit the upper circuit limit of ₹212.1.

Considering that the minimum bid quantity to apply for the Solarium Green Energy IPO was 600 shares, successful bidders who were allotted shares of the company in the primary issue would have been sitting on listing gains of ₹6,600 per lot (₹11 x 600).

The ₹105.04-crore IPO of Solarium Green Energy was open for subscription from February 6 to February 10. The BSE SME IPO was oversubscribed 8.3 times during the three-day bidding window, with the company receiving bids for nearly 3.25 crore shares against 39.36 lakh shares on offer.

The public offer consisted only of a fresh issuance of 55 lakh shares worth ₹105.04 crore, with no offer-for-sale (OFS) component. The company had set a price band of ₹181 to ₹191 per share, and the lot size was 600 shares.

Beeline Capital Advisors was the issue’s lead book-running manager, while Link Intime India was its registrar.

Ahead of the IPO launch, Solarium Green Energy also raised ₹29.85 crore through an anchor investor round. The company's board of directors, at its meeting held on February 5, finalised the allocation of 15.63 lakh shares to 15 anchor investors at an allocation price of ₹191 per share.

In its red herring prospectus, Solarium Green Energy had proposed to utilise ₹71 crore of the IPO proceeds for funding its working capital requirements.

The company has proposed to use the remaining portion of the funds for general corporate purposes like entering into strategic alliances with other body corporates for expansion of business abroad or in India, servicing our repayment obligations and capital expenditure.

Incorporated in 2015, Solarium Green Energy offers turnkey solutions for solar power plants. It serves an array of projects, including commercial and industrial rooftop and ground-mounted projects, residential rooftop projects, and government projects. The company is also involved in selling solar products such as Solar photovoltaic (PV) modules, solar PV inverters, and availability-based tariff meters.

In the first half of fiscal 2024-25 ended September 2024, Solarium Green Energy reported a profit after tax of ₹7.55 crore. The company’s total income during the period stood at ₹82.34 crore.

The company’s net profit stood at ₹15.58 crore in the full financial year 2023-24 compared to ₹1.73 crore in FY 2022-23. Its total income was ₹177.80 crore in FY24 compared to ₹98.92 crore in FY23.