Saatvik Green Energy IPO: A Quick Look at Day 1

New Delhi, September 19, 2025: Saatvik Green Energy Limited was met with a subdued response from investors on its first day of subscription. The IPO, which opened on Friday, September 19, 2025, and is scheduled to close on September 23, 2025, aims to raise ₹900 crore. This consists of a fresh issue of shares worth ₹700 crore and an offer for sale (OFS) of ₹200 crore by the promoters.

The price band for the public issue has been fixed at ₹442 to ₹465 per equity share. It has been reported that the grey market premium (GMP) for the IPO has been fluctuating, with a premium of ₹78 seen before the opening and a drop to ₹65 on the day of the subscription. This indicates an estimated listing price of ₹530 per share, which represents a potential listing gain of around 14% at the upper end of the price band.

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A significant portion of the IPO proceeds, approximately ₹477.23 crore, is earmarked for investment in a wholly-owned subsidiary, Saatvik Solar Industries Private Limited, for the establishment of a new 4 GW solar PV module manufacturing facility in Odisha. Additionally, funds will be utilized for the repayment of outstanding borrowings at both the parent and subsidiary levels.

The company’s financial performance has been highlighted as a key strength, with a significant increase in revenue and profit after tax (PAT) over the past two years. In the fiscal year 2025, revenue was reported to have doubled to ₹2,158.39 crore, while PAT surged by 113% to ₹213.93 crore. The company’s operational capacity has also been expanded to 3.8 GW as of June 30, 2025.

Despite the strong financial performance, several risks have been identified. The business is heavily dependent on government policies and incentives that promote solar energy adoption. This creates a vulnerability to changes in subsidies, tariffs, or duties. Furthermore, the company’s reliance on a few key clients is a concern, with its top 10 customers accounting for nearly 58% of the total revenue in FY25. The capital-intensive nature of the manufacturing business and the potential for input-cost volatility are also considered risks.

For investors, the IPO is being viewed as a long-term play on the Indian solar energy sector, which is being driven by favorable government policies and growing demand for clean energy. While some analysts have given a “subscribe” rating to the issue, it has been noted that the valuation appears to be fully priced compared to some of its peers.