This SME solar player targets to raise up to Rs 35 crore through IPO; Will it become the next Oriana Power, Alpex Solar?

An SME renewable energy player GP Eco Solutions India (GPES) is aiming to launch its initial public offering (IPO) in the near term, to raise Rs 30-35 crore. The company is proposed to be listed on the NSE Emerge platform. Of late, renewable players have received a robust response from the primary market. Alpex Solar, which was listed on bourses in February 2024, traded nearly 490% higher at Rs 638.35 against the issue price of Rs 115. Likewise, Oriana Power, which made its debut on D-Street in August 2023, advanced 1,942% to Rs 2,410.20 against the issue price of Rs 118.

Deepak Pandey, Promoter & Managing Director, GPES believes the renewable sector will continue to see robust growth for at least the next 10 years. Commenting on the forthcoming IPO, he said, “GP Eco Solar intends to raise capital between Rs 30 crore and Rs 35 crore, subject to approval. The IPO funds will fuel our growth, with Rs 12.45 crore allocated for working capital and expansion, and Rs 7.6 crore will be invested in our subsidiary Invergy India for a new solar inverter assembly facility in Noida. Remaining funds will go towards general corporate purposes.”

GPES reported revenue of Rs 78.40 crore and profit after tax (PAT) of Rs 4.73 crore for the nine months ended December 31, 2023. The company posted revenue and PAT of Rs 101.21 crore and Rs 3.70 crore, respectively, in financial year 2022-23 (FY23). GPES derives a significant portion of its revenues from Uttar Pradesh distantly followed by Haryana, Maharashtra, and Tamil Nadu.

“The Indian solar energy landscape is on the cusp of exponential growth, and GPES is strategically positioned to capitalise on this exciting opportunity,” said Pandey. “By going public, we gain access to the resources necessary to drive innovation and make a significant contribution to India’s sustainable future. The proceeds will allow us to expand our manufacturing capabilities, strengthen our service offerings, and solidify our position as a key player in India’s clean energy transition. We are steadfastly committed to making solar energy accessible and affordable to all.”

The global solar inverter market, valued at $7.7 billion in 2022, is projected to reach $17.9 billion by 2030, reflecting a promising compound annual growth rate (CAGR) of 8.8%. India’s solar power industry is anticipated to witness even more remarkable growth, with a CAGR of 34.24% estimated between 2022 and 2027.

“This IPO presents an attractive opportunity for investors to partake in the growth trajectory of a company well-positioned to thrive in the burgeoning Indian clean energy market,” said Astik Mani Tripathi, Promoter & Director of GPES.

The IPO will comprise a fresh issuance of 32.76 lakh equity shares with a face value of Rs 10 each. Corporate Capital Ventures Private Limited is the book-running lead manager for the issue while Bigshare Services is the registrar.