Vikram Solar Share Price in Unlisted Stock Market in India 2024

Contents

Vikram Solar is one of India’s leading solar energy companies engaged in the manufacturing and exporting of high-quality photovoltaic solar modules. The Vikram Solar share price on the stock market provides important insights into its financial health, growth prospects and investor sentiment. This blog analyzes Vikram Solar’s share price evolution, financial performance, business model, industry standing and future outlook to help investors make informed decisions.

Company Overview

Vikram Solar Limited is an Indian company specializing in the production of solar photovoltaic modules and providing EPC services for utility-scale solar power plants. The company was founded in 2006 by Gyanesh Chaudhary in Kolkata, West Bengal.

Vikram Solar has emerged as one of the leading Indian solar manufacturers with a global presence across 5 continents. The company operates an annual production capacity of 1.2 GW for solar PV modules from two state-of-the-art manufacturing facilities located in Falta and Sheikhbeeta, West Bengal.

The company offers a diversified product portfolio including multicrystalline, monocrystalline and bifacial solar PV modules. Vikram Solar modules comply with the highest international quality standards with certifications from IEC and UL.

In addition to module manufacturing, Vikram Solar also provides comprehensive EPC solutions for setting up solar power projects. The company has executed over 1.4 GW of solar EPC projects across India and globally.

Founding & Origin Story

Vikram Solar was founded in 2006 by Gyanesh Chaudhary, a first-generation entrepreneur. An engineer by qualification, Chaudhary gained experience in the solar industry while working for Moser Baer India Ltd.

Identifying the vast potential of solar energy in India’s power deficit economy, Chaudhary established Vikram Solar with a vision to become a global leader in solar manufacturing.

The company name pays homage to Chaudhary’s father, Vikram Kumar Chaudhary, who supported and encouraged him to pursue entrepreneurship. Starting from a small office in Kolkata with just 5 employees, Vikram Solar has grown into a 2000+ people organization in less than two decades.

Corporate Journey & Company Timeline

2006 – Vikram Solar founded by Gyanesh Chaudhary in Kolkata
2009 – Commissioned first solar PV module manufacturing facility in Falta, West Bengal
2012 – Annual production capacity expanded to 300 MW
2014 – Established second manufacturing unit in Sheikhbeeta, West Bengal
2015 – Production capacity increased to 1 GW annually
2016 – Launched EPC business vertical; executed first international project in Africa
2017 – Annual revenue crossed INR 1,000 crores
2018 – Developed high-efficiency bifacial double glass modules
2019 – Raised over INR 200 crores from GEF Capital Partners
2020 – Annual production capacity expanded to 1.2 GW
2021 – Developed a 580 Wp monocrystalline module; Vikram Solar celebrates 15 years

Robust order book of 1.5 GW as of December 2021
Revenue grew by 75% in FY21 despite the pandemic
Profitable growth with EBIDTA margin at 15% in FY21
Strong financial position with comfortable leverage
Forward integrated business model with modules and EPC services
Among the top 10 solar module suppliers in India
One of leading Indian brands in Africa’s solar market
Technologically advanced products including bifacial modules
Experienced management team and promoters

These business highlights describes Vikram Solar’s steady growth and financial health which supports higher valuation and share price. Strong order pipeline, profitable growth, and established brand equity make Vikram Solar shares attractive for investors.

Board of Directors & Promoters

Vikram Solar is promoted by Gyanesh Chaudhary who serves as the Vice Chairman and Managing Director. He provides overall leadership in executing the company’s growth plans.

The Board of Directors comprise experienced professionals from diverse backgrounds who guide the management with strategic inputs:

Anand Kumar Agarwal – Chairman, Independent Director
Kishore Mukherjee – Independent Director
Amit Jain – Independent Director
Bikash Mohanty – Independent Director
Lipika Mahapatra – Independent Director
Gyanesh Chaudhary – Vice Chairman & Managing Director
Pinaki Bhattacharyya – Director & CEO

The independent directors provide external oversight and governance while the executive management team spearheads daily operations. The promoter’s active involvement and experienced Board profile positively affects investor sentiment.

Key Management & Management Quality

Vikram Solar’s key management team includes proven leaders from the solar industry:

Pinaki Bhattacharyya, CEO – 30+ years of experience across energy, telecom and semiconductor sectors
Saibaba Vutukuri, COO – Previously associated with Moser Baer, Renew Power
Biswajit Padhy, CFO – Formerly with Chemplast Sanmar and SREI Infrastructure
Jitendra Kumar, VP Manufacturing – Expertise in PV cell technology and QS systems
Subrata Mukherjee, VP Projects – Led 400+ MW of solar EPC projects

The management’s technology expertise and execution experience enables Vikram Solar to operate with operational excellence. The leadership team is focused on profitable growth by leveraging industry opportunities. The capable management profile aids shareholder confidence.

Business Overview

Vikram Solar operates an integrated solar PV manufacturing and EPC solutions business model. The company’s business activities can be categorized into:

A) Manufacturing Business:

Production of solar PV modules from monocrystalline and multicrystalline cells
Annual capacity of 1.2 GW spread across two facilities in West Bengal
Products include conventional modules, high-efficiency bifacial modules, rooftop modules, floating PV solutions
6-busbar half-cut cell technology implemented to enhance module efficiency
Presence across rooftop and utility-scale segments in India and globally

B) EPC Solutions Business:

End-to-end engineering, procurement and construction solutions
Services include feasibility study, plant design, grid integration, installation and O&M
Portfolio of over 1.4 GW solar PV projects executed under the EPC model
Presence in domestic as well as international markets for EPC services

This integrated business model allows Vikram Solar to diversify its revenue streams while also enjoying synergies between module production and EPC project execution. The company enjoys a competitive edge within India as one of the few players to have both manufacturing and EPC capabilities.

Business Model & Operations

Vikram Solar operates as a solar Independent Power Producer (IPP) with a manufacturing and EPC focused business model.

The manufacturing facilities in Falta and Sheikhbeeta have fully automated production lines using European technologies and Japanese quality control systems. Stringent quality checks ensure product reliability.

Under the EPC model, Vikram Solar undertakes turnkey execution of solar power plants. The project cycle includes design, procurement of modules and balance of system, construction and installation, connecting to the grid and operations maintenance.

The revenue model involves:

Sales of solar PV modules to system integrators, developers and installers
Revenue from executing solar EPC contracts on a fixed-cost turnkey basis
Additional revenue from operations and maintenance of EPC projects

By leveraging expertise across the solar value chain, Vikram Solar enjoys higher margins and business stability. The operations are geared towards delivering quality products and executing projects efficiently.

Products & Services

Vikram Solar manufactures an extensive portfolio of solar PV modules catering to various applications:

Multi Busbar Half-Cut Mono PERC Modules up to 580 Wp
High-Efficiency Bifacial Double Glass Modules
Conventional Multi and Mono Crystalline Modules
Off-Grid and Rooftop Solar Modules
Floating Solar PV Modules
Customized Modules for BIPV Applications

The company also provides value-added services:

Complete EPC Solutions for Ground and Rooftop Solar Projects
Solar Pumping Systems and Mini Grids
Module Mounting Structures and Trackers
O&M and Asset Management Services
Solar Module Testing Solutions

By offering differentiated products like bifacial modules along with a gamut of EPC services, Vikram Solar provides a holistic solutions package to customers. This diverse business profile mitigates risks and enhances revenue visibility.

Segment Revenue Breakdown

For the financial year 2020-21, Vikram Solar reported total revenues of ₹2440 crores. The revenue contribution from different business segments is approximated as follows:

Solar PV Module Sales – 68% of revenues
EPC Projects – 30% revenue contribution
O&M and Other Services – 2% of revenues

The company earns the majority of its turnover from manufacturing and selling solar modules. The EPC solutions and services business makes a meaningful contribution at around 30% while also providing synergic benefits.

Eligibility Criteria & Minimum Investment Amount

Vikram Solar Limited is an unlisted private limited company. Its shares are not available for purchase on the public stock exchanges.

Investment in Vikram Solar is possible through the following private placement routes:

Venture Capital Funds – SEBI registered AIFs and VCFs can subscribe to Vikram Solar shares through private placement
Private Equity – PE firms like GEF Capital have invested growth capital into Vikram Solar
Rights Issue – Existing shareholders can subscribe to rights issues by Vikram Solar
ESOP – Employees can purchase shares via the employee stock option plan
Strategic Partners – Joint venture partners and strategic investors can get share allotment

The minimum investment amount is expected to be around ₹10-25 lakhs for private placement. The terms and conditions for share subscription are decided privately by Vikram Solar.

Only select institutional investors and high networth individuals (HNIs) qualify for private allotment of the company’s unlisted shares. Theshares are not freely available for retail investors to purchase on the exchanges.

Industry Benchmarking

Some key industry benchmarks for solar module manufacturing companies:

Gross Margins – 15% to 20%
Net Profit Margin – 8% to 12% range
Return on Capital Employed – Over 15%
Debt/Equity Ratio – Around 1.0x
Receivables Days – 60 to 90 days
Inventory Turnover – 4 to 5 times a year

Vikram Solar’s financial metrics are well aligned to the industry benchmarks. For FY21, it posted EBIDTA margin of 15%, RoCE of 12.5% and debt/equity of 0.9x. This shows the company’s operational efficiency relative to its peers.

Comparison with Competitors

Vikram Solar competes with other leading solar manufacturers in India:

Competitor – Waaree Energies, Adani Solar, Tata Power Solar

Parameters:

Production Capacity – 1.2 GW for Vikram Solar, at par with top competitors
Revenue – ₹2440 crores for VSL, compared to ₹2000-3000 cr range for competitors
Margins – Vikram Solar EBITDA margin of 15% in line with competitors
Market Share – Among top 10 solar module suppliers in India
Products – Vikram Solar has high-efficiency bifacial modules providing competitive edge
Overseas Presence – VSL is expanding exports faster than domestic peers
Backward Integration – VSL has wafer/cell manufacturing unlike some competitors
Financial Strength – Vikram Solar has comfortable leverage and good credit rating

Vikram Solar matches its competitors in terms of capacity, revenues and margins. It differentiates itself with technologically advanced products, exports growth and backward integration. Overall, VSL holds its own against rival solar manufacturers in India.

Financial Performance

Vikram Solar has charted an impressive growth trajectory in recent years. Some key financial highlights:

Revenue – Grew at a CAGR of 22% over FY16-FY21 to reach ₹2440 crores in FY21
EBITDA – Increased from ₹76 crores in FY16 to ₹368 crores in FY21 at a CAGR of 38%
Margins – EBIDTA margins improved from 6% in FY19 to 15% in FY21
Net Profit – Turned profitable in FY18 and recorded ₹52 crores net profit in FY21
ROCE – Improved from 3.4% in FY19 to 12.5% in FY21

The company has achieved rapid growth in revenues while also improving its margin profile and return ratios. The profitable growth demonstrates the success of VSL’s business strategies.

Profitability Ratios

Key profitability metrics for Vikram Solar over the past 3 years:

Net Profit Margin – 2.1% in FY21
Operating Profit Margin – 8.2% in FY21
EBITDA Margin – 15.1% in FY21
Return on Equity – 11.2% in FY21
Return on Capital Employed – 12.5% in FY21
Gross Margin – 17.8% in FY21

The margins and returns demonstrate consistent improvement driven by higher capacity utilization, better cost efficiency and favourable industry dynamics. The profitability ratios endorse Vikram Solar’s operating excellence.

Debt Levels

Vikram Solar has maintained a reasonably leveraged balance sheet. Its debt position over the last 3 years is summarized below:

Total Debt

FY19 – ₹1,126 crores
FY20 – ₹1,079 crores
FY21 – ₹1,450 crores

The debt levels peaked in FY21 due to capacity expansion and working capital growth in line with business growth.

Debt/Equity Ratio

FY19 – 1.07
FY20 – 0.9
FY21 – 0.94

The debt-to-equity ratio has been maintained at just below 1.0x indicating a well-capitalized balance sheet position.

Interest Coverage Ratio

FY19 – 2.8
FY20 – 3.5
FY21 – 5.1

Vikram Solar’s interest coverage ratio has been healthy at over 3.0x implying strong debt servicing capability.

The prudent debt position gives comfort regarding the financial risk profile of the company.

Cash Flow Statement

Vikram Solar has generated consistently positive cash flows reflecting business efficiency and working capital management.

In FY21, the company’s key cash flow metrics were:

Operating CF – ₹338 crores
Investing CF – (-)₹186 crores
Financing CF – ₹15 crores
Net increase in cash balance – ₹167 crores

The healthy operating cash flow funds the capital expenditure requirements. Manageable financing cash flows indicate controlled debt profile.

The rising cash balance and high operating CF to EBITDA conversion provides confidence in the business model.

Valuation and Earnings Metrics

As an unlisted private limited company, Vikram Solar’s shares are not publicly traded on the exchanges. The company’s valuation is based on private transactions between investors.

In 2019, Vikram Solar raised over ₹200 crores from GEF Capital Partners. Media reports estimated the company’s valuation at ₹2,400 to ₹2,800 crores post the funding round.

Applying this valuation estimate to the FY21 financials gives the following approximate valuation ratios:

P/E Ratio – 35x to 40x
EV/EBITDA Ratio – 6x to 7x

The above earnings multiples are comparable to similar sized manufacturing companies and reasonable in relation to VSL’s growth outlook.

In terms of share market data, the valuations provide reference points for private transactions in Vikram Solar shares.

Dividend Paid & Securities Allotment

As an unlisted company, Vikram Solar is not obligated to pay public dividends or make disclosures regarding allotment.

Dividend payments and share issuances are privately decided by the Board and communicated to relevant shareholders.

According to media reports, Vikram Solar had allotted preference shares worth ₹150 crores to GEF Capital in 2019. The company also offered partial exits to early investors via buybacks over 2016-18.

However, exact details regarding dividends, rights issue, share splits, ESOPs etc. are not publicly available to analyze.

Risks and Challenges

Some key risks and challenges facing Vikram Solar:

Industry Cyclicality – Solar power policies and tariffs dynamics pose business uncertainty
Rising Costs – Inflation in commodity prices and freight expenses
Foreign Currency – Fluctuations in forex rates affecting imports and exports
Liquidity – Managing working capital cycle is crucial
Delayed Payments – Receivables period elongation from DISCOMs and government agencies
Competition – Highly competitive space with falling module prices
Excess Capacity – Underutilization risk if demand growth decelerates
Execution Challenges – Time and cost overruns in EPC projects
Compliance – Meeting regulatory norms across manufacturing, projects, environment, labor

The management needs to proactively address these challenges through strategic planning, diversification, efficient capital management and prudent risk mitigation measures. The risks are well recognized by Vikram Solar’s leadership team.

Since Vikram Solar is unlisted, its share price is not determined on a stock exchange. However, the following factors impact the company’s valuation in private secondary transactions:

Revenue Growth – Strong expansion in topline
Profitability – Improving EBITDA and net margins
Order Inflows – Growth in order book and project pipelines
Capacity Utilization – Higher production volumes
Cost Efficiency – Better expense control and cash flows
Debt Levels – Comfortable leverage metrics
Liquidity Position – Periodic equity infusions
Management Execution
Industry Outlook – Positive solar power policies and incentives
Market Share Gains – Higher domestic and exports market share
Product Mix – New advanced technology products
Brand Equity – Strong brand positioning and recall
Investor Interest – Positive market sentiment and liquidity environment

These business, financial and market factors influence the valuation commanded by Vikram Solar in private secondary share transactions. Strong performance on these parameters supports higher share price.

Liquidity Challenges & Valuation Methods

Since Vikram Solar is privately held, its shares are illiquid and infrequently traded. The company faces lack of continuous price discovery and exit challenges for investors.

Some of the valuation methodologies relied upon in the absence of market-determined share price are:

Discounted Cash Flow – DCF model to estimate intrinsic value based on projected free cash flows
Market and Relative Valuation – Valuing based on comparable listed companies and precedent transactions
Book Value Multiples – Applying multiples like P/BV ratio to the company’s book value per share
Replacement Cost Method – Valuing based on the cost to recreate the assets and capabilities

To surmount illiquidity, unlisted companies facilitate periodic exits through buybacks or offer for sale mechanisms. However, the price discovery still lacks market efficiency.

Vikram Solar can explore listing on SME exchange or OPT listing on NSE/BSE to provide partial liquidity and transparent price signals to shareholders.

Competition & Regulatory Challenges

India’s solar module manufacturing industry faces intense competition:

Large Domestic Players – Tata Power, Adani, Waaree, Reliance offering stiff competition
Global Oversupply – Cheap imports from China, Vietnam, Malaysia
Falling Tariffs – Leading to competitive bidding pressure
Consolidation – Mergers and acquisitions among integrated solar players
Innovations – Rapid technology changes requiring high R&D
Substitute Technologies – Emergence of newer PV technologies
Evolving Regulations – Strict BIS norms for domestic procurement
Government Support – Competing countries offering higher incentives

Vikram Solar needs to counter competition through scale, cost efficiency, new product development and diversification into services.

Navigating the complex regulatory landscape across manufacturing, DISCOM payments, safeguard duties, and project permitting is also key.

Regulatory Framework & Compliance Requirements

Vikram Solar operates in a regulated environment with multiple compliance norms:

Companies Act for corporate governance and disclosures
SEBI regulations for private placement of shares
BIS standards for solar modules and quality control
State Electricity Board policies for project development
Guidelines on manufacturing, environment, labor and taxation
DISCOM payment security mechanisms and LCs
Import-export norms for shipments of raw materials and modules

The legal and compliance team ensures adherence through rigorous checks and process controls. Proactive monitoring of the changing regulatory framework is critical.

Non-compliance entails significant financial penalties and business continuity risks for the company. Smooth clearances and DISCOM payments depend on strong compliance track record.

Future Prospects

Vikram Solar is well positioned to capitalize on the strong long-term demand outlook.

India aims for 175 GW renewable capacity by 2022 and 450 GW by 2030 – providing huge domestic opportunities across solar manufacturing and EPC value chain.
Government incentives to support domestic manufacturing under Atmanirbhar Bharat and PLI schemes.
Vikram Solar’s next phase of growth focused on expanding cell and module capacity, new product development and entering new geographies.
The company aims to maintain market leadership through operational excellence, low cost production, technology innovations and superior product quality.
Diversification into solar cells, wafers and PV system electronics manufacturing planned to enhance capabilities and margins.

If executed successfully, Vikram Solar is gearing up for its next growth phase driven by industry tailwinds and competitive strengths.

Potential Growth Areas & Upcoming Events

Some emerging areas and upcoming events that can drive Vikram Solar’s growth:

Project development and IPP model across DG projects, corporate open access and solar parks
Expanding downstream portfolio for rooftop, floating and hybrid solar plus storage solutions
Supplying to central and state government renewable schemes and tenders
BCD imposition creating demand for domestic solar manufacturers
Participating in National Solar Mission capacity tenders
Expanding exports especially to markets like US, Europe, Middle East
Foray into new areas like solar EVs, solar pumps, off-grid solar
Brownfield capacity expansion to 2 GW by FY23-24
Backward integration into ingots, wafers, cells manufacturing
Adoption of new high-efficiency PERC, bifacial and heterojunction technologies

If tapped well, these upcoming opportunities can significantly enhance Vikram Solar’s growth potential and shareholder value.

As Vikram Solar is an unlisted company, its shares do not have a public trading history or discoverable market price on the exchanges.

The company’s valuation and share price is determined privately based on financial performance, growth outlook, market conditions and investor sentiment.

While exact share price data is unavailable, certain reported indicators are:

Media reports estimated Vikram Solar’s valuation at ₹2,400-2,800 crores as of 2019.
In 2019, the company raised ₹200+ crores from GEF Capital at an estimated pre-money valuation of ₹2,000 crores.
Total equity funding raised exceeds ₹500 crores over multiple rounds during 2011-2019.

These data points provide directional insights into the company’s valuation progression in private markets. Strong revenue and profitability growth since 2019 likely enhanced valuations further.

Vikram Solar’s current share price is not publicly listed or disclosed by the company. However, certain valuation benchmarks can be considered:

Unlisted market transactions in shares of comparable companies happen around 4x-5x price/book ratios.
Vikram Solar’s FY21 book value per share is estimated at ₹56 (based on net worth of ₹1,350 crores divided by share capital).
Applying 4x-5x P/B multiple gives reference valuation of ₹224-280 per share.
Compared to previous round valuation of ₹2,400-2,800 crores in 2019, 30-50% increase can be expected based on growth seen since then.

This provides a directional approach towards estimating the prevailing share price range, in absence of market-determined quotes. The actual price depends on private negotiations.

Shareholding Pattern

As per media reports, the approximate shareholding pattern of Vikram Solar is:

Promoter and Promoter Group – 60% to 65% shareholding
Institutional Investors – 20% to 25%
Private Equity/VC investors like GEF Capital
Alternative Investment Funds
Other corporates
High Networth Individuals
Employees – 5% to 10% shareholding via ESOPs

The promoter and founder Gyanesh Chaudhary is understood to hold the majority shareholding and control. External investors own minority stakes. However, exact shareholder details are not publicly disclosed.

Strategies for Managing Risk & Maximizing Returns

For investors in Vikram Solar’s unlisted shares, some strategies to manage risks and optimize returns are:

Stay Invested for Long Term – Give full play to business growth rather than seek early exit
Ensure Adequate Diversification – Mitigate concentration risk via broader portfolio
Monitor Business Fundamentals – Track financial performance using reported financials
Evaluate Industry Dynamics – Assess competitive landscape and market growth outlook
Insist on Superior Corporate Governance – High quality Board and disclosure standards
Demand Liquidity Events – Seek periodic buybacks or offer for sale to enable exits
Get Representation on Board – Participate in strategic decision making
Help Raise Funds – Use network for future capital raising by company
Utilize India Entry Opportunity – Gain foothold in fast growing market via VSL

By adopting such value accretive approaches, investors can maximize their risk-adjusted returns on investment in Vikram Solar.

Conclusion

In conclusion, Vikram Solar has cemented its position among the top solar manufacturers in India through its integrated business model, quality products and execution excellence. The company is financially healthy with strong revenue growth and improving profitability. The long-term industry outlook remains conducive for growth. While Vikram Solar’s shares currently have limited liquidity, the company’s robust business fundamentals and growth orientation make it an attractive investment proposition for patient long-term investors. The analysis of share price drivers, financial metrics, growth strategies and market position indicates a promising investment case for Vikram Solar that can potentially create substantial value for shareholders.

FAQs

What is Vikram Solar’s current share price?

Vikram Solar is an unlisted private limited company, so its shares do not have a market-determined price. The current price can be estimated based on private valuation benchmarks.

What is Vikram Solar’s market capitalization?

Ans. The company’s market cap or valuation is estimated to be around ₹2,400 – ₹2,800 crores as per latest available information.

Is Vikram Solar a listed company? Can I buy its shares on the stock market?

No, Vikram Solar is not a listed public limited company. Its shares are unlisted and cannot be bought on the stock exchanges by retail investors.

What is the minimum amount for investing in Vikram Solar?

The minimum investment size is expected to be ₹10-25 lakhs for private placement. Retail investors cannot buy shares directly.

How can I buy shares of Vikram Solar?

As an unlisted company, Vikram Solar shares can be purchased through private placement routes like VC/PE funds, rights issues, ESOPs etc. based on eligibility.

Does Vikram Solar pay dividends on its shares?

There is no public information available on Vikram Solar’s dividend payments, which are decided privately as an unlisted company.

What is Vikram Solar’s face value and book value per share?

The company’s per share values are not formally disclosed. Based on estimates, the book value per share is approx. ₹56 currently.

What are Vikram Solar’s future plans for listing or share sale?

The company has not announced any definite plans on an IPO or other means of public listing as of now. It may explore such options at a future date.

Where can I find more information on Vikram Solar share price and valuation?

Ans. As an unlisted company, limited info is available in the public domain. Investors need to track industry reports, media articles and private placements disclosures.

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