#### Industry Overview
The global solar inverter market was valued at USD 7.7 billion in 2022 and is expected to reach USD 17.9 billion by 2030, growing at a CAGR of 8.8%. Solar inverters are crucial for converting direct current from solar panels into alternating current for household and industrial use. The India solar power market is projected to grow at a CAGR of 34.24% between 2022 and 2027, driven by increasing investments in renewable energy, favorable government regulations, and the adoption of microgrids.
#### Offer Details
The IPO consists of a fresh issue of 32,76,000 equity shares with no Offer for Sale (OFS). The issue is 100% book built and will be listed on the NSE Emerge platform. The price band for the IPO is set between ₹90 to ₹94 per equity share.
As this is the SME IPO investment during IPO would be 94*1200 = 112800.
#### Object of the Offer
The net proceeds from the IPO will be utilized for the following purposes:
1. Working capital requirements - ₹1245.00 Lakhs
2. Investment in subsidiary (Invergy India Private Limited) for plant and machinery and construction - ₹760.00 Lakhs
3. General corporate expenses (not exceeding 25% of the gross proceeds)
#### Share Holding Pattern
- **Promoters**: 61.36% post-issue (71,85,600 shares)
- **Promoter Group**: 0.87% post-issue (1,02,000 shares)
- **Public**: 37.77% post-issue (44,23,200 shares)
#### Basis of the Offer
The basis for the issue price is determined by the company's assessment of market demand through the book-building process. The face value of the equity shares is ₹10 each.
#### Income Statements Analysis and Key Financial Ratios
Revenue:
2021: ₹4652.91 Lakhs
2022: ₹8352.99 Lakhs
2023: ₹10447.63 Lakhs
Dec 2023: ₹7858.88 Lakhs (9 months)
Profit After Tax:
2021: ₹96.94 Lakhs
2022: ₹277.17 Lakhs
2023: ₹369.82 Lakhs
Dec 2023: ₹473.27 Lakhs (9 months)
EPS:
2021: ₹1.35 (Basic and Diluted)
2022: ₹3.85 (Basic and Diluted)
2023: ₹5.14 (Basic and Diluted)
Dec 2023: ₹6.57 (Basic and Diluted)
Net Worth:
2021: ₹177.81 Lakhs
2022: ₹454.98 Lakhs
2023: ₹824.81 Lakhs
Dec 2023: ₹1298.08 Lakhs
Borrowings:
Dec 2023: ₹2120.00 Lakhs
Debt to Equity Ratio:
Dec 2023: 1.63
Sales Growth
2021 to 2022: 79.61%
2022 to 2023: 25.09%
2023 (9 months): Not annualized, but shows significant growth
Listed Peer Group Companies
Waaree Energies is Largest and the best company among all listed companies.
#### Future Outlook
The company aims to leverage the growing demand for solar energy solutions in India and expand its market presence. The investment in plant and machinery and the enhancement of its product offerings under the "Invergy" brand are expected to drive future growth.
#### IPO Review
Given the company's strategic positioning in the rapidly growing solar energy market, established distribution partnerships, and a comprehensive product portfolio, the IPO presents an attractive investment opportunity. However, potential investors should carefully consider the general and specific risk factors associated with the company and the industry.
Can apply in IPO for Gain in Price, but better choice for long term investment is Waaree.
Alert: Document was prepared for Education Purposes only, do not treat as recommendation for buying or selling.
