Saatvik Green Energy
- Saatvik Green Energy is coming out with a 100% book building; initial public offering (IPO) of 2,03,66,992 shares of Rs 2 each in a price band Rs 442-465 per equity share.
- Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
- The issue will open for subscription on September 19, 2025 and will close on September 23, 2025.
- The shares will be listed on BSE as well as NSE.
- The face value of the share is Rs 2 and is priced 221.00 times of its face value on the lower side and 232.50 times on the higher side.
- Book running lead managers to the issue are DAM Capital Advisors, Ambit and Motilal Oswal Investment Advisors.
- Compliance Officer for the issue is Bhagya Hasija.
Profile of the company
Saatvik Green Energy is among the leading module manufacturers in India in terms of operational solar photovoltaic (PV) module manufacturing capacity, with an operational capacity of about 3.80 gigawatt (GW) modules as of March 31, 2025. The company is one of the fastest growing module manufacturing companies in India and have established ourselves as a key player in India’s solar energy market. Since inception, it has supplied more than 2.50 GW high-efficiency solar PV modules domestically and internationally.
The company is recognized as one of the few companies with capabilities in module manufacturing as well as engineering, procurement and construction (EPC) and operations and maintenance (O&M) services. It offers EPC services in India and had an installed EPC base of 69.12 MW as of March 31, 2025. It also provides O&M services to customers primarily in relation to the EPC projects undertaken by it.
It offers a comprehensive portfolio of solar module products that are currently manufactured using technologies that help reduce energy loss and enhance overall efficiency. Its solar energy products include: (i) monocrystalline passive emitter and rear cell (Mono PERC) modules; and (ii) N-TopCon solar modules, both types are offered in mono-facial and bifacial options, suitable for various applications, including residential, commercial and utility scale solar projects. It manufactures its products through the use of M10 technology for its Mono PERC modules and M10, G12, M10R and G12R technologies for its N-TopCon modules.
Proceed is being used for:
- Prepayment or scheduled re-payment, in full or in part, of all or a portion of certain outstanding borrowings availed by the company
- Investment in its wholly owned Subsidiary, Saatvik Solar Industries Private Limited, in the form of debt or equity for repayment/prepayment of borrowings, in full or in part, of all or a portion of certain outstanding borrowings availed by such Subsidiary
- Investment in its wholly owned Subsidiary, Saatvik Solar Industries Private Limited, for setting up of a 4 GW solar PV module manufacturing facility at National Highway - 16, Chamakhandi, Gopalpur Industrial Park, Gopalpur, Ganjam, Odisha
- General corporate purposes
Industry Overview
Renewable energy installations (incl. large hydro) was approximately 220 GW as of March 2025 and have increased to approximately 233 GW as of June 2025 (Q1 FY 2026), as compared with approximately 63 GW as of March 2012, led by various central and state-level incentives. As of June 2025, installed RE capacity (incl. large hydro) in India constituted approximately 48% of the total installed generation base. The share of RE (including large hydro) in the total supply mix was approximately 12% in Fiscal 2015, which has now increased to 22% in Fiscal 2025 (as of March 2025) and approximately 23% in Q1 Fiscal 2026 (as of May 2025). The RE generation has increased at a CAGR of approximately 17% in the last 10 years. The combined share of solar and wind energy was approximately 11% of the total energy supplied during Fiscal 2024. The share of large hydro was approximately 8% and the remaining 2% from other RE sources. Going forward, in the next five years, the share of RE in terms of energy supply is expected to be about 35-40%. The share of solar energy supply is expected to be about 20-21% of the total RE supplied in Fiscal 2029.
India aims to build its presence across all stages of PV manufacturing over the next two to three years. In November 2020, the GoI introduced the PLI scheme for manufacturing high-efficiency solar PV modules with a financial outlay of Rs 45 billion. It later enhanced the outlay by Rs 195 billion under the Union Budget for Fiscal 2023. Solar PV manufacturing capacity is expected to reach 175 to 185 GW by Fiscal 2030, with full integration from polysilicon to modules expected to account for approximately 25% of capacities, largely driven by PLIs. Achieving this is expected to require an investment of Rs 1.20-1.30 trillion by Fiscal 2030. Module manufacturing capacity is expected to grow twice by Fiscal 2030 with approximately 25% of the capacity to be fully integrated and integrated units to come only post Fiscal 2025. Gujarat will be at the epicenter of additions with approximately 55 to 60% additions in the next 5 Fiscals.
Average module production is expected to increase to 64 to 69 GW between Fiscal 2026 and Fiscal 2029 owing to PLI capacities. Nearly Rs 97.3 billion worth solar cells and modules have been exported in Fiscal 2025. It is expected to remain flat on year. The average exports between Fiscals 2026 and 2029 are expected to be approximately 2.4 times than of Fiscal 2024. US likely to account for major share in the short term while emerging economies and African continent also expected to open. Imports are expected to account for 25% to 30% in Fiscal 2025 and fall to 5% to 10% by Fiscal 2029 owing to increase in domestic capacity of technologically progressive solar modules and upstream manufacturing. Demand from solar energy remains robust with 150-170 GW of addition expected between Fiscal 2026 to Fiscal 2030.
Pros and strengths
Quality customer base and large order book: The company’s position enables it to offer competitive pricing for its products, which in turn facilitates access to a large and diversified customer base and revenue generation from such customers. It possesses a diversified client base with presence in various segments (namely large utility, commercial and industrial open access, residential rooftop and solar pump) and across geographies (selling in all parts of India, North America, Africa and South Asia). It has over the years established relationships with a diversified set of customers globally and within India across a range of industries including manufacturing, automobile, cement, real estate, steel, energy, telecommunications and infrastructure.
Among the leading module manufacturing companies in India: The company is recognized as one of the few companies with capabilities in module manufacturing as well as EPC and O&M services. It had an installed EPC base of 69.12 MW as of March 31, 2025. Its in-house capabilities include manufacturing, private labelling, scale production, technical support and customer service and quality control. Its integrated approach allows it to deliver end-to-end solutions that meet the diverse needs of its customer base. By offering a seamless combination of products and services, it ensures that its customers receive consistent performance across every stage of their solar and EPC projects. This enhances customer satisfaction while strengthening its relationships, enabling it to serve a wide range of industries with energy solutions that drive long-term success.
Innovative technology solutions for the solar industry: The company’s strength lies in its flexibility in adoption of technology within the solar industry. It deploys a combination of advanced technologies, such as half-cut, MBB and circular-ribbon modules within N-TopCon technology. Additionally, for N-TopCon modules, it offers dual glass modules with customizable options ranging from 2.00 millimeters to 2.50 millimeters, ensuring high durability and efficiency. Its focus on design and technology enhancement is complemented by rigorous quality testing, allowing for customization that meets specific customer needs while maintaining a strong commitment to sustainability. This holistic approach ensures that it remain at the forefront of technological advancements in the solar industry.
Well-positioned to capture favourable industry tailwinds: Growth in the solar power sector over the last five years has been robust, with approximately 84 GW capacity having been added over Fiscals 2018 to 2025, registering a CAGR of around 26%. Despite such strong capacity addition, there is huge untapped potential for renewable energy installations in India, with solar energy having the highest potential of 750 GW, of which only 15.4% of the total potential has been tapped as of June 2025. With this increase in popularity of solar power, on the project development front, developers have exhibited heightened preference for bifacial modules that typically have higher efficiency as compared to mono-facial modules and are compatible with tracker technology.
Risks and concerns
Maximum revenue comes from limited customers: The company’s business is dependent on certain key customers, and its top 10 customers contributed 57.77%, 63.86% and 79.38% of its revenue from operations in Fiscals 2025, 2024 and 2023, respectively. The loss of revenue from any of these customers could have a material adverse effect on its business, financial condition, results of operations and cash flows.
Geographical constrain: The company currently operates three module manufacturing facilities in Ambala, Haryana. Given the geographic concentration of its manufacturing operations in one state, its operations are susceptible to disruptions which may be caused by certain local and regional factors, including but not limited to economic and weather conditions, natural disasters, demographic factors, and other unforeseen events and circumstances. While it has not faced any such instances of disruptions in the last three Fiscals, it cannot assure that such instances will not occur in the future. If any such disruptions occur, its operations may be affected leading to significant delays in the manufacturing and shipment of its products which could materially and adversely affect its business, financial condition and results of operations.
Significant working capital requirements: The company requires considerable working capital to finance the purchase of the raw materials and components required for its manufacturing processes, as well as for its day-to-day operations. It typically relies on internal accruals and borrowings availed from banks and financial institutions for its working capital arrangements. Its success depends on its ability to secure and successfully manage sufficient amounts of working capital. There may be circumstances in which there may not be sufficient funds to fulfil its commitments or meet its manufacturing requirements. A lack of working capital may also require it to incur additional indebtedness, utilize internal accruals or issue further equity to meet its capital expenditure requirements in the future.
Dependent on a limited number of vendors for the supply of raw materials: The company’s ability to remain competitive, maintain costs and profitability depend, in part, on its ability to source and maintain a stable and sufficient supply of materials and components at acceptable prices. The company has procured 34.28%, 38.85% and 55.49% of its raw material from its top 10 vendors in FY25, FY24 and FY23 respectively. The company does not have any formal long-term agreements with these suppliers and typically purchase materials and components on a purchase order basis and place such orders with them in advance on the basis of its anticipated requirements. As a result, the success of its business is significantly dependent on maintaining good relationships with its material and component suppliers.
Outlook
Saatvik Green Energy is the manufacturer of modules and offers engineering, procurement and construction (EPC). The company offers a comprehensive portfolio of solar module products that are currently manufactured using technologies that help reduce energy loss and enhance overall efficiency. The company has multiple sales and revenue channels. On the concern side, the company’s business is dependent on certain key customer and the loss of revenue from any of these customers could have a material adverse effect on its business, financial condition, results of operations and cash flows. Also, the business and prospects of the company is significantly dependent on the success of a limited number of products.
The issue has been offering 2,03,66,992 shares in a price band of Rs 442-465 per equity share. The aggregate size of the offer is around Rs 900.22 crore to Rs 947.07 crore based on lower and upper price band respectively. Minimum application is to be made for 32 shares and in multiples thereon, thereafter. On performance front, revenue from operations increased by 98.39% from Rs 10,879.65 million in Fiscal 2024 to Rs 21,583.94 million in Fiscal 2025. Moreover, the company recorded a restated profit for the year of Rs 2,139.30 million in Fiscal 2025 compared to Rs 1,004.72 million in Fiscal 2024.
The company’s initiative to achieve backward integration into cell manufacturing is a critical step in its long-term growth and sustainability objectives. It intends to establish a 4.80 GW cell line manufacturing capacity and 4.00 GW module manufacturing capacity across its proposed manufacturing facility in Odisha, which are expected to be operational in Fiscal 2027 and Fiscal 2026, respectively. Its focus on backward integration will enable it to consume a majority of the cell production in-house, ensuring a seamless supply of high-quality cells for its solar module manufacturing processes. It anticipates significant margin expansion, driven by the efficiencies and cost savings associated with controlling its supply chain from cell production through the final module assembly. This approach will not only enhance its profitability but also gives it greater flexibility and control over its production timelines and quality standards.
