Solarworld Energy Solutions
- Solarworld Energy Solutions is coming out with a 100% book building; initial public offering (IPO) of 1,47,14,714 shares of Rs 5 each in a price band Rs 333-351 per equity share.
- Not more than 75% 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 10% for the retail investors.
- The issue will open for subscription on September 23, 2025 and will close on September 25, 2025.
- The shares will be listed on BSE as well as NSE.
- The face value of the share is Rs 5 and is priced 66.60 times of its face value on the lower side and 70.20 times on the higher side.
- Book running lead managers to the issue are Nuvama Wealth Management and SBI Capital Markets.
- Compliance Officer for the issue is Varsha Bharti.
Profile of the company
Solarworld Energy Solutions is engaged in providing solar energy solutions, specialising in engineering, procurement and construction (EPC) services for solar power projects. It commenced its operations in 2013, offering comprehensive, end to end and cost-effective solutions for the installation of solar power projects tailored to its customers’ needs, which comprise public sector undertakings (PSUs) and commercial and industrial clients (C&I Clients). The company’s business operations are supported by its strong execution capabilities, which is demonstrated by the projects which have achieved their commercial operation date (Completed Projects) and its projects for which it has received orders or are currently under execution (Ongoing Projects). As on July 31, 2025, the company has Completed Projects with a total capacity of 253.67 megawatts (MW) AC/ 336.17 MW DC, and Ongoing Projects with a capacity of 765 MW AC / 994 MW DC for EPC and 325 MW/650 MWh for BESS.
The company’s solutions are designed to strengthen its customers’ sustainable energy infrastructure, supporting their decarbonization efforts and driving energy efficiency improvements. It offers these solutions through two distinct models namely the capital expenditure (CAPEX) model and the renewable energy service company (RESCO) model. Under the CAPEX model, it provides end-to-end solutions by designing, installing, setting up and commissioning the solar power projects on a turn-key basis for its customers, while the ownership of the solar power projects vests with the customer itself. The scope of its services ranges from the evaluation of land, designing of the project, procurement of raw material and components, installation of equipment, setup of the transmission infrastructure and the maintenance/operation of the project for the contracted period.
The company has a track record of delivering successful projects for both PSUs and C&I Clients. Its customer mix includes key customers such as SJVN Green Energy Limited, Haldiram Snacks Private Limited, Ethnic Food Manufacturing Private Limited and Samiksha Solarworld Private Limited. While the government projects are often awarded through a reverse bidding process, its Company has also cultivated a presence in the private sector solar power projects. For private sector solar power projects, it relies on its in-house marketing teams which actively engage with potential clients, tailoring its solar solutions to meet their specific energy requirements. Its proactive approach has enabled it to establish a strong connection with the clients thereby ensuring presence in the private sector.
Proceed is being used for:
- Investment in its subsidiary, Kartik Solarworld Private Limited (KSPL) for part-financing the establishment of a 1.2 GW solar PV TopCon Cell manufacturing facility in Pandhurana, Madhya Pradesh, India (the Pandhurana Project)
- General corporate purposes
Industry Overview
India witnessed robust growth in capacity addition over the past decade, led by delicensing of the power-generation business through the Electricity Act, 2003, followed by strong government thrust on RE through favourable policies and regulations. The total installed generation capacity as of July 2025 was 490 GW, of which 147 GW of capacity was added over fiscal 2018 to 2026 (July 2025). The overall installed generation capacity has grown at a CAGR of 5.04% over the same period. Coal and lignite-based installed power generation capacity has maintained its dominant position over the years and accounts for 46% as of July 2025. However, RE installations (including large hydroelectric projects), have reached 237 GW capacity as of July 2025, compared with 114 GW as of March 2018, constituting about 48% of total installed generation capacity. This growth has been led by solar power, which rapidly rose to 119 GW from 22 GW over the same period.
In the renewable energy basket (including large hydro) as of July 2024, solar energy accounted for a share of 50.2%. Growth in the solar power sector over the last six years has been robust. As much as 97 GW capacity has been added in the segment over fiscals 2018-26 (till July 2025), registering a CAGR of 26%, although on a low base. Despite the second wave of COVID19 pandemic, fiscal 2022 witnessed solar capacity additions of 14 GW. In a relief to developers, the MNRE provided total extension of seven-and-a-half months for the projects affected by the first and second waves of pandemic. In fiscal 2025, 24 GW solar capacity was added in India and in 4 months of fiscal 2026 (till July 2025) 13 GW has been added.
The GoI imposing solar Renewable Purchase Obligations (RPOs) across Indian states in 2011, coupled with the sharp drop in capital costs, led to most states releasing solar polices. This resulted in a spur in solar sector investments. Till fiscal 2012, only Gujarat and Rajasthan had state solar policies. After the success of Gujarat’s solar policy, other states such as Andhra Pradesh, Tamil Nadu, Karnataka, Madhya Pradesh, and Telangana introduced their respective solar polices. During fiscals 2018-2026 (as of July 2025), 97 GW of solar capacity has been commissioned. Despite the second pandemic wave, 14 GW of solar capacity was added in fiscal 2022. The momentum continued in fiscal 2023, 2024 and 2025, with robust solar capacity additions of 13 GW, 15 GW and 23.8 GW, respectively and 13 GW in 4M FY2026. India’s solar capacity commissioned till January 2024 was 74.31 GW which rose to 100.33 GW in January 2025 and 119.01 GW in July 2025. India is committed to become carbon neutral by 2070. By 2030, India aims to achieve a total of 500 GW of non-fossil fuel capacity addition, with 280 GW of it coming from solar energy.
Pros and strengths
Established track record and strong in-house execution capabilities: The success is driven by the company’s strong in-house execution capabilities and commitment to delivering end-to-end solutions. Its end-to-end EPC solutions includes site survey and design to installation and commissioning. It provides solar EPC solutions for PSUs ranging from 10 MW to several hundred MW and C&I Clients ranging from 1 kilo-watt (KW) to several hundred MW. Since the incorporation of the company, it has successfully developed, constructed, and operated a range of rooftop solar projects and ground-mounted solar projects under both CAPEX and RESCO models. As of July 31, 2025, it had 46 Completed Projects with a cumulative capacity of 253.67 MW AC / 336.17 MW DC, and six Ongoing Projects at various stages of completion with a capacity of 765 MW AC / 994 MW DC for EPC Projects and two ongoing BESS projects with a capacity of 325 MW / 650 MWh, which will be executed through its wholly owned subsidiary named Solarworld BESS One Private Limited.
Strong financial performance driven by asset light business model: The company operates on an asset-light business model in relation to its operations under the CAPEX model, where customers handle real estate acquisition. Its model minimizes capital expenditures and fixed costs, providing it with the flexibility and scalability to meet customer needs, offer customized solutions, and respond quickly to changing market conditions. Its EPC contracts are typically shorter in duration ranging from 11 to 18 months, allow it to maintain low working capital requirements. Its asset-light model results in a high asset turnover ratio, as it maximizes revenue generation relative to its lower asset base, ensuring efficient resource utilization.
Strong customer relationships built on reliable delivery of projects: The company offers a comprehensive range of customized solutions for solar power projects, serving corporations such as Haldiram Snacks Private Limited, Ethnic Food Manufacturing, Moon Beverages Private Limited, Harrshiv Healthy Foods and SJVN Green Energy Limited. Its consultative approach allows it to tailor solutions precisely to its customers’ needs, optimizing their solar energy systems for efficiency and cost-effectiveness. Its commitment to high-quality and customer satisfaction is reflected in its track record of repeat orders, with its repeat customers constituting 793 MW / DC of its total solar capacity orders procured of 1,330 MW / DC (excluding BESS orders), as of July 31, 2025.
Robust order book: As on July 31, 2025, the company’s Order Book was Rs 11,981.75 million for EPC projects and Rs 579.39 million for O&M projects with a cumulative capacity of 985 MW (DC) and 1291 MW (DC), respectively. Additionally, from April 1, 2024 till the date, the company procured an order from Rajasthan Rajya Vidyut Utpadan Nigam Limited for setting up of a 125MW /250 MWh standalone battery energy system having value of Rs 4,653.00 million and an order from Gujarat Urja Vikas Nigam Limited for setting up of a 200MW /400 MWh standalone battery energy system having value of Rs 8,064.00 million. Its Order Book has grown from Rs 5,350.06 million as on March 31, 2023 to Rs 25,278.14 million as on July 31, 2025. Its growth in its Order Book provides it with a clear visibility on its future cash flows.
Risks and concerns
Maximum revenue comes from SJVN Green Energy: For Fiscals 2025, 2024, and 2023, it derived 79.19%, 91.16%, and 87.98% of its revenue, respectively, from one of its key customers, SJVN Green Energy. Since the company is dependent on key customers for a significant portion of its revenue from its operations in a particular reporting period, the loss of any of such customer or a reduction in demand from such customers, for any reason, including due to loss of contracts, delay in fulfilling existing orders, failure to negotiate acceptable terms in negotiations, disputes or a loss of market share or a downturn in such customers’ business, if not suitably replaced with another customer, could adversely affect its business, future prospects financial condition and results of operations in that period.
Geographical constrain: As of July 31, 2025, 42 out of its 46 Completed Projects were located in states such as Uttar Pradesh, Telangana, Maharashtra, Rajasthan, Haryana and Delhi. Further, in Fiscal 2024 and 2023, the company had received 99.41%, and 99.35% of its total income from its EPC and O&M services in the state of Uttar Pradesh. Accordingly, it has geographic concentration in the state of Uttar Pradesh. Therefore, it is dependent on the general economic conditions and activities in this state. Any change in the economic conditions in Uttar Pradesh could adversely impact its business and financial performance.
Some of its subsidiaries don’t have operating history: Some of the company’s subsidiaries, such as ZNSHINE Solarworld, Kartik Solarworld and Solarworld BESS One, have no operating history since each of these subsidiaries were incorporated recently. Further, the Net Proceeds and the Pre-IPO Proceeds are proposed to be utilised for investment in one such Subsidiary, Kartik Solarworld, for part-financing the establishment of a 1.2 GW solar PV TopCon Cell manufacturing facility in Pandhurana, Madhya Pradesh. In the event its Subsidiaries continue to remain non - operational or incur losses, it may need to provide financial support to such entities and its consolidated results of operations and financial condition will be adversely affected. Additionally, it may not be able to recover its investment in such entities.
Dependent on few suppliers for raw material supply: The company is dependent on limited suppliers for procurement of raw material. The company has procured 73.34%, 66.58% and 70.75% of its raw material from top 5 suppliers in FY25, FY24 and FY23 respectively. The absence of long-term contracts at fixed prices and the need to maintain a continued supply of raw materials may make it difficult to resist price increases imposed by its suppliers. Its reliance on third-party suppliers without long-term contracts or exclusive arrangements exposes it to supply chain risks. Potential disruptions, such as supplier insolvency, natural disasters, or increased material costs, could impact its production, leading to delays, increased costs, or product shortages.
Outlook
Solarworld Energy Solutions is a solar energy solutions provider specializing in EPC services for solar power projects. The company has established track record and strong in-house execution capabilities for end-to-end solar EPC solutions. On the concern side, majority of revenue comes from one of its key customers, SJVN Green Energy. The loss of such key customer may materially and adversely affect its business, future prospects, and financial performance. Moreover, the company’s operations are concentrated predominantly in the state of Uttar Pradesh in Fiscals 2024 and 2023, and any change in the economic conditions could adversely impact its business and financial performance.
The issue has been offering 1,47,14,714 shares in a price band of Rs 333-351 per equity share. The aggregate size of the offer is around Rs 490.00 crore to Rs 516.49 crore based on lower and upper price band respectively. Minimum application is to be made for 42 shares and in multiples thereon, thereafter. On performance front, the company’s revenue from operations from sale of engineering, procurement and construction project decreased by 3.65% from Rs 4,960.18 million in Fiscal 2024 to Rs 4,779.33 million in Fiscal 2025. Moreover, the company’s profit for the year increased by 49.05% from Rs 516.91 million in Fiscal 2024 to Rs 770.48 million in Fiscal 2025.
Solar sector growth in India is primarily spurred by robust government backing, demonstrated through an aggressive tendering strategy. Complementary central and state government policies coupled with the increasing price competitiveness of solar power has led to a surge in solar installations. In order to capitalize on this expected growth in demand for solar EPC solutions, it has recently established a modern manufacturing facility at Haridwar, Uttarakhand for manufacturing tunnel oxide passivated contact (TopCon) solar modules with an annual capacity of 1.2 GW, by entering into Equity Co-operation Agreement with ZNSHINE PV-Tech Co. Limited, a Bloomberg NEF tier-1 supplier. Further, it intends to set up a battery energy storage system (BESS) production line of a capacity of 2 GW in Haridwar, Uttarakhand. Both the manufacturing facilities are funded through debt and internal accruals. The company has acquired land and building for the proposed facility in Roorkie, Haridwar, Uttarakhand. Further, it has completed the design, testing of equipment and civil work of this facility and are in the process of procuring the required equipment for the BESS manufacturing facility.
