Upcoming IPO: Fujiyama Power Systems, a Noida-based rooftop solar company, has filed its draft red herring prospectus (DRHP) with the capital market regulator Securities and Exchange Board of India (SEBI) for an initial public offering (IPO).
Fujiyama Power Systems IPO is a mix of fresh share sale of up to ₹700 crore and an offer for sale of up to 20 million shares of face value of Re 1 each. Promoters Pawan Kumar Garg and Yogesh Dua are offloading up to 10 million shares each via the OFS.
The company plans to use the fresh proceeds raise for various purposes — ₹250 for financing the cost of establishing the manufacturing facility in Ratlam, Madhya Pradesh; ₹300 crore for repayment of certain outstanding borrowings availed by the company; and remaining for general corporate purposes.
The company, however, informed that it may consider a pre-IPO placement of ₹140 crore. If the pre-IPO placement is completed, the fresh size of the IPO will be reduced.
In Fujiyama Power Systems IPO, 50% of the offer is reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs) and 35% for retail individual investors (RIIs). The IPO also includes a reservation for eligible employees.
About Fujiyama Power Systems
Fujiyama Power Systems, founded in 1996, is a manufacturer and solutions provider in the rooftop solar industry, including on-grid, off-grid, and hybrid solar systems.
According to the company’s DRHP, Fujiyama is the first Indian company to develop an SMT-based inverter with a single card in 2000. The company expanded its offerings by starting to manufacture solar power conditioning units (PCUs) in 2012, followed by online solar PCUs in 2014. Today, it boasts a diverse product portfolio that includes solar panels, inverters, lead-acid and lithium-ion batteries, as well as EV chargers. The company serves both domestic and international markets, with a presence in countries such as the USA, Bangladesh, and the UAE.
The company has three manufacturing facilities, with one each located in Uttar Pradesh, Himachal Pradesh and Haryana.
The company’s revenue rose by 39.24% from ₹664.08 crore in Fiscal 2023 to ₹924.69 crore in Fiscal 2024, primarily due to an increase in sale of its solar products and rendering of services. Profit after tax increased by 85.93% from ₹24.37 crore in Fiscal 2023 to ₹45.30 crore in Fiscal 2024.
Motilal Oswal Investment Advisors and SBI Capital Markets are the book-running lead managers for the issue while Link Intime India is the registrar. The company’s shares are slated to list on both the BSE and the NSE.
