Saatvik Green Energy IPO: Check IPO Date, Lot Size, Price & Details

Introduction:

The company 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. It is one of the fastest growing module manufacturing companies in India and has established itself as a key player in India’s solar energy market. 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. The company offer EPC services in India and had an installed EPC base of 69.12 MW as of March 31, 2025. It also provide O&M services to customers primarily in relation to the EPC projects undertaken by the company.

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 has supplied its solar modules for various solar installation projects, including floating solar PV modules. In its EPC vertical, it provides comprehensive solar solutions, managing projects from concept through to execution. Its offerings under this vertical include ground-mounted solar installations and rooftop solar installations. In addition, it also been awarded a battery energy storage system (“BESS”) installation project of 30 MW for Bihar State Power Generation Company Limited.

Over the years, it has developed a large and diverse customer base. It possess 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). Certain of its key customers include Solarcraft Power India 21 Private Limited, Enrich Energy Private Limited, Shree Cement Limited, Solarcraft Power India 9 Private Limited, Kiana Energy Solutions LLP, SJVN Green Energy Limited, Prozeal Green Energy Limited, Amplus KN One Power Private Limited, JSW Neo Energy Limited, Stockwell Solar Services Private Limited and Megha Engineering and Infrastructure Private Limited.

IPO Details:

Objectives of Issue:

• 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 the 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 the wholly owned Subsidiary, Saatvik Solar Industries Private Limited, for setting up of a 4 GW solar PV module manufacturing facility
• General corporate purposes.

Key Strengths:

• One of India’s leading module manufacturing companies offering integrated solutions- It is recognized as one of the few companies with capabilities in module manufacturing as well as EPC and O&M services. 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 our 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.
• Quality Customer Base and Large Order Book– Its 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 possess 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. By diversifying Its revenue streams across a broad customer base, we are better equipped to navigate market challenges and sustain consistent growth, reinforcing our position in the renewable energy sector

Risks:

• Dependency on Top 10 Customers – The company 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.
• Volatility in the Price of Raw Material- As part of its manufacturing process, it has purchased raw materials which include solar PV cells, backsheet, encapsulant and glass. In Fiscal 2025, the average price of raw materials such as Mono PERC solar cells was ₹ 30.92 per unit and TopCon solar cells was ₹ 33.66 per unit, respectively; and in Fiscals 2024 and 2023, the average price of Mono PERC solar cells was ₹ 55.04 per unit and ₹ 115.29 per unit, respectively. The price of solar PV cells is based on the price of wafers, the price of which can be volatile and unpredictable. Additionally, the prices of its raw materials fluctuate based on a number of factors outside its control, including general economic conditions, competition, commodity market fluctuations, the quality and availability of supply, currency fluctuations, consumer demand, manufacturing capacity, transportation costs, import duties and government policies and regulations. The failure to achieve corresponding sales price increases in a timely manner, sales price erosion without a corresponding reduction in raw material costs, a significant shortage of supply of solar PV cells and delays in their availability or failure to re-negotiate favourable raw material supply contracts are factors that may have a material adverse effect on its business, financial condition and results of operations.
• Concentrated Manufacturing Facility - As of the date of this Red Herring Prospectus, it currently operate three module manufacturing facilities in Ambala, Haryana, India. 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. If any such disruptions occur, its operations may be affected leading to significant delays in the manufacturing and shipment of our products which could materially and adversely affect our business, financial condition and results of operations.

Financial Snapshot:

KPI comparison with Industry Peers

Conclusion

The company operates in a highly promising growth sector that continues to receive strong government focus and support, making the growth outlook sustainable. From a peer comparison perspective, GK Energy’s revenue growth is broadly in line with industry averages. While its EBITDA and PAT margins are currently lower than peers, its asset turnover ratio, return on capital employed (ROCE), and return on equity (ROE) are significantly stronger, reflecting efficient capital utilization. The company’s debt-to-equity ratio is slightly higher than the industry average; however, this is mitigated by a healthy interest coverage ratio, which indicates sound debt servicing ability. On the valuation front, while the industry trades at an average P/E of around 52x, the company is available at a much more reasonable multiple of 24x. Considering the favorable industry dynamics, strong business prospects, and attractive valuation, we recommend subscribing to the issue with a long-term investment horizon.