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Salient features of the IPO:

* Saatvik Green Energy Ltd. (SGEL) is the solar photovoltaic (“PV”) module manufacturer, with 3.80 gigawatt (“GW”) operational capacity as of March 31, 2025. Having supplied over 2.50 GW of high-efficiency modules across domestic and international markets, it is recognized for its integrated module manufacturing, EPC, and O&M services. With a comprehensive product portfolio comprising Mono PERC and N-TopCon modules in monofacial and bifacial variants, SGEL caters to residential, commercial, and utility-scale projects.

* This issue is a combination of fresh issue (Rs. 700cr) and OFS (Rs. 200cr). The company will not receive any proceeds of the OFS. From the fresh issue net proceeds, the company will be utilizing Rs. 10.82cr for Prepayment of a portion of certain outstanding borrowings availed by the Company; Rs. 166.44cr for Investment in wholly owned Subsidiary, Saatvik Solar Industries Pvt. Ltd., in the form of debt/equity for repayment of borrowings of a portion of certain outstanding borrowings availed by such Subsidiary; and Rs. 477.23cr for Investment in its wholly owned Subsidiary, for setting up of a 4 GW solar PV module manufacturing facility at Odisha. Residual proceeds will be used for general corporate purposes.

Key competitive strengths:

* Quality customer base and large order book

* Among the India’s leading module manufacturers delivering integrated solutions for independent power producers

* Innovative technology solutions for the solar industry

* Multiple sales and revenue channels

* Well-positioned to capture favorable industry tailwinds

* Experienced promoters and management team

Business strategy:

* Backward integration into cell manufacturing

* Strengthen industry position with increased export sales, international EPC expansion, and wider customer base

* Advance technology capabilities to deliver high-quality, efficient modules

* Expand pan-India distribution network & create retail solar panels brand

Risk and concerns:

* Technology & manufacturing process risks

* Dependence on raw material & input price volatility

* Operational & adoption challenges in solar pump business under PMKUSUM scheme

* Regulatory & policy changes in renewable energy sector

* Competition

Valuation Overview and IPO Rating

SGEL is one of India’s leading solar PV module manufacturers with a capacity of 3.80 GW as of June 30, 2025. The company has built an integrated presence with module manufacturing, catering to utility-scale, commercial & industrial, and residential projects. With 3 advanced facilities in Ambala, operating at a high 83.7% utilization, a strong domestic order book of 4.01 GW, SGEL is strategically positioned to capture the opportunities in India’s fast-growing renewable energy sector. Looking ahead, India’s solar capacity is set to expand rapidly, supported by rising power demand (CAGR of 5–7% between FY26-30) and favorable government initiatives driving clean energy adoption. Alongside its robust module manufacturing base, SGEL is scaling up EPC services, exports through its U.S. subsidiary, and forward integration into cells, wafers, and ingots, reinforcing its competitive positioning. At the upper end of its price band, SGEL is valued at a P/E of 27.6x (FY25 EPS of Rs. 16.8), which stands at a discount to peers. With a diversified portfolio, expanding order book, proven execution track record, and alignment with India’s renewable energy priorities, SGEL offers significant long-term growth potential. Thus, we recommend a “SUBSCRIBE” rating.

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