IPO Note : Emmvee Photovoltaic Power Ltd by Choice Broking Ltd
Salient features of the IPO:
* Emmvee Photovoltaic Power Ltd. (EPPL) is primarily a solar module manufacturer and are the second largest pure-play integrated solar photovoltaic (“PV”) module and solar cell manufacturing company and one of the largest solar PV module manufacturers in India, each in terms of production capacity as of March 31, 2025.
* As of June 30, 2025, it has a solar PV module production capacity of 7.80 GW and a solar cell production capacity of 2.94 GW, with a track record of over 18 years. It is one of the first companies in India to adopt higher efficiency tunnel oxide passivated contact (“TOPCon”) technology to manufacture solar cells.
* This issue is a combination of fresh issue (Rs. 2,143.86cr) and OFS (Rs. 756.14cr). The company will not receive any proceeds of the OFS. From the fresh issue net proceeds, the company will be utilizing Rs. 1,607.90cr for repayment of all or certain outstanding borrowings and accrued interest thereon availed by the company and its material subsidiary. Residual proceeds will be used for general corporate purposes.
Key competitive strengths:
* Second largest pure-play integrated solar PV module and cell manufacturers in India
* One of the largest solar PV module manufacturers in India with a track record of delivering quality products
* Early mover advantage in leveraging high-efficiency TOPCon cell technology
* Advanced manufacturing units driving efficient and sustainable operations
* Valued relationships with a diverse customer base backed by a substantial order book
* Experienced Promoter-led senior management team
Business strategy:
* Continued expansion of solar cell and module manufacturing capacity
* Strategic focus on further backward integration and diversification of supplier base
Risk and concerns:
* High revenue concentration (~75%) risk from top 5 customers
* Volatility in raw material prices and supplier dependence
* Exposure to government policies, import duties and restrictions
* Technological obsolescence and rapid industry evolution
* Competition
Valuation Overview and IPO Rating
EPPL is one of India’s leading solar PV module manufacturers with a growing integrated footprint across the solar value chain. The company focuses on expanding scale, backward integration, and technological advancement to enhance cost efficiency. It is targeting 16.30GW module and 8.94GW cell capacity by H1FY28. A recent 750MW order from NTPC Green Energy reinforces its strong execution and industry credibility. India’s solar sector is expanding rapidly, supported by strong policy push, import substitution measures, and the national ambition of achieving 500GW of renewable capacity by 2030. With rising demand across utility, commercial, and rooftop segments and industry capacity projected to grow at 25-30% CAGR, EPPL, with its 5.1% market share, is strategically positioned to capitalize on this accelerating growth. At the upper end of its price band, EPPL is valued at a P/E of 28.4x (TTM EPS of Rs. 7.6), which stands at a discount to peers. With its integrated operations, strong capacity expansion, order visibility and strategic growth roadmap, the company is well placed to benefit from India’s renewable energy transition. Thus, we recommend a “SUBSCRIBE” rating
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SEBI Registration no.: INZ 000160131
