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BACKGROUND

Saatvik Green Energy Ltd, founded in 2015 and based in Ambala, Haryana, is a solar PV module manufacturer with a capacity of 3.8 GW as of June 2025. It produces advanced Mono PERC and N-Type TopCon modules, serving residential, commercial, and utility-scale projects. Alongside manufacturing, it offers EPC and long-term operations and maintenance services, making it a one-stop renewable energy solutions provider

Details of the Issue:

The public issue consists of an OFS aggregating up to Rs.200 Cr and a Fresh Issue up to Rs.700 Cr. The Company proposes to utilize the Net Proceeds towards:

1. Prepayment of certain outstanding borrowings: - Rs.10.8 Cr.

2. Investment in its wholly-owned subsidiary, Saatvik Solar India Pvt Ltd, in the form of debt or equity for repayment of borrowings – Rs.166.4 Cr

3. Investment in Saatvik Solar India Pvt Ltd for setting up a 4 GW solar PV module manufacturing facility in Odisha – Rs.477.2 Cr

Investment Rationale:

*  Wide Customer Base and Strong Order Book

*  Advanced Manufacturing Capacity and Certifications

*  Technology Focus and In-House R&D

*  Experienced Promoters

*  Integrated EPC and O&M Capabilities

*  Positioned to Benefit from Industry Growth

Valuation and Recommendation:-

In comparison with peers, Saatvik’s 3.8 GW capacity is smaller than Waaree Energies and Premier Energies but ahead of Alpex and Insolation. Its EBITDA margin of 14.8% is below the peer average of 17.8%, but the company stands out with a superior ROE of 63.4% and ROCE of 38.4%. Valuations also appear attractive, with EV/EBITDA at 20x and P/E at 27.6x compared to peer averages of 27.9x and 51.9x. Considering strong growth prospects, superior return ratios, and reasonable valuations, we assign a Subscribe rating to the IPO

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