EMMVEE PHOTOVOLTAIC POWER LIMITED IPO Explain

Emmvee Photovoltaic IPO Overview

India’s 2nd largest integrated solar manufacturer raising ₹2,900 cr (₹2,143.86 cr fresh + ₹756.14 cr OFS). Price: ₹206-217. Lot: 69 shares (₹14,973 min). Funds for debt repayment (₹1,621 cr), capacity expansion. Listing: BSE/NSE Nov 18. Lead: JM, IIFL, Jefferies, Kotak. Competes with Waaree, Vikram, Adani, Tata Power Solar.

IPO DETAILED INFORMATION

Issue Details

Parameter	Details
IPO Type	Mainboard
IPO Open Date	11 November 2025 (Tuesday)
IPO Close Date	13 November 2025 (Thursday)
Anchor Investor Bidding	10 November 2025 (Monday)
Allotment Date	14 November 2025 (Friday) – Expected
Credit to Demat	17 November 2025 (Monday) – Expected
Refund Initiation	17 November 2025 (Monday) – Expected
Listing Date	18 November 2025 (Tuesday) – Tentative
Price Band	₹206 – ₹217 per share
Face Value	₹2 per share
Lot Size	69 shares
Min Investment (Retail)	₹14,973 (1 lot of 69 shares at upper band)
Max Investment (Retail)	₹1,94,649 (13 lots of 897 shares)
sHNI Investment	₹2,09,622 (14 lots / 966 shares)
bHNI Investment	₹10,03,191 (67 lots / 4,623 shares)
Issue Size	₹2,900 crore total
Fresh Issue	₹2,143.86 crore (73.9%) – 9,88,03,667 shares
Offer for Sale (OFS)	₹756.14 crore (26.1%) – 3,48,36,885 shares by promoters
Total Shares Offered	13,36,40,552 equity shares
Listing	BSE & NSE (Mainboard)
Post-Issue Market Cap	₹15,023.89 crore (at upper price band ₹217)
P/E Ratio	40.7x (FY25 basis)
D/E Ratio	2.55x (high leverage)
ROE	104.6% (exceptional)
ROCE	23.3%

Issue Break-up

Category	Allocation
QIB (Qualified Institutional Buyers)	75% of Net Offer (unusually high)
NII (Non-Institutional Investors)	15% of Net Offer
Retail Individual Investors	10% of Net Offer (lower than typical 35%)

Note: Heavily skewed toward institutional investors with only 10% retail allocation.

Selling Shareholders (OFS ₹756.14 crore)

Promoters Selling 3,48,36,885 shares:

1. Manjunatha Donthi Venkatarathnaiah – Founder Promoter (partial exit)
2. Shubha Donthi – Promoter (partial exit)

Note: OFS represents 26.1% of total issue. Majority (73.9%) is fresh capital for company.

Objects of the Issue (Fund Utilization)

Fresh Issue Proceeds (₹2,143.86 crore) will be used for:

1. Prepayment/Repayment of Outstanding Loans – ₹1,621 crore (75.6% – largest allocation)
   • Repay company borrowings and subsidiary (Emmvee Solar Energy) debt
   • Reduce interest burden and deleveraging
   • D/E ratio of 2.55x indicates high leverage – debt reduction critical
2. General Corporate Purposes – Balance amount (24.4% or ₹523 crore)
   • Including unidentified inorganic acquisitions
   • Working capital requirements
   • Capacity expansion support
   • R&D and technology upgrades
   • International market expansion

Strategic Focus:

• Primary objective: Strengthen balance sheet through massive debt reduction (₹1,621 cr)
• Capacity expansion already funded: ₹3,306 crore term loans sanctioned for doubling capacity to 16.3 GW module, 8.94 GW cell by H1 FY28
• Unit VI (Sulibele): 2.5 GW addition targeting FY2026 commissioning
• ITIR Phase II (Bengaluru): 6 GW integrated cell & module complex
• Backward integration and technology leadership in TOPCon
• Export capability enhancement to US and global markets

OFS Proceeds (₹756.14 crore):

• Goes to promoters – partial exit/liquidity for founder and family

Note: Fresh issue dominated (73.9%) but entirely for debt repayment, not capacity expansion (already loan-funded).

Lead Managers & Registrar

Book Running Lead Managers (BRLMs):

• JM Financial Limited
• IIFL Capital Services Limited
• Jefferies India Private Limited
• Kotak Mahindra Capital Company Limited

Registrar:

• KFin Technologies Limited
• Phone: +91-40-6716 2222 / +91-40-7961 1000
• Website: https://ipostatus.kfintech.com/

Promoters & Management

Key Promoters:

1. Manjunatha Donthi Venkatarathnaiah (D.V. Manjunatha) – Founder Promoter (Partial OFS participant)
   • Founded company in March 2007
   • Visionary entrepreneur with decades in renewable energy
2. Shubha Donthi – Promoter (Partial OFS participant)

Company History:

• Founded: March 21, 2007 as Emmvee Photovoltaic Power Limited
• Legacy: Parent Emmvee Group established in 1992 – pioneer in solar water heating systems
• Evolution: Expanded from toughened glass and solar water heaters to integrated PV modules and cells
• Milestones:
  • 2007: 15 MW initial capacity
  • 2013: International sales office in Germany
  • 2015: 560 MW capacity, 40 MW solar project in Karnataka
  • 2022: R&D partnership with Fraunhofer ISE (Germany), US sales office
  • 2025: 7.80 GW module + 2.94 GW cell capacity; only Indian company passing all 7 Kiwa PVEL 2024 Reliability Scorecard tests

Company Contact:

• Registered Office: Solar Tower, 55, 6th Main, 11th Cross, Lakshmaiah Block, Ganganagar, Bengaluru – 560024, Karnataka
• Phone: +91-80-2563 2929
• Email: [email protected]
• Website: www.emmvee.com

COMPANY OVERVIEW

Establishment & Background:

• Incorporated on March 21, 2007 (18 years of solar PV manufacturing)
• Parent Emmvee Group founded in 1992 – legacy of 33+ years in renewable energy (started with solar water heaters)
• Industry: Solar Photovoltaic (PV) Modules & Cells Manufacturing
• Headquarters: Bengaluru, Karnataka
• Position: India’s 2nd largest pure-play integrated solar PV module and cell manufacturer by production capacity (as of March 31, 2025)

Business Model:

• Fully integrated solar PV manufacturer covering both cells and modules – rare capability in India
• Product Portfolio:
  • TOPCon modules and cells (bifacial and mono-facial formats) – higher efficiency 28-30% vs PERC 22-23%
  • Mono PERC modules (bifacial and mono-facial formats)
  • Next-generation architecture leadership in TOPCon technology
• Manufacturing Capacity (as of May 31, 2025):
  • Solar PV modules: 7.80 GW annually
  • Solar cells: 2.94 GW annually
• Four manufacturing units across 22.44 acres in two Karnataka locations:
  • Three units: Dobbaspet, Bengaluru (including India’s largest TOPCon solar cell facility by capacity)
  • One unit: Sulibele, Bengaluru
• Expansion Plan: Doubling capacity to 16.3 GW module + 8.94 GW cell by H1 FY28 (₹3,306 cr term loans sanctioned)

Market Position:

• India’s 2nd largest pure-play integrated solar PV module & cell manufacturer (March 31, 2025)
• 5.1% market share in ALMM (Approved List of Models and Manufacturers) enlisted module manufacturing capacity (May 2025)
• One of largest solar PV module manufacturers in India by production capacity
• TOPCon technology leader: India’s largest TOPCon solar cell facility (Dobbaspet)
• Quality leadership: Only Indian company passing all 7 Kiwa PVEL 2024 Reliability Scorecard tests
• Government compliance: Products on MNRE’s ALMM list – access to DCR (Domestic Content Requirement) market for CPSU, PM-KUSUM, PM Surya Ghar schemes

Operations:

• Customer Base: Independent Power Producers (IPPs), Commercial & Industrial (C&I) sector, EPC service providers (public & private)
  • Key clients: Ayana Renewable Power, CleanMax Enviro Energy, Hero Rooftop Energy, Prozeal Green Energy, KPI Green Energy, Aditya Birla Renewables
• International Presence: Exports to USA, Germany, Middle East, Africa
• Certifications: ISO 9001 (quality), ISO 14001 (environment), ISO 45001 (occupational health & safety), BIS, IEC 61215, IEC 61730
• Employees: Substantial workforce across manufacturing, R&D, sales
• R&D: Partnership with Fraunhofer ISE (Germany) for technology collaboration

Company Strengths

1. Integrated Manufacturing – Rare Cell + Module Capability:
   • Among few Indian companies with both 7.80 GW module + 2.94 GW cell capacity (as of May 2025)
   • Vertical integration provides cost control, supply chain security, and margin advantages
   • Reduces dependency on imported cells (India imports 50%+ solar cells from China)
   • Backward integration critical for DCR market access (government mandates domestic cells & modules)
   • Competitors like Waaree, Vikram Solar primarily module assemblers – Emmvee’s cell capacity differentiator
2. TOPCon Technology Leadership – Next-Gen Efficiency:
   • India’s largest TOPCon solar cell facility at Dobbaspet, Bengaluru
   • TOPCon (Tunnel Oxide Passivated Contact) delivers 28-30% efficiency vs PERC’s 22-23% limit
   • Early-mover advantage as industry transitions from PERC to TOPCon (global trend)
   • Higher efficiency modules command premium pricing and better project economics for customers
   • Only Indian company passing all 7 Kiwa PVEL 2024 Reliability Scorecard tests – world-class quality validation
3. Explosive Financial Performance – Revenue 2.5x, PAT 12.8x (FY24 to FY25):
   • Revenue: ₹954.44 cr (FY24) to ₹2,360.33 cr (FY25) – 147% growth
   • PAT: ₹28.90 cr (FY24) to ₹369.01 cr (FY25) – 1177% growth (nearly 13x!)
   • EBITDA margin: 30.9% (FY25) – exceptional for manufacturing
   • PAT margin: 15.8% (FY25) – among highest in solar sector
   • ROE: 104.6% – phenomenal return on equity
   • Demonstrates operating leverage, scalability, and strong demand capture
4. Substantial Order Book & Customer Relationships:
   • Robust order book providing revenue visibility (exact size not disclosed but substantial per management)
   • Valued relationships with leading IPPs, C&I players, EPC contractors
   • Diverse customer base reducing concentration risk
   • Recurring contracts from satisfied clients (quality & reliability track record)
5. Government Policy Tailwinds & Market Access:
   • ALMM listed: Products approved for government schemes (CPSU, PM-KUSUM, PM Surya Ghar, rooftop solar)
   • DCR market access: Domestic content requirement benefits integrated manufacturers like Emmvee
   • PLI (Production Linked Incentive) scheme: Supports domestic solar manufacturing
   • India’s solar capacity target: 500 GW by 2030 (from ~80 GW now) – massive demand growth
   • Government’s push for self-reliance (reducing China import dependency) favors domestic players
6. Aggressive Capacity Expansion – Doubling by H1 FY28:
   • Expansion plan: 7.80 GW module + 2.94 GW cell → 16.3 GW module + 8.94 GW cell by H1 FY28
   • ₹3,306 crore term loans sanctioned from leading financial institutions – financing secured
   • Unit VI (Sulibele): 2.5 GW addition targeting FY2026 commissioning
   • ITIR Phase II (Bengaluru): 6 GW integrated cell & module complex – landmark project
   • Positions Emmvee to capture India’s solar boom and meet growing demand
7. Experienced Promoter-Led Management:
   • Founder D.V. Manjunatha with decades of renewable energy experience since 1992 (Emmvee Group)
   • Successfully scaled business from solar water heaters to India’s 2nd largest integrated PV manufacturer
   • Navigated technology transitions (PERC → TOPCon)
   • Built international partnerships (Fraunhofer ISE, global sales offices)
   • Execution track record validated by 7.80 GW capacity build-out and quality certifications

Key Risks & Challenges

1. Extremely High Leverage – D/E 2.55x & ₹1,621 Cr Debt Repayment:
   • Debt-to-Equity ratio of 2.55x (vs peer average ~1.0-1.5x) – among highest in sector
   • ₹1,621 crore (75.6% of IPO) earmarked for debt repayment – indicates severe debt burden
   • ₹3,306 crore additional term loans sanctioned for capacity expansion – total debt load increasing
   • High interest costs impacting profitability and cash flows
   • Leverage increases financial risk – vulnerable during demand slowdowns or margin compression
   • Dependency on continuous debt refinancing and repayment ability
2. Intense Competition from Established & Emerging Giants:
   • Domestic competitors: Waaree Energies (#1, recently listed at ₹90K+ cr market cap), Premier Energies, Vikram Solar, Tata Power Solar, Adani Solar, Renewsys, Saatvik Green, Websol, Goldi Solar
   • Global giants: First Solar, Longi, Jinko Solar, Trina Solar, JA Solar (China dominance)
   • Capacity glut risk: India’s module capacity surged 21 GW (March 2022) → 82 GW (March 2025) – oversupply concerns
   • Price wars: Commoditization of solar modules pressuring margins
   • Low switching costs: Customers can easily shift suppliers based on price
   • Technology race: Continuous need for R&D investment to stay competitive (TOPCon → HJT → Perovskite-Silicon Tandems)
3. Raw Material Import Dependency & Forex/Supply Chain Risks:
   • Heavy reliance on imported silicon, raw modules, and machinery (primarily from China)
   • China dominates global solar supply chain (80%+ polysilicon, 70%+ cells)
   • Currency fluctuations (INR-USD, INR-CNY) affecting input costs
   • Geopolitical tensions: US-China trade wars, India-China border disputes disrupting supply
   • Price volatility: Silicon prices subject to boom-bust cycles
   • Supply chain disruptions (COVID-like scenarios) can halt production
4. Low Capacity Utilization – 53.9% in FY25:
   • Module utilization: ~53.9% (estimated) – significantly below peer leaders (Saatvik ~75%, Premier ~70%)
   • Reflects recent capacity expansion not yet fully utilized
   • Fixed cost absorption challenges with low utilization – margins pressured
   • Expansion to 16.3 GW by FY28 risks further underutilization if demand doesn’t materialize
   • Need to ramp up sales and market share aggressively to justify capacity investments
5. Government Policy & Subsidy Dependency:
   • Business tied to government incentives: PLI scheme, ALMM listings, DCR mandates, tax benefits
   • Policy changes risk: Removal/reduction of subsidies, tariff protections, or import duty concessions hurts demand
   • Regulatory uncertainties: Changes in renewable energy targets, grid integration norms, net metering policies
   • Election cycles: Government priorities shift affecting solar sector support
   • BCD (Basic Customs Duty) on imports: If reduced, cheaper Chinese imports flood market
6. Rich Valuation – P/E 40.7x Despite High Leverage:
   • P/E of 40.7x (FY25 basis) – premium vs some peers (but in line with sector given growth)
   • Valuation justified by exceptional growth (1177% PAT growth) but leaves little margin for error
   • P/B of 24.3x – investors paying 24x book value
   • High leverage (D/E 2.55x) + rich valuation = heightened risk if execution falters
   • Any growth disappointment, margin compression, or demand slowdown triggers sharp correction
7. Single-State Manufacturing Concentration – All Units in Karnataka:
   • ALL four manufacturing units in Karnataka (Dobbaspet + Sulibele)
   • Unit VI and ITIR Phase II expansions also in Karnataka – no geographic diversification
   • Regional disruptions (labor strikes, power outages, natural disasters, state policy changes) halt entire operations
   • Logistics costs higher for projects outside Karnataka
   • Competitor vulnerability if targeted by state-specific issues

Disclaimer: This information is based on publicly available sources including SEBI RHP filings and company disclosures. Investors should conduct their own research and consult with financial advisors before making investment decisions. Past performance is not indicative of future results. The company has high leverage (D/E 2.55x) with 75.6% of IPO proceeds for debt repayment, operates in intensely competitive solar sector with capacity glut risks, and faces low utilization (53.9%). Grey Market Premium of ₹20 (9.2% expected gain) indicates moderate market sentiment.