Delhi, 20 November (H.S.): Shares of Fujiyama Power Systems, a manufacturer of on-grid, off-grid, and hybrid solar systems, made a disappointing stock market debut on Thursday, leaving its initial public offering (IPO) investors with losses. The company's shares were issued at ₹228, but listed at a nearly 4% discount at ₹218.40 on the BSE and ₹220 on the NSE.Despite the weak opening, the stock saw some recovery fueled by buying support.
As of 10:30 AM, Fujiyama Power shares were trading at ₹224.40 on the BSE and ₹224.89 on the NSE. However, this recovery was not enough to put early investors in the black, who remained at a notional loss of approximately 1.5%.
Subscription and Financials
The ₹828 crore IPO from Fujiyama Power Systems was open for subscription from November 13 to 17. It garnered a subdued response from investors, achieving an overall subscription of 2.21 times. The portion reserved for Qualified Institutional Buyers (QIBs) was subscribed 5.24 times, while the retail investor category saw 1.05 times subscription. The quota for Non-Institutional Investors (NIIs) was undersubscribed at 0.92 times, and the employee portion was subscribed 1.55 times.
The IPO consisted of a fresh issue of shares worth ₹600 crore and an offer for sale (OFS) of one crore shares. The company plans to use the proceeds from the fresh issue to upgrade its manufacturing facility in Ratlam, reduce existing debt, and for general corporate purposes.
According to its Draft Red Herring Prospectus (DRHP) filed with SEBI, the company has demonstrated robust financial health. Its net profit surged from ₹24.37 crore in FY23 to ₹156.34 crore in FY25. During the same period, its revenue grew at a compound annual growth rate (CAGR) of over 52% to reach ₹1,550.09 crore.
For the first quarter of the current fiscal year (April-June 2025), the company reported a net profit of ₹67.59 crore on revenue of ₹597.79 crore. As of the end of Q1, the company's debt stood at ₹432.83 crore, against reserves and surplus of ₹436.33 crore.
---------------
Hindusthan Samachar / Jun Sarkar
