The IPO, with a face value of Re 1, is a mix of fresh issue of shares up to Rs 700 crore and an offer-forsale of up to 20 million shares by Promoter Selling Shareholders.
FinTech BizNews Service
Mumbai, 31 December, 2024: Noida-based Rooftop Solar Company Fujiyama Power Systems Limited, a well-rounded leader in the Indian rooftop solar industry, manufacturing and supplying a comprehensive range of solar products including solar panels, inverters and batteries, has filed its Draft Red Herring Prospectus (DRHP) with capital markets regulator, Securities and Exchange Board of India (SEBI) to raise funds through Initial Public Offering (IPO). The IPO, with a face value of Re 1, is a mix of fresh issue of shares up to Rs 700 crore and an offer-forsale of up to 20 million shares by Promoter Selling Shareholders. It includes a reservation for a subscription by eligible employees and a discount is being offered to eligible employees bidding in the employee reservation portion. Offer for sale consists of shareholders selling shares up to 10 million by Pawan Kumar Garg, and up to 10 million shares by Yogesh Dua.
The company, in consultation with the BRLMS, may consider an issue of specific securities for an amount of up to Rs 140 crore as pre-IPO placement. If the pre-IPO placement is completed, the amount raised under the pre-IPO placement will be reduced from the fresh issue. The proceeds from the fresh issue to the extent of Rs 250 for financing the cost of establishing the manufacturing facility in Ratlam, Madhya Pradesh, India, Rs 300 crore for repayment of certain outstanding borrowings availed by the Company; and general corporate purposes. The Issue is being made through the book-building process, wherein not more than 50% of the Issue is allocated to qualified institutional buyers, and not less than 15% and 35% of the net offer is assigned to non-institutional and retail individual bidders respectively. Fujiyama Power Systems, founded in 1996 as UTL Electronics (India), initially operated as a proprietorship before transitioning into a partnership firm in 2008 under the leadership of Promoters Pawan Kumar Garg and Yogesh Dua. The Company was incorporated in 2017, and its business operations were transferred from the partnership firm in 2018. Over the years, Fujiyama Power Systems has established itself as a leader in the rooftop solar industry, offering comprehensive solutions including on-grid, off-grid, and hybrid solar systems. The Company was the first in India to develop an SMT-based inverter with a single card in 2000 and began manufacturing solar power conditioning units (PCUs) in 2012, followed by online solar PCUs in 2014. With a product portfolio spanning solar panels, inverters, lead-acid and lithium-ion batteries, and EV chargers, Fujiyama serves both domestic and international markets, including the USA, Bangladesh, and the UAE. Its brands ‘UTL Solar’ and ‘Fujiyama Solar’ are widely recognized, with a legacy of over 28 years in the industry. Fujiyama operates three manufacturing facilities located in Greater Noida, Uttar Pradesh; Parwanoo, Himachal Pradesh; and Bawal, Haryana. To meet growing demand, the Company is expanding with a new solar panel manufacturing facility in Dadri, Uttar Pradesh, and additional production lines in Greater Noida. Its in-house R&D capabilities drive constant innovation, leading to the development of over 500 SKUs. These include solar inverters, panels, batteries, hybrid solar systems, and more, ensuring that customers do not need to rely on other OEMs
The Company is primarily a B2C company and has built a robust distribution network across India, comprising more than 480 distributors, 3,600 dealers, and 1,000 exclusive UTL Solar “Shoppe” franchisees. Its team of over 400 qualified service engineers provides maintenance and technical support to customers nationwide. Additionally, Fujiyama has implemented AI-powered digital marketing strategies and a referral program that allows customers to earn UTL credits, redeemable for product upgrades or services. Fujiyama is recognized for its commitment to quality and performance, with certifications from MNRE, BIS, and SNAs, essential for participating in government tenders and availing subsidies. The Company’s innovations include rMPPT technology for maximizing energy output in variable conditions and hybrid solar systems that combine backup power with grid energy export. It has also introduced chargers for electric three-wheeler autorickshaws and continues to innovate in the EV segment.
Over the last three financial years and six months ending September 30, 2024, the Company sold more than 1.2 million solar panels, 630,000 solar inverters, and 850,000 batteries, contributing to over 1 GW of rooftop solar installations across India. Fujiyama’s achievements have earned it accolades such as "India's Largest Off-Grid Inverter Company" in 2019 and "Most Preferred Solar Energy Brand" in 2020, underscoring its reputation as a trusted name in the industry. The Company's revenue from operations increased by 39.24% from Rs664.08 crore in Fiscal 2023 to Rs924.69 crore in Fiscal 2024, primarily due to an increase in sale of its solar products and rendering of services. Profit after tax increased by 85.93% from Rs24.37 crore in Fiscal 2023 to Rs45.30 crore in Fiscal 2024. For the six months ended September 30, 2024, revenue from operations stood at Rs 721.73 crore, and profit after tax stood at Rs 75.09 crore. Motilal Oswal Investment Advisors Limited, and SBI Capital Markets Limited are the book-running lead managers and Link Intime India Private Limited is the registrar of the issue. The equity shares are proposed to be listed on the National Stock Exchange of India Limited and BSE Limited.
