Alpex Solar IPO - Review & Fundamental Analysis

Alpex Solar IPO

Alpex Solar consists of a fresh issue of shares worth INR 68,80,000 lakhs aggregating to INR 74.52 crores.. The company seeks funding for solar module facility expansion, aluminum frame unit, working capital, and corporate expenses.

Alpex Solar Limited IPO- Important Details

Alpex Solar IPO DateFebruary 8, 2024 to February 12, 2024
Alpex Solar IPO Listing DateFebruary 15, 2024
Alpex Solar IPO PriceINR 109-115 per share
Alpex Solar IPO Lot Size1200 Shares
Alpex Solar IPO Total Issue SizeINR 74.52 crores
Alpex Solar IPO Basis of AllotmentFebruary 13, 2024
Alpex Solar IPO Initiation of RefundsFebruary 14, 2024,
Alpex Solar IPO Credit of Shares to DematFebruary 14, 2024,
Alpex Solar IPO Issue TypeBook Built Issue
Alpex Solar IPO Listing AtNSE SME

Alpex Solar Limited IPO – Company Profile

Alpex Solar, a North Indian PV module manufacturer, offers monocrystalline and polycrystalline modules, including bifacial, mono-perc, and half-cut. Additionally, they provide comprehensive solar solutions, specializing in EPC for AC/DC Solar Pumps and surface and submersible installations.

Alpex Solar, a B2B panel manufacturer, supplies Luminous, Jakson, and Tata Power. Their panels reach EPC companies like Solarworld Energy, BVG India, Tata Power, Hild Energy, and Shakti Pumps. For B2C, they secure tenders and install solar water pumps, operating from Greater Noida with offices in various locations.

Their advanced manufacturing unit with 450MW capacity, expanding to 1GW, features world-class PV lines. With a skilled workforce of 196 and 15+ years in the industry, their plant is approved by Tata Power, Luminous, Jakson, NTPC, NHDC, HAREDA, CREDA, PEDA, RACP, and HP Saur Sinchai Yojana.

Alpex Solar IPO – Fundamental Analysis

Alpex Solar Ltd. has displayed consistent revenue growth, improving profits, and expanding assets from 2021 to 2023, suggesting a solid financial performance and making it an appealing option for potential investors.

Revenue Growth:

Alpex Solar Ltd. has shown a steady increase in revenue from ₹14,853.26 lakhs in 2021 to ₹19,468.01 lakhs in 2023. This consistent rise in revenue indicates a growing demand for its products or services and the company’s ability to capitalize on market opportunities.

Equity Growth:

The equity of Alpex Solar Ltd. has grown from ₹3,756.05 lakhs in 2021 to ₹4,154.75 lakhs in 2023. Although the growth is modest, it reflects a strengthening of the company’s financial foundation and an increase in shareholder value over time.

Expenses:

Expenses have risen in tandem with revenue, from ₹14,629.04 million in 2021 to ₹19,062.56 million in 2023. This parallel increase is indicative of the company’s expansion efforts, although it warrants a closer examination of expense management to ensure long-term sustainability.

Profit and Loss After Tax (P&L):

The company’s profit after tax shows variability, with a significant drop in 2022 to ₹20.07 lakhs, followed by a strong recovery to ₹378.62 lakhs in 2023. This recovery is a positive sign, suggesting effective cost management and operational efficiency improvements.

Return on Net Worth (RoNW):

RoNW has seen fluctuations, dropping to 0.52% in 2022 before rebounding to 9.55% in 2023. The recovery in RoNW is encouraging, indicating the company’s ability to generate profits from its equity base.

Diluted EPS (Earnings Per Share):

Diluted EPS reflects the profitability available to shareholders, growing from ₹1.76 in 2021 to ₹2.10 in 2023. This growth, despite the dip in 2022, is a positive indicator for investors, suggesting an upward trajectory in earnings.

Net Asset Value (NAV) per Equity Share:

The NAV per equity share has seen a decline from ₹69.13 in 2021 to ₹62.49 in 2023. This decrease needs to be analyzed in the context of the overall equity growth and market conditions.

Total Assets:

The company’s total assets have increased significantly from ₹9,935.35 lakhs in 2021 to ₹12,559.64 lakhs in 2023, indicating the company’s growth and expansion in operational capacity.

Total Liabilities:

Total liabilities have also grown from ₹6,179.3 lakhs in 2021 to ₹8,404.88 lakhs in 2023. This increase in liabilities should be considered alongside asset growth to assess financial leverage and risk.

Alpex Solar Ltd IPO Financial Information

ParticularAs at 31 March 2021As of 31 March 2022As of 31 March 2023
Revenue (₹ in lakhs)14,853.2616,556.1419,468.01
Equity (₹ in lakhs)3,756.053,776.124,154.75
Expenses (₹ in Million)14,629.0416,815.7219,062.56
Profit and Loss After Tax (₹ in lakhs)316.1620.07378.62
RoNW (%)8.390.529.55
Diluted EPS only (₹)1.760.112.10
NAV per Equity Share (₹)69.1362.8262.49
Total Assets (in lakhs)9,935.3510,003.7512,559.64
Total Liabilities (in lakhs) 6,179.36,227.678,404.88

Alpex Solar Ltd IPO Peer Comparison

Alpex Solar Ltd., with a total income of ₹19,592.07 lakhs and a RoNW of 9.55%, compares to Insolation Energy Ltd., which has a higher total income of ₹28,005.86 lakhs, a P/E ratio of 20.95, and a significantly higher RoNW of 28.48%.

CompanyTotal Income (₹ in lakhs)Face Value per Equity Share (₹)P/EEPS (₹)RoNW (%)NAV per Equity Share (Basic) (₹)
Alpex Solar Limited 19592.0710NA2.109.5569.13
Insolation Energy Limited 28005.861020.956.0128.4825.39

Alpex Solar IPO Objective

The main objective of Alpex Solar is to expand the solar module facility, set up a new aluminum frame unit, and meet the company’s working capital requirements.

  1. Funding capital expenditure for upgradation & expansion of their existing solar module manufacturing facility: The company allocates INR 1955.80 Lakhs of Net Proceeds for upgrading and expanding manufacturing facilities, targeting a 750 MW annual production capacity. 
  2. Setting Up Of A New Manufacturing Facility Of An Aluminum Frame Project: The company proposes to utilize part of IPO proceeds amounting to INR 1,294.65 Lakhs to set up this new manufacturing facility of aluminum frames, where their company will convert the Aluminum ingots into the Aluminum profiles for framing, which is being used in Module manufacturing. 
  3. Funding of Working Capital Requirements of the company: The company proposes to utilize INR 2,049.55 Lakhs from the Issue Proceeds to fund the working capital requirements of the company. They aim to align with the strategic decision to manage higher inventory for future sales.
  4. General Corporate Expenses: The company plans to deploy the balance funds towards the general corporate goals, including allocating funds for operating expenses, branding, promotion, advertisements, and difficulties.

Alpex Solar IPO Risks and Challenges

Alpex Solar’s risks include an ongoing tax evasion case (CRLR 132/2023), risks, business continuity, and financial stability. Growth relies on winning solar water pump bids, facing industry competition. Clientele shifts may impact revenue and profitability.

  • An ongoing legal case (CRLR 132/2023) alleges willful tax evasion by Alpex Exports Private Limited. The trial court discharged the accused, citing voluntary payment. The pending Delhi High Court verdict risks business continuity, revenue, and financial stability. 
  • Business growth depends on winning bids for solar water pumps EPC projects under government schemes. Success in a competitive solar industry requires strategic bidding, technical proficiency, and market awareness, with uncertain future outcomes still being determined.
  • Quality decline or shift in demand, especially from crucial client “Luminous,” may impact retention—no assurance of consistent business or revenue. As clientele evolves, the potential loss of critical clients could adversely affect revenues and profitability.

Alpex Solar Ltd IPO – Industry & Market Potential

The global solar power market, valued at US$197.23 billion in 2021, is projected to reach US$368.63 billion by 2030, with a 7.2% CAGR. This growth reflects a significant expansion in renewable energy adoption during the forecast period.

India’s ambitious goals include achieving net zero carbon emissions by 2070 and meeting 50% of electricity needs from renewables by 2030. With a rapidly growing sector, India aims to address its increasing energy demand through renewable sources.

India aims for <45% carbon intensity reduction by 2030, 50% renewables in electricity, and net-zero emissions by 2070. The green hydrogen market could reach $8B by 2030. KUSUM Scheme supports farmers with solar pumps, aligning with the commitment to 40% non-fossil-fuel power by 2030.

Alpex Solar Limited IPO – Type of Offer

Alpex Solar will have a fresh issue worth INR 64,80,000 lakhs, aggregating to INR 74.52 crores. The company seeks funding for solar module facility expansion, aluminum frame unit, working capital, and corporate expenses.

Alpex Solar IPO Offer Size

The offer size of Alpex Solar is INR 68,80,000 lakhs. The company seeks funding for solar module facility expansion, aluminum frame unit, working capital, and corporate expenses.

Alpex Solar Limited IPO Allotment Structure

Alpex Solar Limited’s IPO allotment structure includes a category for Retail Individual Investors (RII) with investments below ₹2 lakhs, a category for other investors exceeding ₹2 lakhs, and a reservation of 3,24,000 shares for Market Makers.

  •  Retail Individual Investors (RII): These individual investors apply for shares with a total value of less than Rs.2 lakhs.
  • Other than retail individual investors: Such applications where the value exceeds INR 2 lakhs.
  • Market Maker Reservation: A certain percentage or number of shares is reserved for market makers. The company has set aside 3,24,000 shares for this purpose.

How to apply for Alpex Solar Ltd IPO?

To apply for the Alpex Solar IPO through Alice Blue, you would typically follow these steps:

  1. Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.
  1. Check for IPO Details: Once your account is active, you can check for the Alpex Solar IPO details in the IPO section of the Alice Blue platform.
  1. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
  1. Submit the Application: Confirm all your details and submit your application.

 You can apply for Alpex Solar  IPO at Alice Blue in just a few clicks!

 Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

 Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How to Check Alpex Solar IPO Allotment Status on Alice Blue?

 Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

  1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
  2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
  3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
  4. Select the Alpex Solar IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Alpex Solar IPO.
  5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.

 Apart from Alice Blue, there are other ways to check the allotment status of the Alpex Solar IPO:

●   Registrar’s Website: Visit the website of Skyline Financial Services Private Limited, the registrar of the Alpex Solar IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.

●    NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) SME (Small Medium Enterprise) Platform. You would need your application number and PAN to check the status.

 Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.

Alpex Solar Limited IPO Offer Registrar

The registrar for the Alpex Solar Limited IPO is Skyline Financial Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

 Contact information for the registrar:

Skyline Financial Services Private Limited

D-153 A, 1st Floor,

Okhla Industrial Area, Phase – I,

New Delhi-110020

Tel No.: +91- 11-40450193-97;

E-mail: [email protected]

Website: http://www.skylinerta.com/

Alpex Solar IPO FAQs

1. What is the allotment date of the Alpex Solar IPO?

 The allotment date of the Alpex Solar IPO is February 13, 2024.

2. What is the price band of Alpex Solar IPO? 

The company Alpex Solar IPO is going to issue shares at INR 109-115 per share.

3. What is the size of the Alpex Solar IPO?

Alex Solar consists of a fresh issue of shares worth INR 68,80,000 lakhs. The company seeks funding for solar module facility expansion, aluminum frame unit, working capital, and corporate expenses.

4. What is the listing date of the Alpex Solar IPO?

The listing date of the Alpex Solar IPO is February 15, 2024.

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