Fujiyama Power Systems, a prominent Greater-Noida-based solar energy solutions provider, has filed its Draft Red Herring Prospectus (DRHP) with SEBI for an initial public offering (IPO). The IPO includes a fresh issue worth Rs 700 crore and an offer-for-sale (OFS) of up to 2 crore equity shares by its promoters. With proceeds earmarked for manufacturing expansion and debt repayment, Fujiyama Power Systems is poised to strengthen its position in India’s renewable energy landscape. The company’s legacy of innovation, robust sales, and ambitious growth plans underscore its appeal as a potential investment opportunity.

IPO Details and Structure

Fresh Issue and Offer-for-Sale:
The IPO comprises a fresh issue of equity shares worth Rs 700 crore and an offer-for-sale (OFS) of 2 crore shares. Promoters Pawan Kumar Garg and Yogesh Dua will offload one crore shares each through the OFS.

Pre-IPO Placement Option:
The company may raise Rs 140 crore through a pre-IPO placement, which, if executed, will reduce the size of the fresh issue proportionately.

Utilization of IPO Proceeds

Manufacturing Expansion in Madhya Pradesh:
A significant portion of the IPO proceeds will fund the establishment of a new solar manufacturing facility in Ratlam, Madhya Pradesh.

Debt Repayment:
The company plans to utilize a portion of the funds to repay outstanding debt, reducing financial leverage and enhancing profitability.

General Corporate Purposes:
The remaining proceeds will be allocated for corporate operations, ensuring liquidity and strategic flexibility.

Business Overview and Legacy

Solar Industry Leadership:
Fujiyama Power Systems specializes in manufacturing and providing solutions across the rooftop solar industry, including on-grid, off-grid, and hybrid solar systems. The company’s brands, UTL Solar and Fujiyama Solar, boast a legacy of over 28 years, solidifying its reputation in the renewable energy sector.

Robust Manufacturing and R&D Infrastructure:
The company operates three manufacturing facilities and maintains advanced R&D capabilities, ensuring a consistent focus on technological innovation and product excellence.

Impressive Sales and Operational Metrics

Sales Volume (Last 3 Years + Six Months):

Solar Panels: 12.25 lakh units (458.14 MW)
Solar Inverters: 6.31 lakh units (1,065.83 MW)
Batteries: 8.52 lakh units (1,672.17 MWh)
Financial Performance (H1 FY24):
For the six months ended September 2024, Fujiyama Power Systems reported:

Net Profit: Rs 75.1 crore
Revenue: Rs 721.7 crore

Expansion Plans

New Facility in Uttar Pradesh:
The company is developing a solar panel manufacturing facility in Dadri, Uttar Pradesh, to enhance production capacity.

Inverter Line Expansion in Greater Noida:
A new inverter manufacturing line is being installed at its Greater Noida facility, bolstering its ability to meet rising demand.

IPO Management and Listing Plans

Key Stakeholders:

Book-Running Lead Managers: Motilal Oswal Investment Advisors Ltd and SBI Capital Markets Ltd
Registrar of the Issue: Link Intime India Pvt Ltd
Proposed Listing:
The shares are proposed to be listed on the NSE and BSE, providing liquidity and visibility in the capital markets.