Solarworld Energy Solutions IPO Day 3: Subscription hits 4x, GMP at ₹66. Should you apply for listing gains or stay cautious? Expert analysis inside.
The Indian stock market has been buzzing with IPOs in 2025, and Solarworld Energy Solutions IPO is the latest name drawing retail frenzy. By the end of Day 2, the issue was already subscribed 4 times, with retail investors leading the charge. The grey market premium (GMP) is steady around ₹66, hinting at positive listing expectations. But here’s the real question: should you jump in on Day 3, the final chance to apply, or wait on the sidelines?
In this blog, we’ll break down the Solarworld Energy Solutions IPO — its strengths, risks, subscription trends, and expert opinions — so you can make an informed decision.
IPO Snapshot: Key Details at a Glance
Before we dive deeper, here’s a quick snapshot of the issue:
- IPO Opening Date: 23rd September 2025
- IPO Closing Date: 25th September 2025
- Price Band: ₹333–₹351 per equity share
- Total Issue Size: ₹490 crore
- Fresh Issue: ₹440 crore
- Offer for Sale (OFS): ₹50 crore
- Lot Size: To be confirmed (assume retail-friendly)
- Listing: BSE & NSE
- Grey Market Premium (GMP): ₹66 (approx.)
- Subscription Status (Day 2): Overall 4.0x, Retail 13.64x, NII 5.53x, QIB 0.02x
📊 What You Should Remember: The IPO has seen massive retail enthusiasm, but institutional investors (QIBs) have been slow to enter so far.
Solarworld Energy Solutions: Business Model & Growth Story
Solarworld isn’t just another EPC contractor; it’s positioning itself as a full-stack renewable energy platform. Its focus areas include:
- Engineering, Procurement, and Construction (EPC) for solar projects
- Solar module and cell manufacturing
- Battery Energy Storage Systems (BESS) – a critical growth sector in renewable energy
With India targeting 500 GW of renewable capacity by 2030, companies like Solarworld sit at the heart of this energy transition.
Order Book Strength
The company has a robust order book worth ₹2,527.81 crore, providing revenue visibility in the near term. This order book not only reflects strong demand but also the company’s ability to secure large projects in a competitive market.
📊 What You Should Remember: Solarworld is riding the solar and storage wave, and its order book signals strong momentum in the short term.
Solarworld IPO Subscription Trends: Retail vs Institutional
By the end of Day 2:
- Retail Investors oversubscribed the quota 13.64 times.
- Non-Institutional Investors (NII) subscribed 5.53 times.
- Qualified Institutional Buyers (QIBs) subscribed just 0.02 times.
This reflects a familiar pattern: retail enthusiasm kicks in first, while institutions usually come in strongly on the last day.
Why Retail Is Bullish
- Positive grey market buzz (+₹66 GMP).
- Relatively affordable pricing in the ₹333–₹351 band.
- Familiarity with the renewable energy theme.
📊 What You Should Remember: Retail investors are clearly excited, but keep an eye on Day 3 QIB demand — that’s what often drives long-term stability in the stock.
Grey Market Premium (GMP): What Does It Signal?
The GMP is hovering around ₹66, meaning investors expect the listing price to be around ₹417 (₹351 + ₹66). This indicates a potential 19% listing gain if sentiments remain stable.
However, GMP is a grey, unregulated indicator — it can shift quickly if secondary market sentiment changes. For example, a sudden correction in Nifty or global energy stocks could shrink or wipe out the premium.
📊 What You Should Remember: GMP is positive, but it’s not a guarantee. Treat it as market sentiment, not assurance.
Strengths of Solarworld Energy Solutions IPO
- Diverse Business Segments: From EPC to solar cells to storage, Solarworld covers multiple revenue streams.
- Strong Order Book: ₹2,527 crore ensures revenue visibility in the near future.
- Government Push for Renewables: India’s 2030 targets strongly align with Solarworld’s vision.
- Positive GMP & Subscription: Indicates strong listing momentum.
- Valuation Comfort (per analysts): At P/E 32.87x, it looks attractive compared to peers.
Risks & Red Flags to Watch
- Customer Concentration: Nearly 79% of FY25 revenue comes from a single client — a big dependency risk.
- Working Capital Strain: High receivables could pressure cash flow.
- Competitive Industry: EPC and solar module markets are crowded with big players.
- Valuation Debate: Some analysts (e.g., Anand Rathi) say the IPO is fully priced at a P/E of 39.6x.
- QIB Slow Response: Institutions haven’t shown big interest yet — a potential concern.
📊 What You Should Remember: Strong business model, but heavy client dependency and working capital issues are key risks.
Expert Reviews: Subscribe or Avoid?
Canara Bank Securities
- Call: Subscribe
- Reason: Attractive valuations, strong order book, long-term renewable play.
Anand Rathi
- Call: Neutral
- Reason: Fully priced at current valuations; operates in a fragmented market.
Market Buzz
- GMP suggests listing gains possible.
- Retail investors driving momentum, but institutions may decide final outcome.
📊 What You Should Remember: Analysts are divided — some recommend subscribing for long-term, while others urge caution due to stretched valuations.
Should You Apply on Day 3?
If you’re a listing gains seeker: The strong retail demand and positive GMP suggest short-term upside, but remember the risks of GMP volatility.
If you’re a long-term investor: Solarworld fits well with India’s renewable energy growth story, but weigh the risks of client concentration and high working capital.
🔑 Balanced View: Consider applying with limited exposure (not your entire IPO capital) — participate, but diversify.
🚨 Solarworld Energy Solutions IPO – Day 3 Update 🚨
- Subscription so far: 4x overall; Retail 13.6x; NII 5.5x; QIBs still cautious.
- Price Band: ₹333–₹351 per share.
- GMP: Around ₹66 → Possible ~19% listing gain if momentum holds.
- Strengths: ₹2,527 crore order book, entry into solar cells & storage, govt push for renewables.
- Risks: 79% revenue from one client, high working capital strain, competitive market.
- Expert View: Mixed. Some say Subscribe for long-term, others feel it’s fully priced.
👉 Takeaway: Great for short-term listing gains, but long-term investors should weigh client concentration and cash flow challenges before applying.
