Vikram Solar IPO gave 2% return for retail investors, but how did Arvind Kothari make 200% more money? – News Air Insight

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Vikram Solar’s stock market debut may have looked modest on paper, but for Arvind Kothari’s Niveshaay, the journey from conviction to validation has delivered robust returns. At listing, Vikram Solar commanded a market cap of nearly Rs 13,500 crore – more than three times the Rs 3,890 crore valuation at which Niveshaay first backed the company in May 2024.

The solar photovoltaic module manufacturer listed at Rs 338 per share on the NSE, a slim 1.81% premium over its issue price of Rs 332. On the BSE, it opened slightly better at Rs 340, up 2.4%. While the debut was muted, the stock quickly drew investor appetite, rallying up to 10% intraday before cooling off.

“Our conviction was that renewables would be a defining pillar of India’s growth, and that Vikram Solar, as a sector leader, was uniquely positioned to benefit disproportionately,” said Niveshaay.

At the time of investment, Vikram Solar was executing a strategic turnaround – exiting a stressed EPC business, doubling down on module manufacturing, sharpening its export focus, and leveraging government incentives.

For Niveshaay, the successful listing underscores its philosophy of identifying scalable businesses at inflection points. “Vikram Solar’s IPO debut stands as a testament to the power of backing the right business at the right time,” it said.

What’s driving the optimism?

Vikram Solar is reaping the benefits of that pivot to renewables. The company has expanded integrated capacity, secured strong export traction, stabilised its financials, and continues to enjoy robust government support under renewable energy schemes.Even at a premium valuation of about 72 times earnings, analysts say investors are pricing in sustained growth potential – from India’s push toward clean energy to Vikram Solar’s ability to capture global demand.While the muted listing may have surprised some, long-term investors see the trajectory as far more important. Analysts say this isn’t about day-one fireworks. “It’s about where India’s solar story is headed – and Vikram Solar has just plugged itself firmly into that grid.”
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)



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