Upcoming IPO: Fujiyama Power Systems Filed DRHP WIth SEBI

Fujiyama Power Systems, a rooftop solar company based in Noida, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO).

Fujiyama Power Systems IPO Details

This upcoming IPO consists of a fresh share issue of up to ₹700 crore, along with an offer for sale (OFS) of up to 20 million shares, each with a face value of ₹1. Promoters Pawan Kumar Garg and Yogesh Dua are each offering up to 10 million shares in the OFS.

The company has also indicated the possibility of a pre-IPO placement amounting to ₹140 crore. If the pre-IPO placement is successful, the size of the fresh issue will be reduced accordingly.

Motilal Oswal Investment Advisors and SBI Capital Markets are serving as the book-running lead managers for the offering, with Link Intime India acting as the registrar. The company intends to list its shares on both the BSE and NSE.

Use of IPO Proceeds

The proceeds from the fresh issue will be utilized for several purposes: ₹250 crore for setting up a manufacturing facility in Ratlam, Madhya Pradesh; ₹300 crore for repaying certain outstanding borrowings; and the remaining amount for general corporate purposes.

About Fujiyama Power Systems

Founded in 1996, Fujiyama Power Systems is a manufacturer and solution provider in the rooftop solar industry, specializing in on-grid, off-grid, and hybrid solar systems.

The company’s DRHP highlights that Fujiyama was the first Indian company to develop an SMT-based inverter with a single card in 2000. It expanded its product portfolio by starting the manufacture of solar power conditioning units (PCUs) in 2012, followed by online solar PCUs in 2014. Today, Fujiyama offers a diverse range of products, including solar panels, inverters, lead-acid and lithium-ion batteries, and EV chargers. The company serves both domestic and international markets, including the USA, Bangladesh, and the UAE.

Fujiyama operates 3 manufacturing facilities located in Uttar Pradesh, Himachal Pradesh, and Haryana.

For the fiscal year 2024, the company’s revenue increased by 39.24%, rising from ₹664.08 crore in FY 2023 to ₹924.69 crore. This growth was driven primarily by higher sales of its solar products and services. Profit after tax surged by 85.93%, rising from ₹24.37 crore in FY 2023 to ₹45.30 crore in FY 2024.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities market are subject to market risks, read all the related documents carefully before investing.