Fujiyama Power Systems Files Draft Papers with Sebi to Raise Funds Through IPO

Fujiyama Power Systems, based in Greater Noida, has submitted initial documents to the Securities and Exchange Board of India (Sebi) for an initial public offering (IPO). The IPO includes a fresh equity issue worth up to Rs 700 crore and an offer-for-sale (OFS) of up to 2 crore shares by promoters. This information is detailed in the Draft Red Herring Prospectus (DRHP) filed on December 28.

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The OFS will see Pawan Kumar Garg and Yogesh Dua each selling one crore equity shares. Additionally, Fujiyama Power Systems might raise Rs 140 crore through a pre-IPO placement. If this occurs, the size of the fresh issue will be adjusted accordingly. The funds from the fresh issue are intended for setting up a manufacturing facility in Ratlam, Madhya Pradesh, repaying debt, and other corporate needs.

Solar Industry Focus

Fujiyama Power Systems specialises in the rooftop solar sector, offering on-grid, off-grid, and hybrid solar systems. The company has established a strong brand presence with UTL Solar, which has been around for 28 years, and Fujiyama Solar. It operates three manufacturing facilities and has developed research and development capabilities within India, focusing on technological advancements and product innovation.

In recent years, Fujiyama Power Systems has achieved significant sales figures. Over the past three financial years and six months ending September 30, 2024, they sold 12.25 lakh solar panels (458.14 MW), 6.31 lakh solar inverters (1,065.83 MW), and 8.52 lakh batteries (1,672.17 MWh). The company is also working on a new solar panel manufacturing facility in Dadri, Uttar Pradesh, and plans to add another inverter line at its Greater Noida facility.

Financial Performance

For the six months ending in September, Fujiyama reported a net profit of Rs 75.1 crore with revenue reaching Rs 721.7 crore. This financial performance reflects the company's growth trajectory in the solar industry.

Motilal Oswal Investment Advisors Ltd and SBI Capital Markets Ltd are acting as the book-running lead managers for the IPO. Link Intime India Pvt Ltd is serving as the registrar for this issue. The company's shares are set to be listed on both the National Stock Exchange (NSE) and BSE.