IPO for Repayment of Debt and Capacity Expansion
Fujiyama Power Systems Ltd. (FPSL) is a leading manufacturer and solution provider in the Indian rooftop solar industry offering an integrated ecosystem of solar products. Originally founded in 1996 as UTL Electronics, the entity was converted into a partnership firm in 2018 and later restructured as a public company.
The company is promoted by Pawan Garg (38.68%), Yogesh Dua (38.68%), and Sunil Kumar (4.91%). Two of the promoters are offering 5 million shares each through the Offer for Sale (OFS). Post-IPO, the promoters’ holding will reduce to 87.9%.
IPO details:
| Name of the Company | Fujiyama |
| Issue Open | 13-11-2025 |
| Issue closes | 17-11-2025 |
| Issue Size | Rs. crore |
| Fresh issue | 600 |
| Offer for sale | 228 |
| Face Value per share (Re.) | 1 |
| Upper issue price band (Rs.) | 228 |
Objects of the Issue:
Proceeds from the fresh issue will be utilized for:
- Repayment / prepayment of existing borrowings (Rs 275 crore)
- Part-financing the new plant at Madhya Pradesh (Rs 180 crore)
Financial Performance:
The company manufactures rooftop solar systems, inverters, panels and batteries. It reported revenue CAGR of 52.7% between FY23 and FY25 reaching Rs. 1,550 crore in FY25. Profitability improved significantly, with EBITDA margin rising from 10.7% to 16.1%, and PAT margin expanding from 4.9% to 10.2%. As per the RHP, this margin expansion is attributed to better fixed cost absorption, enhanced operating efficiency, and scale benefits. EPS for FY25 stood at Rs 5.6.
The company derives it income from Solar panel (36%), solar battery (25%), Solar UPS/convertor/invertor (24%) and balance 15% from e-rickshaw charger and service income.
| Particulars | Jun-25 | Mar-25 | Mar-24 | Mar-23 | CAGR (%) |
| Number of months | 3 | 12 | 12 | 12 | — |
| Total Income (Rs crore) | 598 | 1,550 | 927 | 665 | 52.7 |
| Net Profit (Rs crore) | 68 | 156 | 45 | 24 | — |
| EPS (Rs) | 2.4 | 5.6 | 1.6 | 0.9 | — |
The company’s borrowings as on 30th June 2025 stood at Rs 433 crore, which increased by Rs 200 crore to Rs 630 crore. The higher borrowings were primarily for vendor financing to maintain higher inventory levels. The average cost of borrowings is around 9.5%. Any delay in repayment of these borrowings from IPO proceeds could adversely impact financial performance.
Peer Comparison:
As per the RHP, FPSL’s peers include Waaree Energies Ltd., Premier Energies Ltd., Exicom Tele-Systems Ltd. and Insolation Energy Ltd.
| Peer Comparison (FY25) | Fujiyama | Waaree | Premier | Exicom |
| Revenue (Rs crore) | 1,550 | 11,398 | 3,144 | 1,020 |
| Market Cap (Rs crore) | 7,000 | 95,480 | 46,520 | 1,885 |
| EPS (Rs) | 5.6 | 100 | 21.4 | -9.1 |
| Current Market Price (Rs) | 228 (upper price band) | 3,319 | 1,027 | 136 |
| P/E Ratio (No. of times) | 40.8 | 33.2 | 48.0 | -14.9 |
| Market Cap to Revenue (No. of times) | 4.5 | 8.4 | 14.8 | 1.8 |
Valuation Perspective:
Waaree, a leader in the industry, is quoting at a P/E ratio of 33 times compared to 40 times for Fujiyama. Waaree’s market cap-to-revenue multiple stands higher at 8.4 times versus 4.5 times for Fujiyama.
Exicom, a listed peer, came out with its IPO in February 2024 and is currently quoting at Rs 136, below its offer price of Rs 142. Premier, which launched its IPO in September 2024 at Rs 450, is now quoted at Rs 1,027. Waaree too is trading above its offer price.
Conclusion:
Debt repayment will improve profitability. However, the sharp expansion in margins before the IPO raises questions about the sustainability of higher margin levels.
The promoters, relatively new to the investor community, are seeking a valuation at 40 times earnings in an already crowded IPO market — suggesting a wait-and-watch approach.
Disclaimer:
The writer is not a SEBI-registered analyst. He and his friends or relatives may or may not participate in the IPO. This article is intended purely for educational purposes. Investors are advised to consult their financial advisors before making any investment decisions. The grey market premium should be viewed only as an indicator and not as a reliable benchmark for listing performance.
