Insolation Energy Limited IPO

Apply 0
Avoid 0

i. Insolation Energy is engaged in the business of manufacturing solar panels and modules of high efficiency of various sizes as per the demand in the market from its fully automatic a state-of-the-art 200 MW (Rated Installed Capacity) SPV Module manufacturing unit located at Jaipur, spread in more than 60,000 Sq. ft area with latest machinery and stringent quality assurance process which delivers quality solar PV module.

ii. In addition to the manufacture of solar PV modules, the Company also trades in Solar Power Conditioning Unit (PCU) which uses solar energy and power from the grid to charge batteries and tall tabular Lead Acid Batteries which are used to store energy generated from the solar panels.

iii. The company has built a strong brand reputation for its solar PV modules manufactured on a fully automatic state-of-art manufacturing unit and sold under the brand name of “INA” along with a successful track record of developing, engineering and constructing.

iv. The solar PV modules are currently manufactured using both polycrystalline and Mono-PERC crystalline cell technology. Company’s portfolio of solar energy products consists of the following solar PV modules which includes bifacial (glass – to – Transparent back sheet modules) and are differentiated on the basis of solar PV module technology and type as well as cell size: (i) polycrystalline modules; and
(ii) monocrystalline passivated emitter and rear cell (Mono PERC) modules.

v. Insolation Energy is in the business of solar PV module technologies for more than last 5 years, during which time it has developed strong engineering capabilities in producing high efficiency PV modules.

vi. Insolation Energy  has successfully established a geographically diversified presence in India through an extensive distributor network of 30+ distributors. The local presence and distributor network along with its brand recognition should ensure that the company is well-placed to serve this growing market. The key domestic customers include Livguard Energy Technologies Pvt. Ltd., Livfast Batteries Pvt. Ltd., Shakti Pumps India Ltd., Microtek international P. Ltd., Zunroof Tech Pvt. Ltd. etc.

vii. In 2020, the company diversified into the area of Solar Power Pack and successfully launched Solar Tubular / Li-ion Batteries and Solar PCU. These are designed after thorough market inputs and best available techniques. This Solar Combo offering with adequate storage is fast gaining popularity and helping the home office and home education community in cities, towns and villages.

viii. Competitive Strengths
Experienced key management personnel
Strong relationships with customers, employees and other key stakeholders 
Strong growth and financial performance backed by an asset light business model

Objects of the Insolation Energy Limited IPO:

The objects of the issue are: i. Funding the Working capital requirements of the Company; and ii. General corporate purposes.

Insolation Energy Limited IPO Details:

Open Date: Sep 26 2022
Close Date: Sep 29 2022
Face Value: ₹ 10 Per Equity Share
Issue Type: fixed issue
Issue Size: 22.16 Cr.
Lot Size: 3000 Shares
Issue Price: ₹ 36-38 Per Equity Share
Listing At: BSE SME
Listing Date: Oct 10 2022

Promoters And Management:

i. Mr. Manish Gupta is the Promoter, Chairman and Whole-Time Director of Insolation Energy Limited (INA) and is first generation entrepreneur with a rich experience and exposure of more than 21 years in various sectors such as Steel, Industrial Pipeline Accessories, Real Estate, Health & Fitness, and Independent Solar Power Producer. He is graduated in Bachelor of Engineering from North Maharashtra University, Jalgaon. He created a robust supply chain network and a trusted customer base for his ventures, to name a few Fluidcon Engineers, Pinkcity Pipe Fittings Pvt. Ltd. etc. ii. Vika Jain is the Promoter and Managing Director of the Company. He is an Engineering Graduate and acquires exceptional skills to build a technology driven enterprise. He has completed his Bachelor of Engineering from North Maharashtra University, Jalgaon. He has more than two decades of experience and is Founder-Director of eminent business houses like Fluidcon Engineers and Pinkcity Pipe Fittings Pvt. Ltd. etc. iii. Ekta Jain is the Non - Executive Director of the Company. She has completed her post-graduation in Business Management from the Institute of Productivity & Management, Meerut. She is giving her services as a Business Administration Manager for over 10 years in Fluidcon Engineers. She is an experienced self-motivated and driven Business and Management Professional bringing forth valuable industry experience and a passion for working toward organizational advancement. She joined our company as director in the year 2021.

Financials of Insolation Energy Limited IPO:

Particulars (in Cr) March 22 March 21 March-20
Revenue from operations 215 162 88
Cost of Materials Consumed 178 121 67
Purchase of Stock in Trade 6.86 17 5.4
Change in inventory -2.36 -2.26 -0.26
Employee Benefit Expense 5.77 4.56 3.20
Other Expense 12.84 9.35 5.86
Operating Profit 13.89 12.35 6.80
OPM% 6.46% 7.62% 7.73%
Finance Cost 2.3 1.48 1.08
Depreciation 2.0 1.39 1.2
No. of Shares 2.08 2.08 2.08
Profit (Loss) for the period 6.92 6.89 3.09
EPS 3.33 3.31 1.49

Comparison With Peers:

Name of the Company Revenue CMP EPS P/E
Insolation Energy Limited 215 38 3.33 12
Swelect Energy System Limited 158.95 347 22 15.8
Waa Solar Limited 45.72 42 5.47 7.5
Websol Energy System Limited 213 103 2.64 50

Recommendation on Insolation Energy Limited IPO:

Review and Recommendation of Isolation Energy IPO by IZ Team is 5/10

1. The revenue has grown from 88 crores in Fy21 to 215 crores in Fy22. 2. EBITDA Margins are in the range of 6.46% to 7.73% in the last 3 years. 3. PAT has doubled in the last 3 years from 3 Crores in Fy19 to 7 Crores in Fy22. 4. Company in the last 3 years is generating positive cash flows from operations which is a good sign. 5. ~30 Crores of Borrowing is sitting on the books as on 31.03.2022. Equity as on 31.03.2022 is, 22 Crores. So, D/E is more than 1. 6. P/E of 12x looks decently priced. 

Lead Manager of Insolation Energy Limited IPO:

  1. Holani Consultants Private Limited

Registrar of Insolation Energy Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Insolation Energy Limited G-25, City Centre, Sansarchand Road, Near MI Road, Jaipur, Rajasthan Phone: +91– 9116122139 Email: Website

Discussion on Insolation Energy Limited IPO:

1 Comment

Leave a Reply