Sahaj Solar Limited IPO

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Sahaj Solar Limited is a leading provider of solar solutions with nearly a decade of experience across multiple sectors of renewable power generation. Their dual role as both a manufacturer and a service provider positions them uniquely within the solar power market. Their core business operations are divided into three main categories: PV Module Manufacturing, Solar Pumping Systems, and EPC (Engineering, Procurement, and Construction) Services.

Solar Water Pumping Systems

They provide solar water pumping systems that utilize solar energy to generate electricity, powering motors and pumps to extract water from bore wells, rivers, lakes, or ponds. Their solar panels, a critical component of these systems, are manufactured in-house. Another vital component, the module mounting structure (MMS), is produced by Veracity Energy and Infrastructure Private Limited, a subsidiary of their company. Additionally, the controller for the solar water pumping system is designed by Veracity Powertronics Private Limited, another subsidiary. These components constitute over 70% of the total system cost, while the remaining parts are outsourced. As part of the Pradhan Mantri Kisan Urja Suraksha evem Utthan Mahabhiyan (PM KUSUM) scheme, launched by the Ministry of New and Renewable Energy (MNRE), more than 20 lakh farmers will benefit from standalone solar water pumping systems. This initiative helps farmers achieve multiple seasonal crop productions, thereby boosting their incomes and independence from grid power. They also design and customize solar mobile trolleys for rural and remote areas, facilitating the generation of electricity for water pumping and other off-grid utilities.

EPC Services

As an integrated solar energy solutions provider, they offer comprehensive EPC services. These services encompass the design, supply, installation, testing, commissioning, and maintenance of solar projects ranging from small domestic installations to large-scale solar power plants. Their expertise in managing projects of varying sizes ensures that we deliver optimal solutions tailored to our clients’ needs.

By maintaining these high standards, they continue to deliver reliable and efficient solar energy solutions to their customers, contributing to the growth and sustainability of the renewable energy sector.

Objects of the Sahaj Solar Limited IPO:

The Company proposes to utilize the funds which are being raised through this Offer towards the following objects: i. Working Capital Requirements of the Company; and ii. General Corporate Purposes.
DRHP of Sahaj Solar Limited IPO
RHP of Sahaj Solar Limited IPO

Sahaj Solar Limited IPO Details:

Open Date: Jul 11 2024
Close Date: Jul 15 2024
Total Shares: 2,920,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 52.56 Cr.
Lot Size: 800 Shares
Issue Price: ₹ 171 - 180 Per Equity Share
Listing At: NSE Emerge
Listing Date: Jul 19 2024

Promoters And Management:

Mr. Pramit Bharatkumar Brahmbhatt, Chairman and Managing Director of the Company, is a Chartered Accountant from ACCA, London, with an MBA in Finance from Gujarat University. He joined the Board in 2014 and has 9 years of experience in the solar industry. Under his leadership, the Company has seen consistent growth. He founded Veracity Energy and Infrastructures Pvt. Ltd. in 2012, and between 2010 and 2014, established Veracity Financial Services Pvt. Ltd., Veracity Broking Services Pvt. Ltd., and Veracity Powertronics Pvt Ltd., offering diverse financial and advisory services. Mr. Kanaksinh Agarsinh Gohil, Executive Director of the Company and Board member since 2014, has a Higher Secondary Education qualification and 8 years of experience in the solar industry. He has extensive knowledge in EPC work, overseeing PV panel production and logistics at Sahaj Solar. His innovative ideas and insights significantly contribute to the company's success. Mr. Sureshchandra Naharsinh Rao, Non-Executive Director of the Company, holds a postgraduate degree in Statistics with a specialization in Operations Research and Econometrics from The M S University of Baroda. He has furthered his knowledge in IT, Commerce, and HR at IIM Ahmedabad and IIM Bangalore. He is proficient in Business Applications, MIS, ERP, Logistics & Supply Chain Management, and Human Resource Management. Mr. Rao plays a key role in developing and implementing ERP, HR, and Project Management systems in the Company.

Financials of Sahaj Solar Limited IPO:

Particulars ( In Lakhs )
2021
2022
2023
2024
Revenue from Operations 6,193 6,677 18,536 20,117
Other Income 25 52 44 54
Total Revenue 6,219 6,729 18,580 20,172
Cost of Material Consumed 4,853 5,599 16,175 14,961
Purchases of Stock-in-Trade 0 0 0 974
Change in Inventories 259 -69 350 -674
Employees Benefit Expenses 281 284 255 416
Other Expenses 498 474 623 2,001
EBITDA 327 441 1,177 2,492
OPM (%) 5.25% 6.56% 6.34% 12.36%
Depreciation & Amortisation 118 133 124 116
EBIT 209 308 1,053 2,376
Finance Cost 110 167 197 417
PBT 99 142 856 1959
Tax 29 39 208 621
PAT 71 103 648 1337
NPM (%) 1.13% 1.52% 3.49% 6.63%
No.of Shares 109.86 109.86 109.86 109.86
EPS 0.64 0.93 5.90 12.17

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Sahaj Solar Limited 201 13 12.17 14.8 180 198
Solex Energy Limited 366 9 10.91 124.0 1,356 1,085
Zodiac Energy Limited 220 11 7.50 98.6 734 1,082
Shakti Pumps (India) Limited 1,371 142 70.73 57.4 4,075 8,128
* All the data is as per FY24.

Recommendation on Sahaj Solar Limited IPO:

1. Sahaj Solar Limited is a renewable energy solution provider with a decade of experience in the solar power market. The company operates in three major business areas: i. PV Module Manufacturing                          ii. Solar Water Pumping Systems iii. Engineering, Procurement, and Construction (EPC) Services 2. PV Module Manufacturing The company produces mono and polycrystalline PV modules, including Mono PERC (Passivated Emitter and Rear Contact) modules with efficiencies of 21% or higher. Using Crystalline Photovoltaic Technology, the plant can manufacture customized PV modules under the brand name ‘SAHAJ’. 3. Solar Water Pumping Systems The company provides solar water pumping systems that convert solar energy into electricity to power motors and pumps. These systems are designed to pump water from bore wells, rivers, lakes, or ponds. 4. EPC Services EPC services, including design, supply, installation, testing, commissioning, and maintenance of solar projects. The company's EPC services cater to a wide range of projects from domestic solar installations to large-scale solar power plants. 5. Subsidiaries Sahaj Solar Limited has three subsidiaries: i. Veracity Energy and Infrastructure Private Limited (VEIPL) ii. Veracity Powertronics Private Limited (VPPL) iii. Sustainable Plant Green Energies Private Limited (SPGEPL) 6. Market Presence and Clientele Sahaj Solar Limited has established a strong presence across India, catering to both government and private customers. The company's customer base includes: i. Government Customers: MGVCL, DGVCL, PGVCL, GEDA, HAREDA, MEDA, Maharashtra State Electricity Distribution Co. Ltd. ii. Private Customers: Mahindra Susten Private Limited, Mahindra Solarize Private Limited, Secured Meters, Eglo, Shekhani Industries, Nuvoco Cements (Lafarge Cements), Tenneco, Valeo, Rotomag, Premier Solar, and Iron Mountain. 7. Competition The renewable energy sector is highly competitive, with numerous manufacturers and service providers. Despite intense competition, Sahaj Solar Limited has maintained steady growth due to its strategic operational policies and extensive experience in executing private and government contracts. 8. The Revenue has Increased from Rs.62 Crores in FY21 to Rs.201 Crores in FY24. 9. The EBITDA has Increased from 3 Crores in FY21 to 25 Crores in FY24. 10. The PAT has Increased from 71 Lakhs in FY21 to 13 Crores in FY24. 11. As per FY24, CFO/EBITDA is 0.89, and EPS is 12.17, 12. Market Capitalization is 198 Crores and P/E is 14.8x based on FY24.

Lead Manager of Sahaj Solar Limited IPO:

  1. Kunvarji Finstock Pvt Ltd.

Registrar of Sahaj Solar Limited IPO:

  1. Kfin Technology Private Limited

Company Address:

Sahaj Solar Limited Office No. 301, Ashirvad Paras, Opp. Prahladnagar Garden, Satellite, Ahmedabad - 380051 Phone: +91-079-68171800 Email: cs@sahajsolar.com Website: http://www.sahajsolar.com/

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