Emmvee Photovoltaic Power makes a flat debut. Should investors stay put or leave?

Shares of Emmvee Photovoltaic Power remained muted after a flat trading on Tuesday, debuting at Rs 217 on both the BSE and NSE – right in line with the issue price. The subdued start did not come as a surprise considering tepid subscription during the three-day offering period and a gray market premium (GMP) falling to zero ahead of the listing from Rs 20 a day before the IPO, reflecting lukewarm investor sentiment.Master Capital Services believes that liquidity in the business can be built gradually and therefore Emmvee Photovoltaic Power fits into growth-oriented portfolios seeking solar exposure. The brokerage recommends investors keep an eye on Q3’26 earnings to assess margin performance amid competitive pressure on prices.

“Emmvee Photovoltaic Power is India’s second largest pure-play integrated manufacturer of solar PV modules and cells, known for its reliable products with cutting-edge technology. The company has an early mover lead in high-efficiency TOPCon cells, with integrated operations across the value chain supporting productivity and sustainability, and strong customer relationships underpin a growing order book. Keep an eye on Q3FY26 results for continued margins amid competitive pressure on the prices,” said Master Capital.Emmvee Photovoltaic Power IPO was 97% subscribed, receiving nearly 7.50 crore equity bids against an offer size of 7.74 crore shares. The retail portion was fully subscribed 1.1 times, while the non-institutional investor (NII) quota was only 30% subscribed. As for the Qualified Institutional Buyers (QIB) segment, the portion was fully booked at 1.30 times.

The Rs 2,900 crore IPO included a fresh issue of Rs 2,143.86 crore and an offer for sale of Rs 756.14 crore. The issue was open for subscription between November 11 and 13, and allotments were completed on November 14.

Notably, the company raised Rs 1,305 crore from anchor investors on November 10, with 6.01 crore shares allotted to the anchor book. The mandatory lock-in for half of this section ends on December 14.

Company overview

Emmvee Photovoltaic Power is one of India’s largest manufacturers of integrated solar PV modules and cells. As of May 31, 2025, it had a module capacity of 7.80 GW and a cell capacity of 2.94 GW, with four manufacturing units spread across two locations in Karnataka. The factory in Dobbaspet, Bengaluru, is one of India’s largest TOPCon solar cell factories. The company’s product mix includes bifacial and monofacial TOPCon modules and Mono PERC modules.

In FY25, Emmvee posted a robust performance, with revenue rising 147% to Rs 2,360.33 crore and PAT rising 1,177% to Rs 369.01 crore. EBITDA rose almost sixfold to Rs 721.94 crore, driven by higher occupancy, improved pricing and operating leverage.

Proceeds from the fresh issue will be used primarily for repayment or prepayment of loans worth Rs 1,621.29 crore and for general corporate purposes. Cleaning up the debt could significantly strengthen the balance sheet in the coming years.

While analysts recognize Emmvee’s strong industry background and early-mover advantage in TOPCon technology, they note that the IPO’s valuation appears fully priced. With a GMP of 0%, the listing is expected to remain flat unless market sentiment turns sharply positive ahead of the debut.

However, the company’s long-term prospects remain dependent on the pace of solar installations and the success of government-led renewable programs.

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(Disclaimer: Recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of The Economic Times.)