On November 13, 2025, Fujiyama Power Systems, a Noida-based solar panel and battery manufacturer, launched its ₹828 crore initial public offering — a bold bet on India’s renewable energy future. But here’s the twist: despite strong financials and a strategic push into manufacturing, the IPO struggled to ignite investor enthusiasm. By the close of subscriptions on November 17, it had attracted just 84% of its target, a tepid response that raised eyebrows in Mumbai’s trading floors. The company, which reported a 245% surge in profits last year, now waits to see if its November 20 listing on the Bombay Stock Exchange and National Stock Exchange can turn skepticism into confidence.
The Numbers Behind the Push
Fujiyama Power Systems isn’t just another solar startup. In fiscal year 2025, revenue jumped 67% to ₹1,550 crore from ₹927 crore the prior year. Profit after tax exploded from ₹45 crore to ₹156 crore — a 245% gain. Over two years, its revenue grew from ₹664 crore in FY23 to over ₹1,540 crore in FY25, a compound annual growth rate of nearly 52%. That’s not just impressive — it’s industry-leading for a mid-sized player.
The IPO structure is equally detailed: ₹600 crore in fresh equity and ₹228 crore via an offer for sale by promoters. At the upper price band of ₹228 per share, the company secured ₹246.89 crore from anchor investors before the public even got a chance to subscribe. That’s a strong signal — but not enough. The minimum lot size? 65 shares, or ₹14,820 at the top end. Retail investors could buy up to 13 lots. The allocation? 50% to institutions, 15% to non-institutional buyers, and 35% reserved for retail — all standard, but not exactly thrilling.
Where the Money’s Going
Fujiyama isn’t raising cash just to pay dividends. The red herring prospectus spells out a clear plan: ₹180 crore for a new manufacturing plant in Ratlam, Madhya Pradesh, ₹275 crore to repay debt, and the rest for general corporate use. This isn’t vanity funding — it’s infrastructure building. The company currently runs four production units across Northern India, all clustered near its headquarters in Noida, Uttar Pradesh. The Ratlam facility will be its first major expansion beyond the north, targeting the central and western markets where solar adoption is accelerating.
Why Ratlam? It’s not just cheap land. The state government offers incentives under India’s Production Linked Incentive (PLI) scheme for solar manufacturing. Fujiyama’s move aligns with the national goal of 500 GW of renewable capacity by 2030. That’s the big picture. But investors, it seems, are focused on the small print.
Why the Cold Shoulder?
By the morning of November 15, just three days in, the IPO had attracted only 45% subscription. That’s unusually low for a company with Fujiyama’s growth profile. By the final day, it climbed to 84% — still below par. The grey market premium? Nearly flat. No speculative frenzy. No retail rush. Analysts at Samco pointed to a broader trend: investors are wary of mid-sized solar manufacturers. The sector is crowded. Giants like Adani Green Energy Limited dominate headlines and institutional portfolios. Smaller players? They’re seen as risky.
Compare this to Saatvik Green Energy’s IPO in September 2025 — which also saw muted demand. Even though Asit C Mehta maintained an ‘Accumulate’ rating on Adani Green Energy with a ₹1,388 target price in late October, institutional appetite for non-blue-chip solar names remains cautious. Why? Rising raw material costs, import dependency on Chinese solar cells, and regulatory delays in grid connectivity are dampening sentiment.
What This Means for India’s Clean Energy Race
Fujiyama’s IPO isn’t just a company story — it’s a bellwether. India added over 17 GW of solar capacity in FY25 alone. Rooftop installations grew 40% year-on-year. The government is pushing hard. But the capital markets? They’re not keeping pace. Investors are betting on scale. They want proven operators with gigawatt-scale projects, not ₹1,500 crore revenue firms with four factories.
Still, Fujiyama’s financial discipline stands out. Its debt-to-equity ratio improved from 1.8 in FY24 to 1.1 in FY25 — a sign of prudent management. Its focus on battery storage — not just panels — could be its differentiator. As grid instability grows, home battery systems are becoming essential. Fujiyama’s products already serve over 120,000 households across 18 states. That’s not nothing.
What’s Next?
Share allotment wraps up on November 18. Listing day — November 20 — will be the real test. Will the stock open at ₹228? Or below ₹200? If it trades below issue price, it could chill future IPOs in the renewable manufacturing space. But if it holds steady, it might signal that quality mid-cap solar firms still have a path — if they’re patient and persistent.
Meanwhile, Fujiyama’s leadership is staying quiet. No press releases. No investor roadshows after the anchor book closed. That’s unusual. Most companies panic at weak demand. Fujiyama? They’re betting on fundamentals. And sometimes, that’s the smartest play.
Frequently Asked Questions
Why did Fujiyama Power Systems’ IPO underperform despite strong financials?
Despite a 245% profit jump and 67% revenue growth, investors grew cautious about mid-sized solar manufacturers in late 2025. Concerns over competition from giants like Adani Green Energy, reliance on imported solar cells, and lack of scale in project pipelines made Fujiyama appear less attractive than larger, vertically integrated players. The absence of a strong grey market premium confirmed this sentiment.
How will the ₹180 crore from the IPO be used, and why does it matter?
Fujiyama plans to build a new manufacturing facility in Ratlam, Madhya Pradesh, to expand production capacity and tap into central India’s growing rooftop solar market. This move is strategic — it reduces logistics costs, qualifies for state-level PLI incentives, and positions the company to serve markets beyond northern India. Manufacturing scale is critical to lowering per-unit costs in solar.
What’s the significance of the ₹275 crore debt repayment?
Repaying ₹275 crore in borrowings will reduce Fujiyama’s debt-to-equity ratio further, lowering interest expenses and improving cash flow. This strengthens its balance sheet ahead of potential acquisitions or future capital raises. It signals financial maturity — a rare trait among Indian solar manufacturers still reliant on debt.
How does Fujiyama compare to Adani Green Energy?
Adani Green operates at gigawatt scale with over 16.6 GW installed and a 34 GW pipeline, targeting 50 GW by 2030. Fujiyama, with ₹1,550 crore revenue and four factories, is a manufacturer, not a power producer. They operate in different layers of the value chain: Adani builds plants; Fujiyama builds panels and batteries for those plants — and homes. Their growth models aren’t directly comparable.
Is this IPO a sign that India’s solar manufacturing sector is struggling?
Not necessarily. Fujiyama’s weak subscription reflects investor preference for scale and government-backed projects, not a collapse in demand. The sector is booming — but capital is flowing to the biggest names. Smaller players like Fujiyama need time to build brand trust. This IPO’s outcome may push others to merge or seek private funding instead of public markets.
When will investors get their shares, and what’s the listing date?
Allotment is scheduled for November 18, 2025, with refunds processed and shares credited to Demat accounts by November 19. The tentative listing date is November 20, 2025, on both the Bombay Stock Exchange and National Stock Exchange. Investors should monitor opening prices closely — early trading will reveal market sentiment.
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