Fujiyama Power Systems Ltd. IPO Details & Review

A global leader in industrial power systems. We provide advanced battery technology, reliable backup power, and energy management for critical infrastructure.

Industry Outlook

The company operates in the Renewable Energy sector, specifically focusing on the Rooftop Solar and Power Backup industry. India's target to reach 500 GW of renewable energy capacity by 2030, combined with government schemes like PM Surya Ghar Muft Bijli Yojana, creates a strong structural tailwind for residential and commercial solar adoption.

About company

Fujiyama Power Systems Ltd. (commonly known by its brand UTL Solar) was incorporated in 2017 but carries a legacy of over 28 years in the power electronics field. It is an integrated manufacturer of solar and power backup solutions.

Headquarters: Greater Noida, Uttar Pradesh.
Manufacturing: Operates 4 manufacturing facilities across India (UP, Haryana, Himachal Pradesh).
Reach: Strong rural and semi-urban presence with 725+ distributors and 1,100+ exclusive "UTL Shoppes".

Core Business: The company primarily operates in the B2C (Business to Consumer) segment, which accounts for ~90% of its revenue.

Product Portfolio:
- Solar Inverters: Off-grid, On-grid, and Hybrid inverters.
- Solar Panels: Poly and Mono-crystalline panels.
- Batteries: Lithium-ion batteries (growing segment) and Tubular Lead-Acid batteries.
- UPS & Chargers: E-rickshaw chargers and home UPS.
Market Position: A significant player in the "Off-Grid" solar market, catering heavily to Tier-2 and Tier-3 cities where power stability is a concern.
Promoters: Mr. Pawan Kumar Garg and Mr. Yogesh Dua

Key IPO Details

Feature	Details
IPO Opening Date	Thursday, November 13, 2025
IPO Closing Date	Monday, November 17, 2025
Listing Date	Thursday, November 20, 2025 (Today)
Face Value	₹1 per share
Price Band	₹216 to ₹228 per share
Lot Size	65 Shares
Total Issue Size	₹828 Crores
Fresh Issue	₹600 Crores (Funds for New Plant & Debt Repayment)
Offer For Sale (OFS)	₹228 Crores (Promoters Selling Stake)
Listing Exchanges	BSE, NSE
Registrar	MUFG Intime India Pvt. Ltd. (formerly Link Intime)

Timeline

Event	Date	Status
IPO Opens	Thursday, Nov 13, 2025	✅ Closed
IPO Closes	Monday, Nov 17, 2025	✅ Closed
Final Allotment	Tuesday, Nov 18, 2025	✅ Declared
Refunds Initiated	Wednesday, Nov 19, 2025	✅ Processed
Shares Credited to Demat	Wednesday, Nov 19, 2025	✅ Completed
Listing Date	Thursday, Nov 20, 2025

IPO Objective

The IPO raised a total of ₹828 Crores. It is crucial to note that the company will only benefit from the Fresh Issue component (₹600 Cr), while the remaining amount goes to the selling shareholders.

1. Utilization of Fresh Issue Proceeds (₹600 Cr): The net proceeds from the fresh issue are allocated for the following specific purposes:

₹275 Crores: Repayment of Debt
₹180 Crores: New Manufacturing Facility (Ratlam, MP)
Balance Amount: General Corporate Purposes

2. Offer for Sale (₹228 Cr)

This money goes directly to the Promoters (Mr. Pawan Kumar Garg and Mr. Yogesh Dua) who sold a portion of their stake. The company does not receive any cash from this component.

SWOT Analysis

STRENGTHS	WEAKNESSES
1. Strong B2C Network. 2. Integrated Manufacturing 3. High Return Ratios 4. Brand Legacy	1. Import Dependency 2. Regional Concentration 3. Sustainability of Growth 4. Low Institutional Trust

OPPORTUNITIES	THREATS
1. PM Surya Ghar Scheme 2. Ratlam Expansion 3. Battery Storage Market 4. Debt Reduction	1. Intense Competition 2. Technology Shifts 3. Pricing Wars 4. Policy Risks

Peer Comparison: Financials & Valuation (FY25 Data)

Company	M-Cap (₹ Cr)	Revenue (₹ Cr)	P/E Ratio (x)	ROE (%)	Focus Area
Waaree Energies	~95,000	14,445	~49x	20.1%	B2B Market Leader (Solar Modules)
Premier Energies	~46,000	6,519	~48x	33.2%	B2B (Solar Cells & Modules)
Insolation Energy	~3,900	1,334	~32x	20.5%	Solar Panels (SME Listed)
Exicom Tele-Systems	~1,750	868	N/A (Loss)	-17.9%	EV Chargers & Critical Power
Fujiyama Power	~6,800	1,541	~45x	39.4%	B2C Retail (Inverters + Batteries)

Should You Apply? (Review)

The Verdict: Neutral / Wait-and-Watch ⚠️Recommendation: Avoid fresh buying immediately. Wait for 1-2 quarterly results to confirm if the massive profit jump in FY25 is sustainable.

1. For Listing Gain Seekers (Short Term)

Status: Missed Opportunity. The stock listed at a discount (~3.5% loss).
Action: If you were allotted shares, there is no immediate listing pop to capture. The grey market premium (GMP) had already evaporated before listing, signaling this weakness.
- Stop Loss: If you are holding, maintain a strict stop-loss near ₹210.

2. For Long-Term Investors (1-3 Years)

The "Buy" Argument:
- High Efficiency: The company generates a Return on Equity (ROE) of ~39%, which is exceptional and better than many larger peers.
- Retail Moat: Unlike Waaree or Premier (who focus on B2B utility projects), Fujiyama wins in the B2C residential market (Tier-2/3 cities) where margins are better.
- Growth Trigger: The new Ratlam Plant (funded by this IPO) will double capacity. If they execute this well, revenue could double in 2-3 years.
The "Wait" Argument (Why you should be cautious):
- Valuation Discomfort: At a P/E of 45x, the stock is priced for perfection. It is trading at similar multiples to industry leaders (Waaree/Premier) despite being much smaller.
- "Too Good to be True" Growth? The 245% jump in Net Profit in FY25 (just before the IPO) raises eyebrows. Markets often punish companies if this growth turns out to be a one-off pre-IPO window dressing.
- China Risk: Any geopolitical tension or duty hike on Chinese solar cells will hit their margins instantly.

3. Final Strategy

Investor Type	Action	Reason
Allotted Investors	HOLD	Selling at a loss on Day 1 isn't ideal given the sector tailwinds. Hold for at least 2 quarters to see performance.
Fresh Buyers	WAIT	Do not chase the stock. Let the price settle. A better entry point might be around ₹200-₹210 if it corrects further.
Risk Averse	AVOID	Better to stick with established leaders like Tata Power or Waaree Energies until Fujiyama proves its consistency.

Conclusion: Fujiyama is a good business (high ROE, strong brand) but came at a full price. The market has corrected that optimism with a discounted listing. It is now a "Show Me" story—the stock will only perform if the company delivers strong Q3 earnings.

FAQs

1. What was the IPO listing performance and price?

The stock had a muted/discounted debut on November 20, 2025 (as of the current review date).

Issue Price: ₹228
Listing Price (NSE): ₹220 (approx. 3.5% Discount)
Listing Price (BSE): ₹218.40 (approx. 4.2% Discount)

The stock saw a minor recovery post-listing, trading near the issue price, suggesting some value buying after the initial weak opening.

2. Why did the stock list at a discount?

The discount listing (5-7% below the issue price) is primarily attributed to:

Muted Subscription: The IPO was only subscribed approximately 2.21x overall, signaling institutional caution and a lack of "Fear of Missing Out" (FOMO).
Ambitious Valuation: The primary market valuation was considered ambitious (P/E of ~45x), leading large institutional investors (QIBs/NIIs) to book quick profits immediately upon listing.

3. Is the current valuation, trading at a P/E of ~45x (FY25), justified?

The 45x P/E ratio is considered premium compared to the sector average. However, it is largely supported by two key factors:

Exceptional Growth Rate: The market is pricing in the massive 245% profit jump in FY25 as momentum for the future, driven by government incentives.

Visible Capacity Expansion: The planned 5GW Ratlam plant expansion provides a clear, multi-year revenue runway. The valuation will depend heavily on the company's ability to execute this expansion on time.

4. Is the massive 245% profit growth recorded in FY25 sustainable?

The immediate rate of growth (245%) is unlikely to be repeated annually, as it was fueled by specific, temporary high-margin export orders and inventory factors.Sustainability hinges on the successful and timely commissioning of the new Ratlam plant (targeted for H1 FY27). If executed efficiently, future growth is projected to normalize but remain strong (potentially 30-40% annual revenue growth) as new capacity ramps up and achieves economies of scale.