Fujiyama Power Systems IPO Opens With Zero GMP, Strong Anchors, and High Expectations

Fujiyama Power Systems Ltd, a rapidly growing player in India’s rooftop solar and power electronics sector, has opened its ₹828 crore Initial Public Offering (IPO) — but despite strong financials and anchor participation, the issue has entered the market with a flat Grey Market Premium (GMP) of ₹0. This unusual contrast between business strength and muted market sentiment has become one of the most discussed aspects of this IPO.

The issue opened for subscription on 13 November 2025 and will close on 17 November 2025. Shares are priced within a ₹216–₹228 band, with a minimum lot size of 65 shares. The IPO includes a fresh issue of around ₹600 crore and an Offer-for-Sale (OFS) of nearly ₹228 crore. A day before opening, the company successfully raised ₹247 crore from anchor investors, indicating strong institutional confidence even as the retail market remains cautious.

Zero GMP: What It Means for Investors

The IPO debuting with a GMP of ₹0 signals that there is currently no premium or discount in the informal market. Analysts note that this neutral GMP reflects:

• Volatility in the renewable energy and infrastructure sector
• A stretched valuation relative to industry averages
• Recent market corrections affecting investor risk appetite

However, many brokerages still recommend a “Subscribe for Long Term”, citing the company’s financial momentum and sector tailwinds. Analysts argue that while listing gains may be limited, Fujiyama’s fundamentals make it attractive for patient investors.

Strong Financial Performance

Fujiyama Power Systems has demonstrated remarkable growth over the past two financial years. The company operates widely under the brands UTL Solar and Fujiyama Solar, offering rooftop solar panels, hybrid inverters, lithium batteries, and off-grid systems.

Key financial highlights include:

• FY25 Revenue: ₹1,540.68 crore (up sharply from ₹664.08 crore in FY23)
• FY25 Net Profit: ₹156.34 crore (vs ₹24.36 crore in FY23)
• Consistent growth in consumer electronics and renewable solutions

Industry experts point to rising rooftop solar adoption, government subsidies, and increased commercial renewable usage as key catalysts supporting Fujiyama's growth.

Fund Deployment Strategy

The company plans to deploy IPO proceeds toward:

• Establishing a new manufacturing plant in Ratlam, Madhya Pradesh, aimed at expanding solar and inverter production capacity
• Debt reduction, strengthening the balance sheet
• Increasing working capital to support growing demand
• Modernising R&D and customer service infrastructure

The manufacturing expansion is expected to significantly boost supply capabilities, helping the company meet rising domestic and export demand.

IPO Subscription and Market Response

On Day 1, subscription figures indicated a cautious but steady response. Retail participation showed moderate interest, while institutional investors appeared more confident due to the anchor allocation.

Market watchers note that the zero GMP has discouraged short-term investors, especially those seeking quick listing gains. However, long-term investors remain optimistic due to:

• Growth potential of India’s rooftop solar market
• Company’s expanding product ecosystem
• Rising demand for affordable clean-energy solutions

Strengths & Risks

Strengths:

• Rapid revenue and profit growth
• Strong presence in both budget and mid-range solar products
• Established distribution network under two trusted brands
• Beneficiary of the government’s renewable energy push

Risks:

• Dependence on raw material imports (exposure to global price fluctuations)
• Competitive pressure in solar/inverter markets
• High valuation could limit near-term returns
• Slower-than-expected renewable adoption could impact projections

Final Outlook

Despite a zero GMP, Fujiyama Power Systems’ IPO remains one of the more significant renewable-sector offerings of the year. Analysts believe its long-term prospects outweigh short-term uncertainties. While listing gains may be minimal, the company’s strong revenue growth, expanding production plans, and increasing rooftop solar demand position it well for sustained future performance.

For investors seeking stable, long-term exposure to India’s clean-energy transition, this IPO may still be worth considering, provided they are comfortable with potential initial volatility.