GP Eco Solutions India Plans Rs 35 Cr IPO

SME renewable energy player GP Eco Solutions India (GPES) is gearing up for an initial public offering (IPO) to raise Rs 30-35 crore. The company plans to list on the NSE Emerge platform, capitalising on the strong investor interest in renewable energy stocks. Recent market entrants like Alpex Solar and Oriana Power have seen their stocks surge dramatically, setting a promising precedent for GPES.

IPO Details and Financial Strategy

Deepak Pandey, Promoter and Managing Director of GPES, outlined the company’s plans for the raised capital. “GP Eco Solar intends to raise capital between Rs 30 crore and Rs 35 crore, subject to approval. The IPO funds will fuel our growth, with Rs 12.45 crore allocated for working capital and expansion, and Rs 7.6 crore will be invested in our subsidiary Invergy India for a new solar inverter assembly facility in Noida. Remaining funds will go towards general corporate purposes,” Pandey stated.

For the nine months ended December 31, 2023, GPES reported revenue of Rs 78.40 crore and a profit after tax (PAT) of Rs 4.73 crore. In the financial year 2022-23 (FY23), the company posted revenue and PAT of Rs 101.21 crore and Rs 3.70 crore, respectively. A significant portion of GPES’s revenues comes from Uttar Pradesh, followed by Haryana, Maharashtra, and Tamil Nadu.

Market Potential and Strategic Positioning

Pandey is optimistic about the company’s future in the rapidly growing renewable sector. “The Indian solar energy landscape is on the cusp of exponential growth, and GPES is strategically positioned to capitalise on this exciting opportunity. By going public, we gain access to the resources necessary to drive innovation and make a significant contribution to India’s sustainable future. The proceeds will allow us to expand our manufacturing capabilities, strengthen our service offerings, and solidify our position as a key player in India’s clean energy transition,” he remarked.

The global solar inverter market, valued at USD 7.7 billion in 2022, is projected to reach $17.9 billion by 2030, with a compound annual growth rate (CAGR) of 8.8 per cent. India's solar power industry is expected to grow even more rapidly, with an estimated CAGR of 34.24 per cent between 2022 and 2027.

Investor Opportunity

Astik Mani Tripathi, Promoter and Director of GPES, highlighted the attractiveness of the IPO. “This IPO presents an attractive opportunity for investors to partake in the growth trajectory of a company well-positioned to thrive in the burgeoning Indian clean energy market,” Tripathi said.

The IPO will consist of a fresh issuance of 32.76 lakh equity shares with a face value of Rs 10 each. Corporate Capital Ventures Private Limited is the book-running lead manager for the issue, while Bigshare Services is the registrar.

Comparisons with Market Leaders

Alpex Solar, listed in February 2024, saw its share price soar nearly 490 per cent to Rs 638.35 from an issue price of Rs 115. Similarly, Oriana Power, which debuted on the stock market in August 2023, experienced an astonishing increase of 1,942 per cent to Rs 2,410.20 against an issue price of Rs 118. GPES aims to replicate this success by leveraging the booming renewable energy market and its strategic growth initiatives.

As GP Eco Solutions India prepares for its IPO, the company is well-poised to tap into the robust demand for renewable energy solutions in India. The proceeds from the IPO will enable GPES to enhance its operational capabilities, expand its market reach, and contribute significantly to the country's clean energy goals. With the backing of strong financials and a strategic growth plan, GPES is set to become a major player in the Indian renewable energy sector, potentially following in the footsteps of successful companies like Alpex Solar and Oriana Power. Investors looking for opportunities in the renewable energy market should keep a close watch on GPES’s upcoming IPO.