Upcoming IPO: Fujiyama Power Systems refiles DRHP with SEBI to raise funds via fresh issue, OFS

Upcoming IPO: Fujiyama Power Systems Limited refiled its preliminary draft papers with the capital markets regulator Securities and Exchange Board of India (SEBI), to raise funds via an initial public offering (IPO). According to the fresh draft red herring prospectus (DRHP), the upcoming IPO, with a face value of Re 1, is a mix of fresh issue of shares up to ₹600 crore and an offer-for-sale (OFS) of up to 20 million shares by the promoter selling shareholders.

According to the Greater-Noida-based rooftop solar company, the issue includes a reservation for a subscription by eligible employees and a discount is being offered to eligible employees bidding in the employee reservation portion.

Fujiyama Power Systems IPO Details

The upcoming public issue’s OFS consists of shareholders selling shares up to 10 million by Pawan Kumar Garg, and up to 10 million shares by Yogesh Dua. Prior, the company had filed its IPO papers with SEBI on December 28, 2024. 

The company, in consultation with the book running lead manager (BRLMs), may consider an issue of specific securities for an amount of up to ₹120 crore as pre-IPO placement. If the pre-IPO placement is completed, the amount raised under the pre-IPO placement will be reduced from the fresh issue.

The proceeds from the fresh issue to the extent of ₹180 for part financing the cost of establishing the manufacturing facility in Ratlam, Madhya Pradesh, India; ₹275 crore for repayment and/or prepayment of all or a portion of certain outstanding borrowings availed by the company; and general corporate purposes.

The public issue is being made through the book-building process, wherein not more than 50 per cent of the issue is allocated to qualified institutional buyers, and not less than 15 per cent and 35 per cent of the net offer is assigned to non-institutional and retail individual bidders respectively.

Motilal Oswal Investment Advisors Limited, and SBI Capital Markets Limited are the book-running lead managers and MUFG Intime India Private Limited is the registrar of the issue. The equity shares are proposed to be listed on the National Stock Exchange of India Limited and BSE Limited.

Fujiyama Power Systems Company Details

Fujiyama Power Systems, founded in 1996 as UTL Electronics (India), initially operated as a proprietorship before transitioning into a partnership firm in 2008 under the leadership of Promoters Pawan Kumar Garg and Yogesh Dua. 

The company was incorporated in 2017, and its business operations were transferred from the partnership firm in 2018. Over the years, Fujiyama Power Systems has established itself as a leader in the rooftop solar industry, offering comprehensive solutions including on-grid, off-grid, and hybrid solar systems.

The renewable solar company was the first in India to develop an SMT-based inverter with a single card in 2000 and began manufacturing solar power conditioning units (PCUs) in 2012, followed by the online solar PCUs in 2014. 

With a product portfolio spanning solar panels, inverters, lead-acid and lithium-ion batteries, and EV chargers, Fujiyama serves domestic and international markets, including the USA, Bangladesh, and the UAE. Its brands ‘UTL Solar’ and ‘Fujiyama Solar’ are recognized, with a legacy of over 28 years in the industry.

Fujiyama operates three manufacturing facilities located in Greater Noida, Uttar Pradesh; Parwanoo, Himachal Pradesh; and Bawal, Haryana. To meet a higher demand, the company is expanding with a new solar panel manufacturing facility in Dadri, Uttar Pradesh, and additional production lines in Greater Noida. 

The firm’s in-house R&D capabilities drive constant innovation, leading to the development of over 500 SKUs. These include solar inverters, panels, batteries, hybrid solar systems, and more, ensuring that customers do not need to rely on other OEMs.

The company is primarily a B2C company and has built a distribution network across India, comprising more than 480 distributors, 3,600 dealers, and 1,000 exclusive UTL Solar “Shoppe” franchisees. A team of over 400 service engineers providing maintenance service and technical support to customers. 

Fujiyama has implemented AI-powered digital marketing strategies and a referral program that allows customers to earn UTL credits, redeemable for product upgrades or services. The company’s innovations include Rapid Maximum Power Point Tracking (rMPPT) technology for maximizing energy output in variable conditions and hybrid solar systems that combine backup power with grid energy export. It has introduced chargers for electric three-wheeler autorickshaws and continues to innovate in the EV segment.

Over the last three financial years and six months ending September 30, 2024, the company sold 12,25,195 (458.14 MW) solar panels, 631,331 (1,065.83 MW) solar inverters, and 852,757 (1672.17 MWh) batteries, contributing to over 1 GW+ of off-grid, on-grid, and hybrid solar rooftop installations across India. 

The company’s revenue from operations increased by 39.24 per cent from ₹664.08 crore in FY23 to ₹924.69 crore in FY24, primarily due to an increase in sale of its solar products and rendering of services. Net profit increased by 85.93 per cent from ₹24.37 crore in FY23 to ₹45.30 crore in FY24. For the six months ended September 30, 2024, revenue from operations stood at ₹721.74 crore, and profit after tax stood at ₹75.09 crore.

Fujiyama Power Systems is a manufacturer of products and solution provider in the roof-top solar industry, including on-grid, off-grid and hybrid solar systems. The company has built a brand recall and reputation in the industry through its brands ‘UTL Solar’, which has a legacy of 28 years, and Fujiyama Solar.

It has developed three manufacturing facilities and R&D capabilities domestically, with a consistent focus on technological development and product innovation.

In the last three financial years and six months ended September 30, 2024, Fujiyama Power Systems have sold 12.25 lakh solar panels (458.14 MW), 6.31 lakh solar inverters (1,065.83 MW), and 8.52 lakh batteries (1,672.17 MWh).

The firm is also in the process of developing a new facility for manufacturing solar panels in Dadri, Uttar Pradesh and installing another inverter line at its Greater Noida facility.

For the six months ended September, Fujiyama clocked a net profit of ₹75.1 crore against revenue of ₹721.7 crore.

Motilal Oswal Investment Advisors Ltd and SBI Capital Markets Ltd are the book-running lead managers, while Link Intime India Pvt Ltd is the registrar of the issue.

The shares of the company are proposed to be listed on the National Stock Exchange (NSE) and BSE.