Fujiyama Power Systems Limited is making waves as it prepares for its upcoming initial public offering (IPO). The company has recently submitted its revised preliminary draft to the Securities and Exchange Board of India (SEBI), aiming to raise significant funds through this public offering. With a nominal value of Re 1 per share, the IPO is structured to include a fresh issue of shares worth up to ₹600 crore, coupled with an offer-for-sale (OFS) of 20 million shares from its promoters.

IPO Structure and Key Details

Fujiyama’s IPO will feature a unique blend of fresh shares and a sale of existing shares by its promoters. The details are as follows:

• Fresh issue: Up to ₹600 crore
• OFS: 20 million shares, which includes:
  • 10 million shares from Pawan Kumar Garg
  • 10 million shares from Yogesh Dua
• Pre-IPO Placement: The company may consider raising up to ₹120 crore through pre-IPO placement.

The funds raised will play a crucial role in financing the establishment of a new manufacturing facility in Ratlam, Madhya Pradesh, repaying outstanding debts, and supporting general corporate expenses. The company has set aside a portion of the IPO for its employees, offering them a reservation and discounts on shares.

Investment Allocation and Management

The IPO will follow a book-building process, ensuring that:

• Qualified Institutional Buyers (QIBs) receive no more than 50% of the total issue.
• Non-Institutional Investors are allocated a minimum of 15%.
• Retail Investors will be offered 35% of the net offer.

Motilal Oswal Investment Advisors and SBI Capital Markets are serving as the book-running lead managers, while MUFG Intime India Private Limited will handle the registration of the issue. The shares are expected to be listed on both the National Stock Exchange of India and BSE Limited.

Company Background and Achievements

Founded in 1996 as UTL Electronics (India), Fujiyama Power Systems has evolved into a key player in the rooftop solar market. Initially a proprietorship, it transitioned to a partnership in 2008 under the vision of its founders, Pawan Kumar Garg and Yogesh Dua. The company was incorporated in 2017, and its operations officially began in 2018.

Fujiyama has been at the forefront of solar technology innovations, being the first in India to create an SMT-based inverter in 2000. The company’s extensive product range includes solar panels, inverters, batteries, and EV chargers, serving both domestic and international markets, including the USA, Bangladesh, and the UAE.

Manufacturing and Distribution Network

With manufacturing facilities strategically located in Greater Noida, Parwanoo, and Bawal, Fujiyama is expanding its capacity by establishing a new facility in Dadri, Uttar Pradesh. The company boasts robust in-house research and development, enabling it to produce over 500 SKUs, including solar inverters and hybrid systems.

Fujiyama primarily operates in the B2C sector, maintaining a vast distribution network that encompasses:

• Over 480 distributors
• Approximately 3,600 dealers
• 1,000 exclusive UTL Solar franchisees

The company is supported by a dedicated team of 400 service engineers, ensuring high-quality customer service and technical support.

Financial Performance

Fujiyama Power Systems has shown remarkable growth over the past few years. From September 30, 2024, the company reported:

• Revenue: Increased by 39.24% from ₹664.08 crore in FY23 to ₹924.69 crore in FY24.
• Net Profit: Rose by 85.93% from ₹24.37 crore in FY23 to ₹45.30 crore in FY24.

During the first half of FY24, the revenue reached ₹721.74 crore, with a profit after tax of ₹75.09 crore.

With these promising figures and an innovative approach to solar energy solutions, Fujiyama Power Systems is poised to make a significant impact in the renewable energy landscape as it moves forward with its IPO plans.