Fujiyama Power IPO: Last day to apply — Should you subscribe? Anil Singhvi decodes Rs 828-crore issue

Fujiyama Power IPO: The Fujiyama Power Systems IPO, which closes today, on November 17, has attracted market attention as the company looks to raise Rs 828 crore through a mix of fresh issue and offer-for-sale.

As subscription figures continue to build, market expert Anil Singhvi has shared his assessment of the IPO, highlighting both the strengths and concerns investors should keep in mind.

Fujiyama Power Systems IPO Subscription Status

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As of the third day of bidding, the IPO had received 42 per cent subscription, with the QIB category at 81 per cent, retail investors at 38 per cent, and non-institutional investors at 16 per cent, in the early market session.

The company has already raised Rs 247 crore from anchor investors and Rs 75 crore in a pre-IPO round, indicating early institutional interest.

Fujiyama Power Systems IPO: Should You Subscribe?

Singhvi notes that one of the biggest positives for Fujiyama Power Systems is its experienced promoter group and strong branding in the solar industry.

The company operates through well-recognised brands such as UTL Solar, which has a legacy of 28 years, and Fujiyama Solar. This long-standing presence has helped the company build significant trust and recall value in the growing rooftop solar segment.

He also highlights the company’s asset-light retail distribution model, which has allowed it to scale quickly without heavy dependence on government tenders.

Around 90 per cent of the company’s revenue comes from dealers and franchise partners, making it a strong B2C player.

Fujiyama Power Systems also benefits from a diversified product mix, including solar panels, batteries, inverters, and hybrid systems, an advantage in a sector witnessing fast-paced growth.

On the financial front, the company has shown a strong growth trajectory, with revenues rising from Rs 664 crore in FY23 to Rs 1,540 crore in FY25, and profit increasing from Rs 24 crore to Rs 156 crore during the same period.

Singhvi sees this growth trend as a key factor supporting the IPO.

However, he also identifies several concerns. The company’s debt has increased sharply by 73 per cent, rising from Rs 200 crore to Rs 346 crore, and it may require additional borrowing to support future expansion.

Valuation is another area of caution: with a P/E of around 35, the IPO appears expensive compared to listed peers. Singhvi also points out the volatility in margins, which jumped from 8 per cent to 16 per cent in two years, and says it remains to be seen whether such improvement is sustainable.

Cash flows have also shown a decline, from Rs 85 crore to Rs 18 crore, a factor he urges investors to watch closely. Additionally, the rooftop solar industry faces intense competition and is heavily dependent on government subsidies, adding another layer of risk.

According to Singhvi, while the company’s strengths make it attractive, low-risk-taking investors may prefer to wait for the listing and observe initial price movement before taking a call.