Fujiyama Power Systems, a prominent manufacturer of solar inverters, panels, and batteries, experienced a subdued entry into the domestic stock market today. The company had issued its shares at a price of ₹228 per share through its Initial Public Offering (IPO), but investors were met with disappointment right from the listing. On its very first day of trading, the company's shares failed to 'charge' investor portfolios, instead inflicting a loss of approximately 8, while 62%, closing at ₹208. 35.
Subdued Market Debut and Trading Performance
Fujiyama Power Systems shares made their debut on the Bombay Stock Exchange (BSE) at ₹218, while 40 and on the National Stock Exchange (NSE) at ₹220. 00. Both listing prices represented a discount of nearly 4% from the IPO issue price of ₹228. This meant that IPO investors didn't receive any listing gains; instead, they experienced an immediate reduction in their capital. Following the listing, the shares attempted a brief recovery, climbing to a high of ₹231. 00 on the BSE, while however, this upward movement was short-lived, as intense profit-booking pressure pushed the stock down to an intraday low of ₹205. 35, while by the end of the trading day, Fujiyama Power Systems shares closed at ₹208. 35, resulting in a total loss of 8. 62% for IPO investors on their inaugural trading day.
Mixed Investor Response to IPO
The Fujiyama Power Systems IPO, valued at ₹828. 00 crore, was open for subscription from November 13 to November 17. The IPO received a mixed response from investors, with an overall subscription rate of 2. 21 times. The response across various investor categories also fell short of full subscription, while the portion reserved for Qualified Institutional Buyers (QIBs) was subscribed 5. 24 times (excluding anchor investors), while the Non-Institutional Investors (NIIs) portion was subscribed only 0. 92 times. Retail investors subscribed 1. 05 times, and the employee portion was subscribed 1. 55 times. This indicates that the IPO wasn't fully subscribed in all categories,. Signaling a lukewarm sentiment among investors even before the shares hit the market.
Utilization of IPO Proceeds
The Fujiyama Power Systems IPO comprised a fresh issue of ₹600 crore and an Offer for Sale (OFS) of 1 crore equity shares, each with a face value of ₹1. The funds generated from the Offer for Sale component were received by the selling shareholders. As for the ₹600 crore raised through the fresh issue, ₹180. 00 crore is earmarked for capital expenditure related to the manufacturing facility in Ratlam, Madhya Pradesh. On top of that, ₹275. 00 crore is designated for debt reduction, a strategic move aimed at strengthening the company's balance sheet. The remaining capital will be utilized for general corporate purposes, which typically encompass working capital requirements, marketing initiatives, and other operational expenses to support the company's growth.
About Fujiyama Power Systems
Established in 2017, Fujiyama Power Systems operates in the rooftop solar industry, manufacturing a diverse range of products. Its product portfolio includes comprehensive solutions such as on-grid, off-grid, and hybrid solar systems. Key products offered by the company include solar inverters, panels, and batteries, collectively forming an extensive range of 522 Stock Keeping Units (SKUs). Fujiyama Power Systems boasts four manufacturing facilities across India: two located in Uttar Pradesh, one in Himachal Pradesh, and another in Haryana. The company's market reach extends beyond the domestic Indian market, as it also exports its products to international destinations such as the USA, Bangladesh, and the UAE, underscoring its growing global presence.
Strong Financial Health and Growth
The company has demonstrated consistent and strong financial health, reflecting a strong growth trajectory. In Fiscal Year 2023, Fujiyama Power Systems reported a net profit of ₹24. 37 crore, which subsequently grew to ₹45. 30 crore in FY2024, and saw a significant leap to ₹156. 34 crore in FY2025, while during this period, the company's total income reached ₹1,550. 09 crore in FY2025, growing at an impressive Compound Annual Growth Rate (CAGR) of over 52%. For the most recent financial update, the first quarter of FY2026 (April-June 2025) saw the company achieve a net profit of ₹67. 59 crore and a total income of ₹597, while 79 crore. As of the end of the June 2025 quarter, the company had a total debt of ₹432, while 83 crore, balanced by healthy reserves and surplus amounting to ₹436. 33 crore, indicating a stable financial position.
Despite the disappointing listing performance, Fujiyama Power Systems' strong financial fundamentals and its expanding presence in the solar industry offer a glimmer of hope for the future. However, investors will need to closely monitor the company's performance and the effective utilization of the IPO funds to ensure that their portfolios are truly 'charged' in the long run, navigating the competitive landscape of the renewable energy sector.
