Fujiyama Power Systems

• Fujiyama Power Systems is coming out with a 100% book building; initial public offering (IPO) of 3,77,77,777 shares of 1 each in a price band Rs 216-228 per equity share. 
• Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
• The issue will open for subscription on November 13, 2025 and will close on November 17, 2025.
• The shares will be listed on BSE as well as NSE.
• The face value of the share is Rs 1 and is priced 216.00 times of its face value on the lower side and 228.00 times on the higher side.
• Book running lead managers to the issue are Motilal Oswal Investment Advisor and SBI Capital Markets. 
• Compliance Officer for the issue is Mayuri Gupta.

Profile of the company

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 strives to excel in solar panel manufacturing, solar inverter manufacturing (covering on-grid, hybrid, and off-grid solutions), and both lead acid and lithium-ion battery production. Additionally, it supports robust R&D capabilities in inverter technology and provide a wide variety of solar SKUs, distinguishing the company as a well-rounded leader in the industry. The company has built a brand recall and reputation in the industry through its brands ‘UTL Solar’, which has a legacy of 29 years, and ‘Fujiyama Solar’. The company has developed four manufacturing facilities and R&D capabilities domestically, and with a consistent focus on technological development and product innovation, it has a track record of being one of the few companies in India to develop Online UPS with single card, Combo UPS along with automatic voltage regulation (AVR), high frequency online UPS and single card surface mount technology (SMT) inverter in India.

The company has created a complete ecosystem in the roof top solar industry. The company seamlessly integrate innovation, manufacturing, distribution and customer service, guided by market research, customer feedback and R&D to deliver reliable solar energy solutions. Its extensive distribution network including UTL Shoppe ensure widespread accessibility and empower local entrepreneurs to drive renewable energy adoption. Its comprehensive services such an installation, subsidy assistance, training of its dealers and technicians and post-sales support aim to ensure complete customer satisfaction. In the last three financial years and three months period ended June 30, 2025, it has sold 1,727,114 (757.37MW) solar panels, 662,393 (1,544.09 MW) solar inverters and 925,776 (1,875.10 MWh) batteries and contributed to over 1 GW+ of off-grid, on-grid, and hybrid solar rooftop installations across India.

The company has a comprehensive product portfolio in roof-top solar segment. It offers an extensive range of products including solar PCUs, solar off-grid, on-grid and hybrid inverters, solar panels, pulse width modulation (PWM) chargers and other battery chargers, lithium-ion and tubular batteries, online uninterruptible power supply systems, offline UPS systems, solar management units and solar charge controllers, among others which provides value-for-money to its customers. Further, in the EV segment, it specifically provides chargers for three-wheeler electric autorickshaws (E-Rickshaws) and lithium-ion batteries. With various combinations, it offers over 522 SKUs which can be tailored to meet the specific preferences and requirements of the customer and their location, for example its hybrid charge controller units are engineered to efficiently run direct current (DC) loads, such as with telecom equipment, and its off-grid inverters are designed for regions with limited or no access to grid power and are ideal for remote areas.

Proceed is being used for:

• Part financing the cost of establishing the manufacturing facility in Ratlam, Madhya Pradesh
• Repayment and/ or prepayment of all or a portion of certain outstanding borrowings availed by the company
• General corporate purposes

Industry Overview

India, with an installed solar capacity of 102 GW in 2024, is rapidly advancing toward its goal of 300 GW by 2030, driven by initiatives like the National Solar Mission and the Renewable Energy Development Program. The government's Production Linked Incentive (PLI) scheme supports domestic solar manufacturing, reducing dependence on imports. India’s abundant solar resources fuel growth in utility-scale projects and rooftop installations, aided by falling costs and subsidies like the Rooftop Solar Scheme Phase II, PM-KUSUM, PM Surya Ghar-Muft Bijli yojna, solar park development, and the National Wind-Solar Hybrid Policy that have laid a strong foundation for this transformation. India’s leadership in global initiatives, such as the International Solar Alliance (ISA), underscores its role in promoting solar energy globally. With strong policy support and growing domestic and international demand, India is set to shape the future of global solar energy.

India's power sector is undergoing a transformation with a focus on increased capacity and clean energy. Government initiatives like the Basic Customs Duty (BCD) on imported solar modules and the Production-Linked Incentive (PLI) scheme are boosting domestic manufacturing, driving solar capacity growth. By FY32, solar is expected to dominate the energy mix, increasing its share from 22% in FY25 to 40%, with capacity rising from 106 GW to 365 GW. Wind power will also grow significantly from 50 GW to 122 GW. This growth is supported by large-scale solar projects, policy initiatives, and a push to reduce reliance on thermal power, aligning with India’s renewable energy targets.

Over the last five years, rooftop solar emerged as instrumental in driving global installed PV capacity growth, with its contribution rising from 37 GW (36% share) in 2018 to 105 GW (~47% share) in 2022. Rooftop systems scaled rapidly, accounting for nearly half of annual installations by 2022, underscoring their role as a key growth engine in the global shift from utility-dominated solar towards more decentralised, distributed capacity additions. India's rooftop solar PV capacity is set to witness good growth, backed by Government policies, increasing awareness in the residential and C&I segment. The MNRE’s Phase II Rooftop Solar Programme, launched in March 2019 with an outlay of Rs. 11,814 crores, provides financial assistance of up to 60% for residential grid-connected systems. The scheme also incentivizes DISCOMs for additional capacity. By FY24, cumulative capacity additions reached around 12 GW, with the segment expected to reach 90-100 GW by FY30, in line with India's goal of 500 GW of renewable energy by 2030. 

Pros and strengths

Diversified portfolio of solar products: The company is a prominent Indian company that specializes in providing solar energy solutions. It has an extensive product portfolio offering a comprehensive suite of products in the roof-top solar segment. It offers an extensive range of products including solar PCUs, solar off-grid, on-grid and hybrid inverters, solar panels, battery chargers, lithium-ion and tubular batteries, online UPS systems, offline UPS systems, solar management units and solar charge controllers, among others which provides value-for-money to its customers. Further, in the EV segment, it specifically provides chargers for E-Rickshaws and lithium-ion batteries. It offers over 522 SKUs which can be tailored to meet the specific preference and requirements of the customer and the geographical location which reduces dependency on any single product category, ensuring resilience against market fluctuations and steady revenue growth. 

Track record of technological development and product innovation: With more than 29 years of experience, more than 65 R&D professionals and more than 500 qualified engineers, as on June 30, 2025, the company has a proven track record of being an early adopter of innovative technology, implementing manufacturing processes that align with global best practices to enhance efficiency and product quality. It strives to pioneer innovative adoption of solar energy solutions. It has a track record of being one of the few companies in India to develop Online UPS with single card, Combo UPS along with AVR, High Frequency Online UPS and single card SMT Inverter in India. The company began manufacturing solar PCU in 2012 whereas online solar PCUs in 2014. The company is first Indian company to develop SMT inverter with single card in the year 2000.

Robust distribution network: The company has established a strong and widespread sales and distribution network, enabling it to reach a diverse customer base throughout the country. This robust network includes distributors, dealers and exclusive franchisee ‘Shoppes’. As on June 30, 2025, the company has 725 distributors, 5,546 dealers and 602 service engineers who travel throughout the country to serve its customers. It also offers its products in 1,100 exclusive “Shoppe”. In its exclusive UTL Solar ‘Shoppe’ franchise network in Indian cities, its customers are educated on selecting the right rooftop system and components from a single source, ensuring seamless procurement and professional installation. The Shoppe engineers and sales collection managers prior to their deployment are trained by its teams through its channel network.

Quality-centric and precision-driven large scale manufacturing infrastructure: The company operates four advanced in-house manufacturing facilities across the country. As of Fiscal 2025, its Greater Noida Facility has an available installed capacity of manufacturing 656,547 solar panels, 387,504 solar inverters and UPS, 309,504 e-Rickshaw chargers and 7,488 lithium-ion batteries. Its Parwanoo Facility has an available installed capacity of manufacturing 51,917 solar PCUs and UPS (in Fiscal 2025). Its Bawal Facility has an available installed capacity of manufacturing 439,296 tubular batteries and 195,669 solar panels (in Fiscal 2025) and its Dadri Facility, which has been commissioned on March 23, 2025, has an available installed capacity of manufacturing 20,060 solar panels (in Fiscal 2025) which is further augmented by addition of another solar panel production line on October 1, 2025 and its proposed addition of solar cell production line by January 2026. These streamlined production systems are certified under ISO 9001:2015 (Quality Management), ISO 14001:2015 (Environmental Management), and ISO 45001:2018 (Occupational Health and Safety). Its manufacturing setup at Greater Noida has also been preferred by the Ministry of New and Renewable Energy (MNRE) for training members of the International Solar Alliance.

Risks and concerns

Dependence on limited geographic region for manufacturing: All of the company’s existing manufacturing facilities are located in northern India, specifically in Parwanoo (Himachal Pradesh), Greater Noida (Uttar Pradesh), Bawal (Haryana) and Dadri (Uttar Pradesh). Due to this geographic concentration, its operations are vulnerable to region-specific risks and disruptions, including but not limited to: Political or social unrest, such as protests, strikes, or regional agitations; Natural disasters, including floods, earthquakes, or extreme weather conditions; Local infrastructure disruptions (transport, power, water, logistics); Regulatory changes or local government actions; and Regional labour shortages or disruptions. Any adverse developments in the region may lead to disruptions in manufacturing, delays in shipment, increased operational costs, or damage to facilities. These factors could materially and adversely affect its production schedules, customer commitments, and overall business performance.

Exposure to import duties and international trade risks: The company imports a significant part of its raw material supply from China and it imports equipment and machinery from other foreign countries and the same is subject to certain risks. Restrictions on or import duties relating to materials and equipment imported for its manufacturing operations as well as restrictions on or import duties levied on its products in its export markets may adversely affect its business prospects, financial performance and cash flows.

Regional revenue concentration and expansion challenges: The company derived a substantial portion of its retail sales from Uttar Pradesh and is in the process of expanding its retail network to target new customers. The company has garnered 35.61%, 32.74% and 32.74% of its total revenue from Uttar Pradesh in FY25, FY24 and FY23 respectively. Any adverse change in the demand of its products in Uttar Pradesh or failure to expand into new markets may have an adverse impact on its business, growth, financial condition, cash flows and results of operations.

Significant amount of working capital require: The company’s business requires a significant amount of working capital as there is considerable time lag between purchase of raw materials and realisation from sale of its finished goods. Thus, the company required to maintain sufficient stock to meet manufacturing requirements affecting its working capital requirements. Consequently, there could be situations where the total funds available to it may not be sufficient to fulfil its commitments, and hence it may be required to incur additional indebtedness or utilize internal accruals to meet its working capital requirements. The company’s inability to meet the working capital requirements may have an adverse effect on its results of operations.

Outlook

Fujiyama Power Systems manufactures products and provides solutions in the rooftop solar industry, including on-grid, off-grid, and hybrid solar systems. The company has robust distribution network, and post-sale service capabilities driving strong brand recognition. The company has quality-centric and precision-driven large-scale manufacturing infrastructure driving production efficiency. On the concern side, the company derived a substantial portion of its retail sales from Uttar Pradesh and is in the process of expanding its retail network to target new customers. Any adverse change in the demand of its products in Uttar Pradesh or failure to expand into new markets may have an adverse impact on its business, growth, financial condition, cash flows and results of operations. Moreover, geographical concentration of the company’s manufacturing facilities in northern India exposes it to region specific risks that could adversely affect its business, financial condition, results of operations, and cash flows.

The issue has been offering 3,77,77,777 shares in a price band of Rs 216-228 per equity share. The aggregate size of the offer is around Rs 816.00 crore to Rs 861.33 crore based on lower and upper price band respectively. Minimum application is to be made for 65 shares and in multiples thereon, thereafter. On performance front, revenue from operations increased by 66.62% from Rs 9,246.88 million for Fiscal 2024 to Rs 15,406.77 million for Fiscal 2025, primarily due to an increase in sale of its solar products and rendering of services. Moreover, restated profit for the year increased significantly by 245.09% from Rs 453.03 million in Fiscal 2024 to Rs 1563.35 million in Fiscal 2025.

In a bid to continue to maintain its market position in the domestic solar panel, solar inverter and battery manufacturing, it is constantly evaluating opportunities to strategically grow its operations. The company has continuously upgraded its existing facilities’ installed manufacturing capacity. Moreover, it plans to use the Offer Proceeds for establishing an integrated project in Ratlam, Madhya Pradesh which will more than double its current manufacturing capacity and will help it to meet the growing demand from West and South India. This proposed expansion will grow its manufacturing capacity of lithium-ion batteries by 2,000 MWh, and of solar panels and solar inverters by 2,000 MW each. Going forward, the company is focusing its growth particularly in the southern and western regions, where it aims to engage more distributors and establish exclusive retail outlets to strengthen its brand presence. Through this strategic expansion, it is positioning itself for more balanced growth, reducing the risk associated with market fluctuations, and enhancing its overall market footprint.