Himalayan Solar IPO

India’s peak power demand reached a record 250 GW in May 2024, driven by economic growth, rising electricity consumption and expanding electrification.  

India ranks 4th globally in installed renewable energy and solar power capacity. Installed renewable energy capacity grew at a 15.32% CAGR between FY16 and FY24, reaching 143.64 GW as of March 2024.  

Non-fossil sources accounted for 43.28% of India’s total installed power capacity as of April 2024. Solar accounted for 53.4% of non-hydro renewable capacity, followed by wind at 34.1%.  

India’s solar capacity increased from 1.60 GW in 2013 to 81.81 GW in April 2024, representing a 26-fold increase over the period.  

India’s total electricity generation capacity is projected to rise from 399.5 GW in 2022 to around 849 GW by 2032, with solar’s share in the generation mix expected to increase from 5% to 25%.  

Solar capacity is projected to increase from 66.78 GW in 2023 to 364.6 GW by 2032.  

Under the Panchamrit framework, India aims to achieve 500 GW of non-fossil fuel capacity by 2030, including 280 GW of solar and 140 GW of wind capacity, while meeting 50% of its energy requirements from renewable sources.  

India has also targeted a net-zero emissions goal by 2070 and plans to reduce projected carbon emissions by 1 billion tonnes.  

India may require $190–$215 billion in renewable energy investment over seven years to achieve the 500 GW target, along with another $150–$170 billion for transmission, distribution and energy storage.  

India has an estimated 900 GW of commercially exploitable renewable energy potential, including around 750 GW of solar potential.  

Government initiatives such as the PLI scheme, with an allocation of ₹24,000 crore, are aimed at expanding domestic manufacturing of high-efficiency solar PV modules. Under Tranche-II, ₹19,500 crore was allocated for 39,600 MW of integrated module manufacturing capacity.  

PM-KUSUM targets the addition of 30.8 GW of solar capacity by March 2026, while the Pradhan Mantri Suryodaya Yojana aims to provide rooftop solar systems to 10 million households.  

The Grid-Connected Solar Rooftop Programme Phase-II targets 40,000 MW of rooftop capacity, supported by central financial assistance.  

Around $35 billion (₹2.8 lakh crore) has been announced for upgrading the inter-state transmission network to support renewable energy evacuation.  

The sector also benefits from 100% FDI through the automatic route, Renewable Purchase Obligations, Green Energy Open Access rules and Renewable Energy Certificate mechanisms.  

Solar PV manufacturing is shifting from polycrystalline technology towards higher-efficiency Mono-PERC and TOPCon bifacial modules.  

Revised efficiency standards issued by the Ministry of New and Renewable Energy (MNRE) have increased the focus on high-efficiency modules, making Mono-PERC and TOPCon increasingly preferred for government projects and major EPC contracts. 

Manufacturing Expansion: Invest up to ₹12.98 crore to expand the Karnal facility’s manufacturing capacity from 60 MW to 160 MW for Mono-PERC and TOPCon bifacial modules. 

Working Capital: Allocate up to ₹24.59 crore towards raw material procurement and the execution of the ₹186.10 crore order book. 

Debt Repayment: Use up to ₹2.60 crore to prepay the ICICI Bank term loan and reduce finance costs. 

General Corporate Purposes: Utilise the remaining proceeds, subject to applicable limits, for general corporate purposes and expenses related to the listing on NSE EMERGE. 

Solar Manufacturing Experience: Himalayan Solar Limited has over six years of manufacturing experience, including operations at its 40 MW polycrystalline PV module facility in Panchkula. The company was ranked among the top 10 Solar PV Module Manufacturers in 2021 by Industry Outlook magazine and received the “Best Industrial and Commercial Solar Company” award from Industrial Review Magazine.  

Experienced Management Team: The company is led by Mr. Manjeet Singh, Managing Director and first-generation technopreneur with around 10 years of experience in the electrical and solar sectors, along with Mr. Mehtab Singh, Whole-time Director and former Indian Naval officer.  

Presence in Government Solar Projects: Himalayan Solar is an empanelled solar partner with state agencies including HAREDA, PEDA, MSEDCL/MEDA, RHDS and MPUVN. The company has deployed more than 61,000 HP of Solar Water Pumping Systems under government projects, including the MNRE PM-KUSUM Scheme.  

Government-Focused Order Book: As of July/August 2025, the company had an unexecuted order book worth ₹18,609.64 lakhs, with the entire order book comprising public sector and government contracts.  

Integrated EPC Capabilities: The company handles various stages of solar project execution, including system design, structural fabrication, module supply, installation, testing and remote telemetry setup. It also sells submersible water pumps and pump controllers under the Himalayan Solar brand through OEM arrangements.  

Quality Certifications: The company holds ISO 9001:2015 and ISO 14001:2015 certifications and has product testing accreditations under BIS, IEC and IS standards for its solar modules, LiFePO4 batteries and pump controllers.  

Shift to Higher-Efficiency Modules: The company has established a 60 MW production line for 16 Busbar Mono-PERC modules at its Karnal facility. It plans to invest ₹1,298.30 lakhs from IPO proceeds to expand total manufacturing capacity to 160 MW, with capabilities for 20–25 Busbar Mono-PERC and TOPCon Glass-to-Glass bifacial modules.  

PM-KUSUM and Solar Policy Opportunities: The company can benefit from government-led renewable energy programmes, including PM-KUSUM, which targets 30.8 GW of solar capacity in agriculture, the Pradhan Mantri Suryodaya Yojana, which targets rooftop solar for 10 million households, and India's broader target of 280 GW of solar capacity by 2030.  

Expansion into New States: While Haryana has historically contributed a large share of the company's revenue, Himalayan Solar has expanded its operations into Maharashtra, Punjab and Uttar Pradesh, including projects involving MSEDCL/MEDA and PEDA.  

Resumption of Third-Party Module Sales: The company had temporarily stopped direct third-party module sales after halting production at its Panchkula facility in August 2024. The new Karnal facility is expected to support the resumption of module sales to commercial, industrial and retail customers.  

Smart Solar and Hybrid Solutions: The company has opportunities to expand the use of Remote Monitoring Systems, IoT/GSM-enabled controllers and hybrid storage solutions. These technologies can support remote monitoring, water discharge tracking and automated compliance for solar water pumping projects. 

High Working Capital Requirements: The company operates with extended receivables cycles, with collection days increasing to 170 days in FY 2024–25, compared with 107 days in FY 2023–24 and 91 days in FY 2022–23. Government payment processes under schemes such as PM-KUSUM require systems to remain operational and undergo remote monitoring verification before final payments are released.  

High Customer Concentration: The company depends heavily on a limited number of public sector customers. In FY 2024–25, its top customer contributed 85.15% of operational revenue, while the top five customers accounted for 99.93%.  

Geographical Concentration: Haryana contributed 86.15% of domestic operational revenue in FY 2024–25, exposing the company to concentration risk in a single state.  

Transition to New Manufacturing Facility: Production of polycrystalline modules at the Panchkula facility was halted in August 2024 as the company shifted towards newer technologies. The transition to the Karnal facility and its planned capacity expansion could involve commissioning delays, execution challenges and additional costs.  

Supplier Concentration: The top five suppliers accounted for 89.36% of total purchases in FY 2024–25. The company also does not have long-term supply agreements with raw material suppliers, leaving it exposed to supply disruptions and changes in input prices.  

Past Negative Operating Cash Flow: The company reported negative net cash flow from operating activities of ₹555.31 lakhs in FY 2023–24, indicating pressure on cash generation from operations during the period.  

Unsecured Director Loan: As of March 31, 2025, the company had ₹359.00 lakhs of unsecured loans from a director, which are repayable on demand and could create liquidity pressure if repayment is sought.  

Legal and Compliance Matters: The company and its officers have certain pending legal proceedings. Its DRHP also highlights historical instances of delayed statutory filings and other compliance-related matters.  

Dependence on Government Schemes: A significant portion of the company's business is linked to government renewable energy programmes, particularly Component-B of the MNRE PM-KUSUM Scheme. Changes, delays or reductions in subsidies and government programmes could affect demand and order inflows.  

Government Project Execution Risks: The company's order book is largely made up of government contracts. Administrative approvals, site availability, project scope changes and other execution-related issues could delay project completion and revenue recognition.  

Tender-Based Pricing Pressure: Government contracts are generally awarded through competitive bidding. Fixed-price contracts without adequate price escalation provisions can put pressure on margins when raw material costs increase.  

Intense Industry Competition: The Indian solar EPC and manufacturing industry includes local manufacturers as well as large, vertically integrated players. Competition can put pressure on tender prices and operating margins.  

Rapid Technology Changes: Solar technology continues to evolve from polycrystalline modules to Mono-PERC, 16BB, 25BB and TOPCon bifacial modules. Companies need to regularly upgrade their manufacturing capabilities to meet changing technical requirements.  

Weather and Seasonal Risks: Solar installations can be affected by weather conditions, particularly during the monsoon season. Agricultural cycles and peak harvesting periods can also delay installations and extend project execution and working capital cycles. 

Himalayan Solar IPO DRHP 

Finshore Management Services Limited 

Contact Number: 011-45121795 

Email Address: ipo@maashitla.com