The Indian stock market is preparing to welcome a new player in the renewable energy sector as Fujiyama Power Systems gets ready for its highly anticipated stock market debut. The company's initial public offering (IPO) concluded with positive investor sentiment, setting the stage for its listing on Thursday, November 20.
Strong Investor Response Across Categories
The three-day bidding process for Fujiyama Power Systems' mainboard IPO demonstrated solid market confidence. The overall subscription rate reached 2.14 times by the final day of bidding, indicating healthy demand for the company's shares. Breaking down the subscription data reveals interesting patterns across investor categories.
The retail investor quota was fully subscribed, showing strong participation from individual investors. Meanwhile, the Non-Institutional Investors (NII) segment saw 88% subscription. The most impressive response came from Qualified Institutional Buyers (QIBs), who demonstrated robust confidence with their category being subscribed 5.15 times. Employee participation also remained healthy with their quota being booked 1.47 times.
According to BSE data collected by 5:00 PM IST, the company received bids for 5,63,26,595 shares against the total offering of 2,63,47,221 shares available across all categories.
IPO Structure and Grey Market Sentiment
The Fujiyama Power Systems IPO comprised both fresh issuance and offer for sale components. The company raised funds through a fresh issue of equity shares worth ₹600 crore, while promoters offered for sale up to 10 lakh shares valued at approximately ₹228 crore.
Current grey market trends suggest a moderate listing performance for the solar energy company. The Grey Market Premium (GMP) for Fujiyama Power Systems IPO stands at +₹3, according to Investorgain data. This indicates that the shares are currently trading at a premium of ₹3 in the unofficial market.
Based on this GMP, the estimated listing price is projected to be around ₹231 per share, representing a 1.32% increase over the IPO price of ₹228. However, financial experts consistently caution investors that GMP serves only as an initial sentiment indicator and should not form the sole basis for investment decisions.
Company Background and Market Position
Fujiyama Power Systems, headquartered in Greater Noida, has established itself as a significant player in India's growing renewable energy landscape. The company specializes in manufacturing and providing comprehensive rooftop solar solutions, including on-grid, off-grid, and hybrid systems.
The IPO process was managed by Motilal Oswal Investment Advisors Ltd. as the book-running lead manager, with MUFG Intime India Pvt. Ltd. serving as the registrar. The public offering opened for subscription on November 13 and concluded on November 17.
As India continues to push toward its renewable energy targets, companies like Fujiyama Power Systems are positioned to benefit from the increasing focus on sustainable energy solutions. The successful IPO subscription indicates investor confidence in the solar energy sector's growth potential and the company's business model.
