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03 August 2023

Oriana Power Limited IPO: Illuminating a Greener Future with Solar Energy Solutions

Introduction:

Established in 2013, Oriana Power Limited is a dynamic player in the solar energy industry, offering innovative solar energy solutions to both industrial and commercial customers. Driven by a vision to promote sustainable and renewable energy sources, the company specialises in providing high-quality solar energy solutions that contribute to a more environmentally friendly future.

Oriana Power's Commitment to Sustainability:

Oriana Power focuses on delivering low-carbon energy solutions to its clients. Its offerings include the installation of on-site solar projects such as rooftop and ground-mounted systems, as well as off-site solar farms through open access arrangements. By harnessing the power of solar energy, the company enables individuals and organizations to reduce their carbon footprint and transition towards cleaner energy alternatives.

Operational Segments:

Oriana Power's operations are categorized into two main segments

1. Capital Expenditure (CAPEX): In this segment, the company undertakes the end-to-end process of solar project development, which includes engineering, procurement, construction, and operation of solar installations.
2. Renewable Energy Service Company (RESCO): Oriana Power adopts the RESCO model, offering solar energy solutions based on the BOOT (Build, Own, Operate, Transfer) framework. Under this model, the company builds and operates solar projects, providing clients with sustainable energy solutions.

Oriana Power IPO Details:

The Oriana Power IPO is a Book Built Issue with a total issue size of Rs 59.66 Crores. The IPO price ranges from ₹115 to ₹118 per share, and the company is set to be listed on the NSE SME platform. The IPO subscription window is open from Aug 1, 2023, to Aug 3, 2023.

IPO Details at a Glance:

IPO Open Date	Aug 1, 2023
IPO Close Date	Aug 3, 2023
Face Value	₹10 per share
Price	₹115 to ₹118 per share
Lot Size	1200 Shares
Total Issue Size	5,055,600 shares (aggregating up to ₹59.66 Cr)
Fresh Issue	5,055,600 shares (aggregating up to ₹59.66 Cr)
Issue Type	Book Built Issue IPO
Listing At	NSE SME

Promoter Holding:

The promoters of Oriana Power Limited are Mr. Anirudh Saraswat, Mr. Rupal Gupta, and Parveen Kumar. The pre-issue shareholding is 83.40%, which will be reduced to 61.41% post the IPO.

Financial Performance:

Financial Information (Restated Standalone)

Period Ended	31-Mar-2021 to 31-Mar-2023
Total Assets	₹2,964.83 Lakhs to ₹7,799.99 Lakhs
Total Revenue	₹3,376.98 Lakhs to ₹13,395.37 Lakhs
Profit After Tax	₹282.38 Lakhs to ₹1,268.52 Lakhs
Net Worth	₹771.29 Lakhs to ₹3,621.84 Lakhs
Reserves and Surplus	₹464.29 Lakhs to ₹2,950.84 Lakhs
Total Borrowing	₹75.23 Lakhs to ₹1,489.19 Lakhs

Key Performance Indicators:

P/E (x)	20.7
Market Cap (₹ Cr.)	₹226.36
ROE	1.97%
ROCE	46%
Debt/Equity	0.41
EPS (Rs)	17.5
RoNW	34.10%

Use of Proceeds:

The net proceeds from the IPO will be allocated for the following purposes:

1. Meeting working capital requirements to support day-to-day operational expenses
2. Investment in subsidiary companies.
3. Capital expenditure to enhance technological capabilities and infrastructure.
4. General corporate purposes.

Oriana Power IPO Review:

[Dilip Davda] Despite a competitive landscape, Oriana Power Limited stands as a prominent player in the solar energy sector. The impressive financial performance in recent years has raised curiosity, with potential concerns regarding its sustainability. Based on its FY23 earnings, the IPO seems reasonably priced, making it a viable investment option for informed investors with medium to long-term perspectives

IPO Subscription Status (as of Aug 2, 2023):

The Oriana Power IPO is oversubscribed by 20.36 times, with retail subscriptions leading at 35.54 times, NII at 11.78 times, and QIB at 0.23 times.

Conclusion:

Oriana Power Limited's IPO provides an opportunity for investors to contribute to a more sustainable future by supporting a company that offers innovative solar energy solutions. While the competitive landscape warrants careful consideration, the company's recent financial performance and growth prospects make it an appealing option for investors looking for long-term rewards.