Solarium Green Energy Limited - IPO

The company provides turnkey solar solutions, including design, engineering, procurement, construction, testing, commissioning, transmission systems, and Operation & Maintenance for residential, commercial, industrial, and government solar projects.

The company offers turnkey EPC (Engineering, Procurement, and Commissioning) contracts, covering site assessment, technology evaluation, engineering, supply chain management, construction, logistics, manpower, financial planning, and warranties for solar projects.

Business Model:

• Turnkey Solutions for Solar Projects: The company provides residential rooftop solar installations, C& rooftopand ground-mounted projects, and government tenders for various renewable energy systems, including hybrid solutions and grid-connected installations.
• Sale of Solar Products: The company supplies solar products, including PV modules, inverters, and ABT meters, procure items from accredited vendors, and previously manufactured polycrystalline solar modules for turnkey projects and direct client supply.

The company has completed 11,195 residential, 172 Commercial and Industrial, and 17 government solar projects in the past three years.

As of September 30, 2024, the company employs 253 people.

Competitive Strengths:

• Scaled and integrated operations for renewable energy projects
• Diversified Portfolio with strong domestic presence
• Strong relationship with customers and suppliers
• Experienced management team with industry expertise

1. Scaled and integrated operations for renewable energy projects.

2. Diversified Portfolio with strong domestic presence.

3. Strong relationship with customers and suppliers.

4. Experienced management team with industry expertise.

1. The company revenues are highly dependent on its operations in the geographical region of the State of Gujarat. Any adverse development affecting its operations in this region could have an adverse impact on the company business, financial condition and results of operations.

2. The company were engaged in the manufacturing of Polycrystalline Solar Module from year 2018, which was put on halt in February, 2024, due to reforms in Approved List of Modules and Manufacturers of Solar Photovoltaic Modules by Ministry of New & Renewable Energy. Any such regulatory changes or change by Ministry of New & Renewable Energy or any other government authority in policy in relation to solar modules or ancillary products may affect the company's operations, cash flows and financial conditions.

3. The company business is dependent on few numbers of clients. Its Top 10 customers contributed 40.76%, 41.01%, 25.98% and 39.71% of revenue from operations in period/financial year ended on September 30, 2024, March 31, 2024, 2023 and 2022, respectively. The loss of any of these clients could have an adverse effect on its business, financial condition, results of operations and cash flows.

4. Several of its key raw materials and components are sourced from a limited group of suppliers, which exposes it to supplier concentration risks. Any restriction in supply or defects in quality could cause delays in project construction or implementation and impair its ability to provide the company services to clients at a price that is profitable to it, which could have a material adverse effect on its business, financial condition and results of operations.

5. The company is exposed to risks associated with time and cost overruns, delays or under- estimations of its costs of construction, which may affect the economic viability of the company renewable energy projects.

6. Its may be unable to accurately estimate costs under Lumpsum turnkey contracts, fails to maintain the quality under its turnkey contracts and the company may experience delays in completing the construction of solar power projects, which may increase its construction costs and working capital requirements, and may have a material adverse effect on its financial condition, cash flow and results of operations.

7. The company as well as its Promoters may be involved in certain legal proceedings, which may materially and adversely affect its business financial condition and results of operations.

8. Orders in its order book may be delayed, modified or cancelled, and letters of intent may be withdrawn or may not translate to confirmed orders, which may have a material adverse effect on its business, results of operations and financial condition.

9. The Company has experienced negative cash flow in the past and may continue to do so in future, which could have a material adverse effect on its business, prospects, financial condition, cash flows and results of operations.

10. The company has in the past entered into a number of related party transactions and may continue to enter into related party transactions in the future on an arm's length basis, and there can be no assurance that the company could not have achieved more favourable terms if such transactions had not been entered into with related parties.