Fujiyama Power Systems IPO GMP: Should you apply or avoid ? 

All You Need to Know Before Investing

The IPO season continues to remain active, and the latest to hit the market is Fujiyama Power Systems Ltd. The company, known for its presence in India’s renewable energy sector, is opening its Initial Public Offering (IPO) for subscription soon.

Here’s a complete breakdown of the company’s business, IPO details, financials, and what investors should know before applying.

About Fujiyama Power Systems Ltd

Fujiyama Power Systems Ltd is a solar energy solutions company offering a diverse range of products under the popular brands UTL Solar and Fujiyama Solar.

The company designs, manufactures, and markets solar panels, solar inverters, batteries (lead-acid and lithium-ion), and other energy solutions. Its main focus lies in rooftop solar systems, including on-grid, off-grid, and hybrid models catering to residential, commercial, and industrial clients.

Fujiyama Power Systems has capitalised on the rising demand for clean energy in India, positioning itself as a leading name in the affordable and reliable solar solutions segment.

IPO Details

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The entire IPO is an Offer for Sale, meaning no new shares will be issued. All the proceeds from the issue will go to the selling shareholders, and the company will not receive any funds from the offer.

Objectives of the IPO

Since this IPO is purely an Offer for Sale, the company will not raise any fresh capital. The objective of the issue is to provide liquidity to existing shareholders and achieve the benefits of listing on the stock exchanges.

However, listing will bring greater visibility, improved corporate governance standards, and potential access to capital markets for future fund-raising.

Business Operations and Strengths

Fujiyama Power Systems operates across multiple segments of the renewable power ecosystem, focusing on solar and power backup systems.

1. Diverse Product Portfolio

The company manufactures and supplies a wide range of products, including:

• Solar panels and inverters
• Lead-acid and lithium-ion batteries
• Power conditioning units and hybrid solar systems

This diversified product mix allows the company to serve various customer segments and adapt quickly to market demand.

2. Wide Distribution Network

The company has built a robust distribution model that includes:

• Over 725 distributors
• 5,500+ dealers across India
• 1,100 exclusive franchise outlets (Shoppe model)
• 600+ service engineers providing after-sales support

This strong network ensures nationwide market reach and faster service delivery — a major competitive advantage in the energy sector.

3. Growing Renewable Energy Demand

India’s rapid transition toward renewable energy and increasing adoption of rooftop solar systems have created a large market opportunity for Fujiyama. The company’s brand recognition, wide dealer network, and diversified portfolio place it in a strong position to capture this growth.

Financial Performance

Fujiyama Power Systems has recorded consistent revenue and profit growth over recent years.

The company’s profitability surged significantly in FY25 due to higher sales volume, better capacity utilisation, and an improved product mix.

In the June 2025 quarter, Fujiyama reported revenue of around Rs.597 crore and profit of Rs.67.6 crore, showcasing continued operational momentum.

Industry Overview

India’s renewable energy sector is on a rapid growth trajectory. The government’s mission to achieve 500 GW of renewable capacity by 2030 has accelerated the adoption of solar technology.

The rooftop solar segment is one of the fastest-growing categories, supported by:

• Declining solar module prices
• Rising electricity costs
• Government incentives and subsidies
• Increasing consumer awareness about sustainable energy solutions

Fujiyama Power Systems, with its wide product range and strong brand identity, is well-positioned to benefit from these tailwinds.

Peer Comparison

The company competes with several established players in the renewable energy and power storage industry.

Based on the IPO price band and FY25 earnings, Fujiyama Power Systems’ implied P/E ratio stands around 38–40x, which is in line with industry peers.

Strengths

1. Strong Brand Recognition: The “UTL Solar” and “Fujiyama Solar” brands enjoy high visibility in the solar and inverter markets.
2. Diverse Product Mix: Presence in solar, inverter, and battery solutions reduces dependency on any single product category.
3. Expansive Dealer Network: Wide geographical coverage ensures effective penetration across urban and rural markets.
4. Technological Edge: Focus on lithium-ion battery technology enhances long-term competitiveness in the energy storage segment.

Risks to Consider

1. Pure OFS Issue: Since no new funds are raised, the IPO doesn’t strengthen the company’s balance sheet.
2. High Industry Competition: The solar and battery market has several strong players offering similar products.
3. Dependence on Government Policies: Subsidies and solar incentives significantly affect the sector’s economics.
4. Volatility in Raw Material Prices: Components like solar cells and lithium cells are sensitive to global price and supply changes.
5. Valuation Sensitivity: At a P/E of nearly 40x, valuations are on the higher side, leaving limited margin for error if growth slows.

IPO Timeline

Conclusion

The Fujiyama Power Systems IPO offers investors a chance to participate in one of India’s fastest-growing renewable energy segments. The company has demonstrated strong financial growth, a solid brand presence, and a robust distribution network.

However, since this IPO is entirely an Offer for Sale, it will not inject fresh capital into the business. Investors should view this issue primarily as an opportunity for existing shareholders to unlock value rather than a fund-raising event for expansion.

Overall, Fujiyama Power Systems stands out for its strong fundamentals, growth potential, and brand reputation — making it a noteworthy IPO in India’s clean energy landscape.