1. Company Background: From LEDs to Solar Leadership
Established originally in 1999 and rebranded in 2023, GRE Renew Enertech has evolved from a lighting manufacturer into a full-scale renewable energy solutions provider. While they still produce LED lighting, more than 90% of their revenue now flows from their solar segment.
They operate under two primary business models:
CAPEX (EPC) Model: Turnkey projects where the customer owns the solar plant, and GRE handles design, procurement, and construction.
RESCO (Opex) Model: GRE owns the solar asset and sells the power to the customer at a pre-agreed tariff, creating a steady stream of annuity income.
2. Key IPO Details & Timeline
The issue is a 100% Fresh Issue, ensuring all capital raised is utilized for the company's expansion.
| Event | Date / Details |
|---|---|
| IPO Open Date | Tuesday, January 13, 2026 |
| IPO Close Date | Friday, January 16, 2026 |
| Price Band | ₹100 to ₹105 per share |
| Lot Size | 1,200 Shares |
| Minimum Investment (Retail) | ₹2,52,000 (Min 2 Lots / 2,400 Shares) |
| Allotment Finalization | Monday, January 19, 2026 |
| Listing Date | Wednesday, January 21, 2026 |
| Listing Platform | BSE SME |
3. Financial Snapshot
The company has shown a healthy ability to scale, though margins have fluctuated with raw material costs.
Total Revenue (FY25): ₹84.37 Crore
Profit After Tax (FY25): ₹7.03 Crore
EBITDA Margin: 11.33%
Return on Equity (ROE): 26.89%
Debt-to-Equity: 0.05 (Virtually debt-free, a major positive).
4. Objectives of the Issue
The primary use of the ₹39.56 crore proceeds is geared toward building long-term assets:
Solar Power Plant (~₹32.61 Cr): Setting up a 7.20 MW (AC) ground-mounted solar project to expand their RESCO (recurring income) portfolio.
General Corporate Purposes: General operational expenses and working capital.
5. Investment Analysis: Strengths vs. Risks
Strengths:
Strong Track Record: Successfully executed over 61 MW of solar projects across 13+ states.
Low Leverage: The company operates with very low debt, providing a safety net for future expansion.
Policy Tailwinds: Benefits directly from government initiatives like PM-KUSUM and rooftop solar subsidies.
Risks:
Geographical Concentration: A large portion of revenue and projects are concentrated in Gujarat, making it vulnerable to regional policy changes.
Raw Material Costs: Solar PV module prices are highly volatile; any spike can compress EPC margins.
Intense Competition: The SME solar space is becoming "crowded" with many local and regional players bidding aggressively.
6. Conclusion
GRE Renew Enertech is a fundamentally steady player in a high-growth sector. With a post-IPO P/E ratio of approximately 18.7x, the valuation is competitive compared to peers like Saroja Pharma or Alpex Solar. Currently, the Grey Market Premium (GMP) is hovering around ₹9 (~8-9%), suggesting a positive but cautious market sentiment.