Fujiyama Power Systems had a weak market debut, listing at a discount of up to 4.2% from its Rs 228 issue price. This occurred despite its IPO being subscribed over two times, although a low grey market premium had signaled a lukewarm reception.
Fujiyama Power Systems failed to impress the street on its market debut on Thursday (November 20), listing at a discount on both the BSE and NSE despite steady investor interest during the IPO and a small grey market premium ahead of the launch. The stock opened at Rs 218.40 on the BSE, about 4.2% below its issue price of Rs 228. On the NSE, it fared only slightly better at Rs 220, still 3.5% lower than the IPO price. The company began trading with a market cap of roughly Rs 6,692 crore.
Grey Market Hints Proved Accurate
In the run-up to the listing, Fujiyama's shares were trading with a very thin grey market premium, a signal that demand could be lukewarm.
- Investorgain pegged the GMP at just 0.22%, down from 1.32% on the allotment day (November 18).
- IPO Watch estimated a slightly higher 0.43% premium, but still too weak to push the listing into positive territory.
The soft grey market cues ended up mirroring the underwhelming listing performance.
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IPO Snapshot
The company's Rs 828-crore IPO, held between November 13 and 17, saw decent but not extraordinary demand, closing with just over 2x subscription.
Breakdown of the issue:
- Rs 600 crore: Fresh equity issue
- Rs 228 crore: Offer for sale (10 lakh shares offloaded by promoters)
- Price band: Rs 216–Rs 228
Use of proceeds:
- Rs 180 crore to set up a new manufacturing unit in Ratlam, Madhya Pradesh
- Rs 275 crore for debt repayment
- Remaining funds to support general corporate needs
Analysts Still Back Long-Term Story
Despite the weak market debut, analysts remain positive about Fujiyama's business outlook.
Narendra Solanki of Anand Rathi noted that the company offers a full-stack rooftop solar ecosystem, with products ranging from solar inverters and panels to batteries and EV solutions, including lithium-ion batteries and e-rickshaw chargers.
He highlighted key strengths such as:
- A strong B2C distribution network
- Four manufacturing plants
- In-house R&D capabilities
At the upper price band, the stock was valued at 45x FY25 EPS, reflecting a post-issue market cap of Rs 6,986 crore.
Solanki maintains a "hold for the long term" view, advising that the stock may reward patient investors depending on their risk appetite.
