Bright Solar Limited IPO Review

Bright Solar Limited IPO Review

Bright Solar Limited is engaged in assembling of DC/AC Solar Pumps and Solar Pump Systems. It is a Gujarat based company. This company is under the registered brand name of “PUMPMAN”, “BRIGHT SOLAR”, and “BRIGHT SOLAR WATER PUMP”. Before going through the Bright Solar Limited IPO Review, it’s important to provide the company’s issue details.

About Bright Solar Limited IPO :

  • IPO Opens on – June 26, 2018.
  • IPO Closes on – June 29, 2018.
  • Face Value – Rs. 10 Per Equity Share.
  • Issue Price – Rs. 36 Per Equity Share.
  • Issue Type – Fixed Price Issue IPO.
  • Market Lot – 3000 shares.
  • Minimum Order Quantity – 3000 shares.
  • Issue Size – 5,400,000 Equity Shares of Rs 10 aggregating up to Rs 19.44 Cr.
  • Listing Exchange – NSE SME Exchange.
  • Draft Prospectus – Download.

Objectives of the issue :

  • Acquisition of Land, its Registration, Stamping, and other charges.
  • Working Capital.
  • General Corporate Purpose.
  • Issue Expenses.

About The Company –

  • Bright Solar Limited is incorporated in 2010.
  • This company is also engaged in EPC contracts of Solar Photovoltaic Water pumps which include supplying, installing and commissioning of the pump system along with comprehensive maintenance contract for a specific period of 1-5 years.
  • Bright Solar Limited has a wide range of products for DC Solar Pump, Solar Pump Inverter, and AC Solar Pump.
  • This company started providing consultancy services for acquiring projects and tender bidding after identifying the competent client on the tender to tender basis.
  • Bright Solar Limited have also been added water supply, sewerage, and infra project in its service portfolio.
  • This company have also been awarded water supply and sewerage projects.
  • Bright Solar Limited is in the process of acquiring a land admeasuring area of 18209 Square meters at Kheda, Gujarat and on which the company is planning to set up a manufacturing unit for Solar PV modules/panels.
  • This company has already executed an agreement to sell for the acquisition of land.
  • Bright Solar Limited is also planning to set up a water treatment plant assembling unit at Patna (Bihar).
  • This company is into assembling of DC/AC Solar Pumps and Solar Pump Systems, EPC contracts of Solar Photovoltaic Water pumps, consulting of Projects and tenders, Water supply and Sewerages Infra Project.
  • Bright Solar Limited is planning to commence Solar Module manufacturing and water treatment plant assembling unit.
  • This company has 18 permanent employees on its payroll.

Bright Solar Limited

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Promoters of the company :

  • Mr Piyushkumar Thumar, aged 37 years is a Promoter Cum Chairman and Managing Director of this company.

Company Financials :

Bright Solar Limited IPO Review

Bright Solar Limited IPO Review :

From the above financial statement, it can be noticed that the net profit progress report is increased and decreased in an abrupt way. In the FY 2014-15 profit was increased suddenly but in the next FY, again there was low net profit. According to the last FY, the company recover it to some extent. Now, let’s have a look at the other important information, taken from DRHP or draft red herring prospectus. Earnings per share or EPS of the company stands at 11.41 in the last FY 2016-17. Their P/E ratio is at 3.16 as per the last FY. Its RoNW is 16.80 and NAV/share is 6.79 as per the last year 2016-17. Based on the available financial data Bright Solar Limited IPO Review carries a NEUTRAL view. The company lacks a consistent track record of financial growth and performance. Investors can invest in it at their own risk.

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