Fujiyama Power Systems Listing: A Disappointing Market Debut

Fujiyama Power Systems Share Price at Market Debut

The shares of Fujiyama Power Systems made a weak stock market debut on November 20, listing at Rs 218.40 apiece on BSE, reflecting a b 4.21% discount over the IPO price of Rs 228. It also listed on NSE at Rs 220, marking a lower discount of 3.51%. The company's market capitalization during debut stood at approximately Rs 6,692 crore.

Listing vs Grey Market Estimates

Ahead of the listing, the unlisted shares traded with a marginal 0.22% grey market premium (GMP) over the IPO price. However, the GMP quoted by the site has fallen from 1.32% earlier noted on November 18.

Details of Fujiyama Power Systems IPO

The Rs 828-crore IPO attracted decent investor interest, being subscribed more than two times its offer size between November 13 and November 17. Fujiyama Power Systems aimed to raise Rs 828 crore through a fresh issue of equity shares valued at up to Rs 600 crore and an offer for sale of 10 lakh shares, worth Rs 228 crore.

The price band for the IPO was set at Rs 216-228 per share, with proceeds to finance the establishment of a manufacturing facility in Ratlam, Madhya Pradesh, along with debt repayment and general corporate purposes.

Long-term Investment Perspective

Narendra Solanki, Head of Fundamental Research at Anand Rathi Shares, states that Fujiyama Power Systems offers an integrated rooftop solar ecosystem, covering product development and distribution. They provide solar inverters, batteries, and e-rickshaw solutions, operating largely as a B2C player.

Solanki recommends holding the stock for the long term, depending on the investor’s risk profile.

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