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.

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.

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