Fujiyama Power Systems Board Approves ₹1,200 Crore QIP to Meet Minimum Public Shareholding Norms

Fujiyama Power Systems Limited (BSE: 544613 | NSE: UTLSOLAR), the rooftop solar company behind the UTL Solar and Fujiyama Solar brands, has received board approval to raise up to ₹1,200 crore through a Qualified Institutions Placement (QIP) of equity shares. The decision was taken at the board meeting held on Thursday, 15 October 2026, and disclosed to the National Stock Exchange (NSE) and BSE the same day under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. According to the filing, the fundraise is intended to help the company achieve and maintain minimum public shareholding (MPS) requirements.

Key Terms of the Proposed QIP

The company proposes to issue equity shares with a face value of ₹1 each for an aggregate amount not exceeding ₹1,200 crore, inclusive of premium, at a price to be determined in accordance with applicable law. The issue will be carried out under the Companies Act, 2013 and the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, and remains subject to the approval of shareholders, the stock exchanges and other regulatory and statutory authorities.

Shareholder approval will be sought through a postal ballot, the notice for which will be circulated in due course. To execute the transaction, the board has constituted a QIP Committee of directors, empowered to:

determine the size, timing, number of shares and issue price;
identify eligible Qualified Institutional Buyers (QIBs) and approve allocation and allotment;
appoint intermediaries and advisors and finalise the placement documents; and
complete regulatory filings and obtain listing and trading approvals.

Why Public Shareholding Matters

Under the Securities Contracts (Regulation) Rules, 1957, listed companies in India are required to maintain a public shareholding of at least 25 per cent, and SEBI permits a QIP as one of the approved methods for reaching this threshold. Fujiyama listed on NSE and BSE on 20 November 2025 after an initial public offering of ₹828 crore, priced at ₹228 per share. The offer comprised a fresh issue of ₹600 crore and an offer for sale of ₹228 crore by promoters Pawan Kumar Garg and Yogesh Dua.

Following the listing, the promoter and promoter group continued to hold close to 87 per cent of the equity, as reflected in the shareholding patterns filed with the exchanges, leaving the public float well below the mandated level. A QIP of fresh shares to institutional investors widens the public float without promoters selling, while also bringing new capital into the company. The final extent of dilution will depend on the issue price fixed by the QIP Committee.

ESOP Allotment Approved at the Same Meeting

On the recommendation of the Nomination and Remuneration Committee, the board also approved the allotment of 4,11,587 equity shares of ₹1 each to eligible employees under the Employee Stock Option Plan 2023 (ESOP 2023). The shares were allotted at an exercise price of ₹398.39 each, including a premium of ₹397.39. As a result, the company’s paid-up share capital has increased from ₹30,69,01,762 to ₹30,73,13,349. The new shares rank pari passu with existing equity, and the company will seek listing and trading approvals from the exchanges.

Operating Performance

For the quarter ended 30 June 2026, revenue from operations rose 125.3 per cent year-on-year to ₹1,345.7 crore, compared with ₹597.3 crore in Q1 FY26. EBITDA grew 140.6 per cent to ₹254.8 crore, with the margin improving to 18.9 per cent from 17.7 per cent a year earlier.

Reported profit after tax stood at ₹57.8 crore, reflecting an exceptional item linked to the fire at the company’s Bawal facility in Haryana on 6 May 2026. Excluding this item of ₹107.4 crore (net of tax), normalised profit after tax was ₹165.2 crore. The company’s channel network crossed 10,100 partners, including distributors, dealers and exclusive Shoppes, as of 30 June 2026.

Manufacturing Expansion at Ratlam

At its integrated complex in Ratlam, Madhya Pradesh, a 2,000 MW solar panel line was commissioned during Q1 FY27, followed by a 2,000 MW power electronics facility in August 2026, while a 2,000 MW lithium-ion battery line is scheduled for commissioning by Q2 FY27. These additions have taken the company’s total solar panel and power electronics capacities to 3,568 MW and 4,180 MW, respectively.

In solar cells, the company operates a 1 GW Mono PERC facility at Dadri, Uttar Pradesh. In May 2026, its board approved a 1.2 GW TOPCon solar cell plant at Ratlam with an estimated investment of ₹350 crore, to be funded through debt and internal accruals, with commercial operations expected from Q1 FY2028. The company has linked this expansion to the implementation of ALMM List-II for solar cells from 1 June 2026 and to demand for domestic content requirement (DCR) compliant panels under the PM Surya Ghar: Muft Bijli Yojana. Its board has also approved raising the company’s stake in component suppliers Zayo Energy and Zayo Cables from 19 per cent to 50 per cent as part of its backward integration strategy.

Next Steps

The QIP will move forward once the postal ballot is completed and the required regulatory approvals are received, after which the QIP Committee will finalise the timing and pricing of the placement. The board’s filing does not specify how the proceeds will be deployed. Once completed, the issue is expected to widen Fujiyama’s institutional investor base and strengthen its balance sheet as it scales up manufacturing for India’s residential rooftop solar market.