ACME Solar Holdings IPO Subscription Details on Day 1

6 Nov 2024 , 01:50 PM

The IPO for renewable energy firm ACME Solar Holdings Ltd opened today on Wednesday, November 6, and closes on Friday, November 8.

On November 5, ACME Solar raised ₹1,300.50 Crore from anchor investors ahead of the IPO launch. The IPO price range is set at ₹275-₹289 per share for this Gurugram-based company.

Share allocation includes a minimum of 75% for Qualified Institutional Buyers (QIBs), up to 15% for Non-Institutional Investors (NIIs), and no more than 10% for retail investors, with a ₹10 Crore portion reserved for employees.

At the time of writing on the first of subscription, November 6, 2024 at 1:45 pm, Retail investors subscribing their portion with a 0.87 times bid. The employee reserved segment also performed well, achieving 0.44 times subscription. Non-institutional investor (NII) demand was modest, with only 0.09 times subscription, while qualified institutional buyers (QIBs) are subscribed 0.15 times.

ACME Solar focuses on developing, owning, and operating large-scale renewable energy projects, supported by in-house engineering, procurement, and construction (EPC), as well as operation and maintenance (O&M) services.

The company supplies electricity to buyers, including central and state-backed entities, with 85% of its operational capacity based in Andhra Pradesh, Rajasthan, and Telangana.

Competitors include Adani Green Energy Ltd (P/E of 291.7x) and ReNew Energy Global PLC (P/E of 48.8x). In FY24, ACME Solar’s revenue rose 1.88% to ₹1,319.25 Crore, turning profitable with ₹698.23 Crore compared to a loss in FY23.