ACME Solar IPO: Key Details, Price Band, and Listing Date

31 Oct 2024 , 09:13 AM

ACME Solar Holdings Ltd, a major player in India’s renewable energy sector, has set its IPO price band at ₹275-289 per share. This ₹2,900-crore IPO will open for public subscription on November 6, following the filing of the red herring prospectus on October 29.

The IPO will feature a mix of fresh equity issuance, valued at ₹2,395 crore, and an offer-for-sale (OFS) worth ₹505 crore by its sole promoter, ACME Cleantech Solutions. The company has also reserved shares worth ₹10 crore for its employees. In terms of allocation, 75% of the net offer is reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors, and the remaining 10% for retail investors.

The IPO’s basis of allotment is expected to be finalized by November 11. The shares will get credited to eligible shareholders’ demat accounts on November 12. The company will start trading on the BSE and NSE from November 13.

Gurugram-based ACME Solar intends to use ₹1,795 crore of the proceeds to repay debt, with the balance going toward general corporate expenses. As of August 2024, ACME Solar reported a total debt of ₹9,891.7 crore. Established in 2015, the company has become one of India’s largest renewable IPPs, with only Adani Green Energy as a listed competitor. Since its inception, ACME has developed and commissioned solar projects totaling 2,719 MW (3,668 MWp). Currently, it operates 1,340 MW (1,826 MWp) of solar projects and has contracted under-construction projects of 3,250 MW, along with awarded projects totaling 1,730 MW.

Nuvama Wealth Management, ICICI Securities, JM Financial, Kotak Mahindra Capital Company, and Motilal Oswal Investment Advisors are leading the issue as the book-running lead managers.