Premier Energies Gears Up for ₹1,500 Crore IPO to Fund Expansion and New Facilities

22 Apr 2024 , 09:26 AM

Premier Energies, a leading player in the solar energy sector, has taken a significant step towards expansion by initiating the process for an initial public offering (IPO), as per the recent disclosure to SEBI, India’s capital markets regulator.

The IPO comprises two components: a fresh issuance of equity shares valued at ₹1,500 Crore by the company and an offer-for-sale (OFS) of 2.82 Crore equity shares by existing shareholders.

Among the selling shareholders in the OFS are Investors South Asia Growth Fund II Holdings LLC, South Asia EBT Trust, and promoter Chiranjeev Singh Saluja. As of the draft filing, promoters hold 72.23% stake on a fully diluted basis, with public shareholders, including South Asia Growth Fund II Holdings LLC and South Asia EBT Trust, holding 26.12% shares. Additionally, employees have a 1.65% shareholding in the company.

The company, headquartered in Hyderabad, is also exploring a pre-IPO placement to raise approximately ₹300 Crore before finalizing the red herring prospectus with the Registrar of Companies.

Premier Energies positions itself as the second largest integrated manufacturer of solar cells and solar modules, boasting an annual installed capacity of 2 GW and 3.36 GW, respectively. The company plans to utilize a substantial portion of the net fresh issue proceeds, amounting to ₹1,168.74 Crore, for the establishment of a 4 GW solar PV TOPCon cell and 4 GW solar PV TOPCon module manufacturing facility in Hyderabad through its subsidiary, Premier Energies Global Environment (PEGEPL). The remaining funds will be allocated towards general corporate purposes.

Financially, the company, which also engages in EPC projects, independent power production, and O&M services, reported a consolidated loss of ₹13.3 Crore for the fiscal year ended March FY23, compared to a loss of ₹14.4 Crore in the preceding fiscal year. However, revenue from operations surged by 92.3% to ₹1,428.5 Crore during the same period. Notably, the company achieved profitability in the nine-month period ending December FY24, with a profit of ₹127.4 Crore on revenue of ₹2,017.2 Crore.

Premier Energies operates five manufacturing facilities in Hyderabad and caters to a diverse clientele including NTPC, Tata Power, Panasonic Life Solutions, and others. The company’s order book as of March 15, 2024, stood at ₹5,362 Crore, with significant contributions from various segments including non-DCR solar modules, DCR solar modules, solar cells, and EPC projects.

Kotak Mahindra Capital Company, JP Morgan India, and ICICI Securities have been appointed as the book-running lead managers to the IPO.