Premier Energies IPO Opens Aug 27, Price Band ₹427-450

22 Aug 2024 , 09:41 AM

Premier Energies, a leading solar cell and module manufacturer, has announced a price band of ₹427-450 per share for its upcoming initial public offering (IPO), which is set to open for subscription on August 27. The offering includes a fresh issue worth ₹1,291.40 Crore and an Offer For Sale (OFS) of up to 34.2 million shares by existing promoters and shareholders. At the upper price band, the total issue size is approximately ₹2,830 Crore, with the OFS alone accounting for around ₹1,539 Crore. The expected market capitalization after listing could reach around ₹20,530 Crore.

The anchor book for the IPO will open on August 26, with the issue closing on August 29. The finalization of allotment is scheduled for August 30, refunds are expected by September 2, and the stock is set to list on exchanges on September 3. The key sellers in the OFS include South Asia Growth Fund I Holdings LLC, South Asia EBT Trust, and promoter Chiranjeev Singh Saluja.

Proceeds from the IPO will be used to fund Premier Energies’ subsidiary, Premier Energies Global Environment Private Ltd, for part-financing a 4 GW Solar PV TOPCon Cell and 4 GW Solar PV TOPCon Module manufacturing facility in Hyderabad. The TOPCon technology, which stands for Tunnel Oxide Passivated Contact, is emerging as a new standard in solar cell manufacturing.

For the June quarter, Premier Energies reported a revenue of ₹1,657.37 Crore, a significant increase from ₹611 Crore in the same period last year. Net profit for the quarter rose to ₹245.73 Crore, up from ₹43.53 Crore last year. The company also reported an EBITDA margin of 22.16%, compared to 12.44% in the previous year.

Premier Energies operates five manufacturing facilities in Hyderabad and counts NTPC, Tata Power, Panasonic Life Solutions, and Luminous Power Technologies among its key clients. As of June 2024, the company’s order book stands at ₹5,926.57 Crore, with significant contributions from non-DCR solar modules, DCR solar modules, solar cells, and EPC projects.

Kotak Mahindra Capital Company, JP Morgan India, and ICICI Securities are the book-running lead managers for the IPO.