Premier Energies IPO Subscription Details on Day 1

27 Aug 2024 , 05:02 PM

The initial public offering (IPO) of Premier Energies, a solar cell and module manufacturer, opened for subscription today on August 27, aiming to raise ₹2,830.40 Crore. The IPO closes on August 29, with a price band set between ₹427 and ₹450 per share.

Prior to the IPO launch, Premier Energies secured ₹846 Crore from anchor investors, signaling strong pre-market interest.

The IPO consists of a fresh issue of 2.87 Crore shares, aggregating ₹1,291.40 Crore, and an offer for sale (OFS) of 3.42 Crore shares, totaling ₹1,539 Crore.

At the time of writing on August 27, 2024 at 4:04 pm, the IPO shows an overall subscription of 1.65 times. The NII is subscribed 3.80 times, RII is subscribed 1.62 times.

In the OFS, South Asia Growth Fund II Holdings LLC (SAGF II) will divest 2.68 Crore equity shares, South Asia EBT Trust will sell 1,72,800 shares, and promoter Chiranjeev Singh Saluja will offload 72 lakh shares.

Currently, Premier Energies’ promoters hold a 72.23% stake, while the public owns 26.12%, which includes shares held by SAGF II. An additional 1.65% is owned by employee trusts.

The IPO allocation includes 50% of shares reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and 35% for retail investors. Employees receive a ₹22 per share discount, with a minimum application of 33 shares, requiring at least ₹14,850 from retail investors.

The IPO allotment is expected on August 30, 2024, with a potential listing on the BSE and NSE on September 3, 2024. Kotak Investment Banking, JP Morgan, and ICICI Securities are the lead managers.

Premier Energies, founded in April 1995, specializes in integrated solar cell and module manufacturing. The company operates five facilities in Hyderabad, Telangana, offering solar cells, solar modules, monofacial and bifacial modules, EPC, and O&M solutions.

According to the red herring prospectus (RHP), Websol Energy System Ltd. is listed as the only comparable peer.

From FY21 to FY23, Premier Energies’ operating revenue grew at a compound annual growth rate (CAGR) of 42.71%. In FY24, the company’s revenue surged by 120% to ₹3,143 Crore, and it reported a profit of ₹231 Crore, a significant turnaround from a ₹13.3 Crore loss in the previous fiscal year.