September 3, 2024
New Delhi, India
Premier Energies, a leading solar cell and module manufacturer, had a remarkable debut on the stock market today, with its shares listing at ₹990 on the National Stock Exchange (NSE) and ₹991 on the Bombay Stock Exchange (BSE). This represents a premium of over 120% from its initial public offering (IPO) price of ₹450.
Key Highlights:
- IPO Details: The ₹2,830.40 crore IPO was open for subscription from August 27 to August 29, 2024, with a price band set between ₹427 and ₹450 per share.
- Strong Demand: The IPO witnessed robust demand, being subscribed 75 times overall, including 212.42 times by qualified institutional buyers (QIBs), 50.98 times by non-institutional investors (NIIs), and 7.44 times by retail investors.
- Anchor Investment: Prior to the IPO, Premier Energies raised ₹846 crore from anchor investors, signaling strong interest.
Also Read: SEBI Announces Single Exchange Filing, AI-Driven IPO Approvals, and New Rules for Finfluencers
IPO Structure and Offer:
The IPO comprised a fresh issue of 2.87 crore shares, raising ₹1,291.40 crore, along with an offer for sale (OFS) of 3.42 crore shares, totaling ₹1,539 crore. The OFS included:
- South Asia Growth Fund II Holdings LLC (SAGF II): Sold 2.68 crore shares.
- South Asia EBT Trust: Divested 1,72,800 shares.
- Promoter Chiranjeev Singh Saluja: Offloaded 72 lakh shares.
Post-IPO Stake Distribution:
- Promoters: Retain a 72.23% stake.
- Public Shareholding: Accounts for 26.12%, including shares held by SAGF II.
- Employee Trusts: Hold 1.65% of shares.
Share Allocation:
The IPO allocation was structured as follows:
- QIBs: 50%
- NIIs: 15%
- Retail Investors: 35%
- Employees: Offered a ₹22 per share discount, with a minimum application size of 33 shares.
Lead Managers and Registrars:
Kotak Mahindra Capital Company Limited, J.P. Morgan India Private Limited, and ICICI Securities Limited acted as the book-running lead managers, while Kfin Technologies Limited served as the registrar for the IPO.
Premier Energies’ strong market debut reflects significant investor confidence in the company’s growth prospects amid the booming renewable energy sector.
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