August 27, 2024
New Delhi, India
Premier Energies IPO Day 1
Premier Energies, a leading manufacturer of solar cells and modules, has launched its initial public offering (IPO) today, August 27. The IPO will remain open for subscription until August 29, with shares offered at a price range of ₹427 to ₹450 per equity share. The face value of each share is ₹1. The company has already secured ₹846 crore from anchor investors ahead of the public issue.
IPO Allocation: The Premier Energies IPO allocates 50% of the shares to Qualified Institutional Buyers (QIB), 15% to Non-Institutional Investors (NII), and 35% to retail investors. Additionally, employees are offered a discount of ₹22 per equity share.
Company Overview: Founded in April 1995, Premier Energies specializes in the production of integrated solar cells and panels. The company’s product range includes solar cells, solar modules, monofacial and bifacial modules, as well as Engineering, Procurement, and Construction (EPC) and Operations & Maintenance (O&M) solutions. Premier Energies operates five manufacturing facilities located in Hyderabad, Telangana, India.
According to the company’s Red Herring Prospectus (RHP), Websol Energy System Ltd. is its only listed comparable firm.
Financial Performance: Premier Energies has shown impressive financial growth, with its operating revenue increasing at a compound annual growth rate (CAGR) of 42.71% from FY21 to FY23. In FY24, the company’s revenue surged by 120%, reaching ₹3,143 crore. The company also turned profitable in FY24, reporting a net profit of ₹231 crore, a significant turnaround from a loss of ₹13.3 crore in the previous year.
Subscription Status: As of 11:12 IST on the first day of bidding, the Premier Energies IPO had been subscribed to 38%. The retail portion of the IPO was 46% booked, the NII segment was subscribed to 68%, while the QIB portion was yet to see significant activity. The employee portion had been subscribed to 92%, according to data from the BSE.
Offer Structure: The IPO consists of a fresh issuance of equity shares totaling up to ₹1,291.4 crore, along with an Offer for Sale (OFS) of up to 3.42 crore shares by existing shareholders, amounting to approximately ₹1,539 crore at the upper price band of ₹450.
In the OFS component, South Asia Growth Fund II Holdings LLC (SAGF II) will sell 2.68 crore equity shares, South Asia EBT Trust will divest 1,72,800 equity shares, and promoter Chiranjeev Singh Saluja will offload 72,00,000 equity shares.
Currently, the company’s promoters hold a 72.23% stake, with the public owning 26.12% of the shares, including those held by South Asia Growth Fund II Holdings LLC. The remaining 1.65% of shares are held by employee trusts.
The IPO’s book-running lead managers are Kotak Investment Banking, JP Morgan, and ICICI Securities.
Grey Market Premium (GMP): As of today, Premier Energies’ IPO shares are trading at a grey market premium (GMP) of +₹358, according to investorgain.com. Considering the upper price band of ₹450, the estimated listing price of Premier Energies shares is projected at ₹808 apiece, reflecting a potential gain of 79.56% over the IPO price.
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