Premier Energies IPO Opens for Subscription on August 27

The initial public offering (IPO) of Premier Energies, valued at ₹2,830.40 crore, is set to open for subscription on Tuesday, August 27, and will close on Thursday, August 29.

This mainboard IPO consists of a fresh issue of 2.87 crore shares worth ₹1,291.40 crore and an offer for sale of 3.42 crore shares valued at ₹1,539.00 crore, totaling ₹2,830.40 crore.

The allotment of shares is expected to be finalized on Friday, August 30, with shares likely to be listed on the BSE and NSE on Tuesday, September 3. Investors who do not receive allotment may expect refunds on Monday, September 2.

The price band for the shares has been set between ₹427 to ₹450, while the minimum lot size for application is 33 shares, equating to a minimum investment of ₹14,850 for retail investors.

Premier Energies plans to utilize the proceeds from the IPO for establishing a 4 GW Solar PV TOPCon Cell and 4 GW Solar PV TOPCon Module manufacturing facility in Hyderabad, alongside general corporate purposes.

The company specializes in manufacturing integrated solar cells and modules and has five manufacturing facilities located in Hyderabad, with a combined annual capacity of 2 GW for solar cells and 4.13 GW for solar modules.

According to the Red Herring Prospectus (RHP), the demand for renewable energy is expected to increase, with predictions stating that 75% of electricity generation will derive from renewable sources by 2050. Currently, in FY24, renewable sources constituted 20.7% of India’s electricity generation.

The revenue from operations for Premier Energies has shown significant growth from ₹7,428.71 million in FY22 to ₹31,437.93 million in FY24. Additionally, the company reported its first profit of ₹2,313.60 million in FY24 after previously facing losses in fiscal years 2022 and 2023.

The grey market premium (GMP) for Premier Energies IPO is noted at ₹336, indicating a potential listing price of ₹786, reflecting a premium of 74.67% based on the upper end of the price band.

KFin Technologies is designated as the registrar for the IPO, while Kotak Mahindra Capital Company, JP Morgan India Private Limited, and ICICI Securities are acting as the book-running lead managers.