Premier Energies IPO Soars with 2.17x Subscription on Day 1: Latest GMP, Subscription Status & Key Details
Premier Energies’ IPO opened for subscription on August 27 and was quickly oversubscribed, reaching 2.17 times the offered shares on the first day. Investors can continue to bid for shares until August 29.
Allocation Breakdown
The IPO has allocated 50% of its shares for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 35% for retail investors. Additionally, employees of the company can purchase shares at a ₹22 discount per share.
About Premier Energies
Premier Energies Limited, established in April 1995, is a company focused on producing solar cells and panels. Their products include solar cells, monofacial and bifacial modules, and they also provide EPC (Engineering, Procurement, and Construction) and O&M (Operations and Maintenance) services. The company operates five manufacturing facilities, all based in Hyderabad, Telangana, India.
IPO Subscription Status
As of August 27, the IPO was subscribed 2.17 times, with 9,51,45,204 applications received for the 4,38,72,888 shares offered. Non-institutional investors led the demand, applying for 5,19,83,118 shares against 94,01,333 available. Retail investors submitted 4,19,09,571 applications, while the QIB segment was undersubscribed, receiving only 4,47,150 applications.
IPO Details
The IPO includes a fresh issue of equity shares worth up to ₹1,291.4 crore and an Offer for Sale (OFS) of 3.42 crore shares from existing shareholders, totalling around ₹1,539 crore based on the upper price band of ₹450 per share.
The OFS includes sales by South Asia Growth Fund II Holdings LLC (2.68 crore shares), South Asia EBT Trust (1,72,800 shares), and promoter Chiranjeev Singh Saluja (72,00,000 shares).
Currently, the promoters hold a 72.23% stake in the company, while the public holds 26.12%, which includes shares held by South Asia Growth Fund II Holdings LLC. The remaining 1.65% of shares are held by employee trusts.
Kotak Investment Banking, JP Morgan, and ICICI Securities are the lead managers for the issue.
Grey Market Premium
The grey market premium (GMP) for Premier Energies’ IPO is currently ₹390, indicating that the shares are trading at a premium in the grey market. Based on this premium, the estimated listing price of Premier Energies shares could be ₹840 per share, which would be an 86.67% increase over the IPO price of ₹450.
The GMP reflects investors’ willingness to pay more than the issue price for the shares in the grey market.
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