Premier Energies, a solar cell manufacturer, has set the price range for its upcoming Rs 2,830 crore IPO (Initial Public Offering) at Rs 427-450 per share. The IPO will start on August 27.
The offering includes a fresh issue of shares worth up to Rs 1,291 crore, and an Offer for Sale (OFS) where existing shareholders will sell around 3.42 crore shares, amounting to about Rs 1,539 crore at the upper price band of Rs 450 per share.
In the OFS, South Asia Growth Fund II Holdings LLC will sell 2.68 crore shares, South Asia EBT Trust will sell 1,72,600 shares, and promoter Chiranjeev Singh Saluja will sell 72 lakh shares.
The company plans to use the money raised from the fresh issue to invest Rs 1,168 crore in its subsidiary, Premier Energies Global Environment Private Limited (PEGEPL). This will help finance a new 4 GW Solar PV TOPCon Cell and 4 GW Solar PV TOPCon Module manufacturing facility in Hyderabad, Telangana. The remaining funds will go towards general corporate purposes.
Premier Energies is India’s second-largest integrated solar company, with an annual production capacity of 2 GW for solar cells and 4.13 GW for solar modules. It was the largest Indian exporter of solar cells to the US in FY24. The company operates five manufacturing facilities in Hyderabad and has eight subsidiaries in India and abroad.
India’s solar module manufacturing capacity reached about 72 GW in FY2024, with solar cell manufacturing capacity at 8.1 GW. The country’s strong commitment to renewable energy is driving significant growth in the solar sector.
Premier Energies’ revenue grew by 42.71% annually from FY21-23, with a 120% increase in FY24, reaching Rs 3,143 crore. The company also reported a profit of Rs 231 crore in FY24, a major turnaround from a loss of Rs 13.3 crore the previous year.
Kotak Investment Banking, JP Morgan, and ICICI Securities are managing the IPO.
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