Premier Energies made an impressive stock market debut today, with its shares opening at ₹990 on the NSE, a 120% increase from its IPO price of ₹450. On the BSE, the shares listed at ₹991, also reflecting a 120.22% premium.
IPO Details
The ₹2,830.40 crore IPO of Premier Energies, a major player in solar cell and module manufacturing, was open for subscription from August 27 to August 29, 2024. The IPO price was set between ₹427 and ₹450 per share. Before the IPO, Premier Energies raised ₹846 crore from anchor investors, showing strong market interest.
Strong Subscription Response
The IPO received a robust response, being subscribed 75 times over. Investors bid for 332.78 crore shares against 4.41 crore available shares. The retail category was subscribed 7.44 times, non-institutional investors’ quota by 50.98 times, and the qualified institutional buyers (QIBs) portion by 212.42 times. The employee portion was subscribed 11.32 times.
About the IPO Offering
The IPO included a fresh issue of 2.87 crore shares, raising ₹1,291.40 crore, and an offer for sale (OFS) of 3.42 crore shares worth ₹1,539.00 crore. Major shareholders, including South Asia Growth Fund II Holdings LLC (SAGF II) and the South Asia EBT Trust, sold a portion of their shares in the OFS.
Post-IPO, the promoters retain a 72.23% stake in the company, while the public holds 26.12%, including shares owned by SAGF II. An additional 1.65% of shares are held by employee trusts.
Allocation Structure
The IPO allocation was divided with 50% reserved for QIBs, 15% for non-institutional investors, and 35% for retail investors. Employees received a ₹22 per share discount, with a minimum application size of 33 shares, requiring an investment of at least ₹14,850 for retail participants.
About Premier Energies
Founded in April 1995, Premier Energies is a leading solar energy company, specialising in manufacturing solar cells and panels. They offer a wide range of products, including monofacial and bifacial solar modules, as well as EPC (Engineering, Procurement, and Construction) and O&M (Operations and Maintenance) services. The company operates five advanced manufacturing facilities in Hyderabad and Telangana.
Premier Energies has experienced significant growth, with a compound annual growth rate (CAGR) of 42.71% in operating revenue from FY21 to FY23. In FY24, the company’s revenue surged by 120% to ₹3,143 crore, marking a strong recovery from a ₹13.3 crore loss the previous year, to a profit of ₹231 crore.
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