As of 2 pm, the issue was subscribed 1.18 times, with the retail investor category booked 1.23 times. The non-institutional investor (NII) category saw strong demand, being subscribed 2.51 times. Qualified institutional buyers placed bids for 9,999 shares out of the 1.23 crore shares reserved for them.
Meanwhile, the current grey market premium (GMP) for Premier Energies is Rs 330, representing a 73% premium in the unlisted market.
The IPO consists of a fresh issue of equity shares aggregating up to Rs 1,291 crore and an Offer for Sale (OFS) of up to 3.42 crore shares by the selling shareholders.
Under the offer-for-sale component, South Asia Growth Fund II Holdings LLC will divest 2.68 crore equity shares and South Asia EBT Trust will divest 1,72,600 equity shares and promoter Chiranjeev Singh Saluja will sell 72,00,000 equity shares.About 50% of the offer is reserved for QIB investors, 35% for retail investors, and the rest 15% for non-institutional investors.
Premier Energies IPO price band
The company has fixed a price band of Rs 427-450 per share, where investors can bid for 33 shares in one lot.
Premier Energies IPO review
Most analysts advised investors to subscribe to the IPO as the company has a diversified customer base with relationships both within India and overseas. The company also has a strong order book of Rs 5,926 crore.
“At a higher price band, PEL is demanding a EV/Sales multiple of 4.8x, which seems to be attractive considering the prevailing valuation of a sole listed peer (which is loss making). Thus, we assign a SUBSCRIBE rating for the issue,” said Choice Broking.
“Given its strategic investments, strong financial recovery, and substantial order book, the company is well-positioned to capitalize on growth opportunities in the solar energy sector. Therefore, we recommend a Subscribe rating for medium to long-term investment,” said BP Wealth.
Other details
The company proposes to utilize the net proceeds towards investment in its subsidiary, Premier Energies Global for part-financing the establishment of a 4 GW Solar PV TOPCon Cell and 4 GW Solar PV TOPCon Module manufacturing facility in Hyderabad and the rest towards general corporate purposes.
Kotak Investment Banking, JP Morgan and ICICI Securities are acting as the book-running lead managers to the issue.
Premier Energies was the second largest integrated player in India at the end of FY24, boasting 2 GW of annual installed capacity for cell manufacturing alongside its 4.13 GW of annual installed capacity for module manufacturing. It is the largest Indian exporter of solar cells to the US in FY24.
As of the date of filing RHP, the company has five manufacturing facilities which are all located in Hyderabad, and it conducts operations through eight subsidiaries in India and overseas.
India’s module manufacturing capacity reached approximately 72 GW in FY2024 and while its current solar cell manufacturing capacity stands at 8.1 GW, it is also poised for future exponential growth.
India’s strong commitment to renewable energy, ambitious targets and favorable regulatory framework have attracted substantial investments in solar power projects, positioning India as a key player in the global solar market.
Premier Energies financial performance
The company’s revenue from operations increased at a compounded annual growth rate (CAGR) of 42.71% from FY21-23. Its FY24 revenue increased by 120% to Rs 3,143 crore. The company clocked a profit of Rs 231 crore in FY24 as against a loss of Rs 13.3 crore a year ago.
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