Premier Energies Ltd, a leading player in solar cells and module manufacturing, has mobilised ₹846 crore from anchor investors ahead of its ₹2,830 crore IPO.
The Hyderabad-based firm has seen huge interest from large institutions in the run-up to its initial public offering. In a release Monday, the company said that it has raised ₹846 crore from a group of anchor institutional investors on Sunday – a day before going live for subscription.
Anchor Investors and Allocation
The IPO would comprise the anchor institutional investors, both domestic and foreign, which shall include, amongst others, investors such as Nomura Funds, Abu Dhabi Investment Authority, HDFC Mutual Fund, ICICI Prudential Mutual Fund, Axis Mutual Fund, Kotak Mutual Fund, Nippon India Mutual Fund, Sundaram Mutual Fund, and UTI Mutual Fund.
The company said in a release on the BSE’s website: This release states that the company will allott the 1.88 crore equity at a price of Rs 450 per piece to these 60 funds for a total consideration of Rs 846.11 crore.
IPO Details and Structure
The most awaited Initial Public Offering of Premier Energies is the one that closes on August 27 and opens on August 29, 2024. This IPO consists of a fresh issue along with an Offer for Sale. The price band per IPO is between ₹427 to ₹450 and a full issue size of ₹2,830 crore.
The new equity shares issue is ₹1,291.4 crore and the OFS consists of shares offered at the sale by the selling shareholders of up to a maximum of 3.42 crore. At a price band of ₹450 per share, the size of OFS transaction would be worth ₹1,539 crore.
The selling shareholders include notable names such as South Asia Growth Fund II Holdings LLC, South Asia EBT, and the company’s promoter, Chiranjeev Singh Saluja.
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Detailed Use of Proceeds
The proceeds from the new issue, which would amount to around ₹968.6 crore of the net proceeds, will be utilized for the investment in Premier Energies’ subsidiary, Premier Energies Global Environment Pvt Ltd. The proceeds will also be used to finance the establishment of a 4 GW Solar PV TOPCon Cell and four-GW Solar PV TOPCon Module manufacturing facility in Hyderabad, Telangana.
Any remaining proceeds from the new issuance of share will be used for other general corporate purposes to strengthen their balance sheet and future growth opportunities.
Company Overview and Financial Performance
Premier Energies has been a longstanding player in the solar energy field, with 29 years in business and a strong annual installed capacity of 2 GW for solar cells and 4.13 GW for solar modules. The company operates five manufacturing facilities and stands out as an active player in India’s renewable energy space.
Premier Energies’s financial performance has grown exponentially. For FY24, revenue from operations stood at ₹3,143 crore, up from ₹1,428 crore for the previous fiscal year. This enviable financial position will attract hordes of investors to its IPO.
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Market Outlook and Investment Considerations
The solar energy market in India is set up for greater growth driven by government initiatives and the increasing demand for renewable energy sources. Given Premier Energies’ strong manufacturing capacity and growth plans, the company is well-positioned to take advantage of these trends. The recent anchor investment round was a solid endorsement of Premier Energies and the solar industry.
In considering an investment in Premier Energies, potential investors should consider the company’s stage of growth, and the company’s growth focus is enough to create demand for solar energy solutions in India. With its strong track record of performance, and a clear vision focused on future growth, Premier Energies is a compelling investment opportunity in renewable energy.
Conclusion
As Premier Energies progresses towards its IPO, the company has shown that it can attract significant anchor investments, indicating its potential in the fast-growing solar energy market. Investors should watch this IPO closely as it represents an important opportunity to participate in the growth of one of India’s leading solar energy companies.
People May Ask
When will Premier Energies’ IPO be open for public subscription?
The IPO will open on August 27, 2024, and close on August 29, 2024.
How much did Premier Energies raise from anchor investors?
Premier Energies raised ₹846 crore from anchor investors.
Who are the major anchor investors in Premier Energies’ IPO?
Major anchor investors include Nomura Funds, Abu Dhabi Investment Authority, HDFC Mutual Fund, ICICI Prudential Mutual Fund, Axis Mutual Fund, and Kotak Mutual Fund, among others.
What is the price band for Premier Energies’ IPO?
The price band for the IPO is set between ₹427 and ₹450 per share.
How will the proceeds from the IPO be used?
Proceeds will be used to finance the establishment of a 4 GW Solar PV TOPCon Cell and Module manufacturing facility and for general corporate purposes.
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