The Premier Energies IPO has garnered significant attention in the market due to its substantial offering and the company’s strategic position in the solar energy sector. Scheduled to open for subscription from August 27, 2024, to August 29, 2024, this IPO presents a promising investment opportunity. This article delves into the key details, subscription information, and important dates, ensuring you have all the information needed to make an informed decision.
Premier Energies IPO Details
The Premier Energies IPO is a book-built issue worth ₹2,830.40 crores. It includes a fresh issue of 2.87 crore shares, aggregating to ₹1,291.40 crores, and an offer for sale of 3.42 crore shares, totaling ₹1,539.00 crores. The IPO price band is set between ₹427 and ₹450 per share. The face value of each share is ₹1, and the minimum lot size for application is 33 shares, requiring a minimum investment of ₹14,850. For sNII, the minimum investment is 14 lots (462 shares) amounting to ₹207,900, while for bNII, it is 68 lots (2,244 shares) amounting to ₹1,009,800.
Important Dates for Premier Energies IPO
- IPO Open Date: August 27, 2024
- IPO Close Date: August 29, 2024
- Basis of Allotment: August 30, 2024
- Initiation of Refunds: September 2, 2024
- Credit of Shares to Demat Account: September 2, 2024
- Premier Energies IPO Listing Date: September 3, 2024
Premier Energies Company Overview
Incorporated in April 1995, Premier Energies Limited is a leading manufacturer in the solar energy sector, specializing in integrated solar cells and solar panels. The company’s diverse product portfolio includes solar modules, monofacial and bifacial modules, EPC solutions, and O&M services. Premier Energies operates five manufacturing units, all located in Hyderabad, Telangana, India.
Premier Energies boasts a robust clientele, including renowned names like NTPC, TATA Power Solar Systems Limited, Panasonic Life Solutions Private Limited, and several others. As of July 31, 2024, the company reported an impressive order book of ₹59,265.65 million. This includes ₹16,091.14 million for non-DCR solar modules, ₹22,140.60 million for DCR solar modules, ₹18,911.18 million for solar cells, and ₹2,122.72 million for EPC projects.
Financial Performance
The financials of Premier Energies demonstrate its growth trajectory:
- For the year ended March 31, 2023: The company reported revenue of ₹1,463.21 crore, marking a significant increase from ₹767.03 crore in the previous year. However, the company had a slight loss with a profit after tax (PAT) of ₹-13.34 crore.
- For the year ended March 31, 2024: The company reported revenue of ₹3,171.31 crore, with a PAT of ₹231.36 crore, showcasing a turnaround and a strong growth pattern.
Key performance indicators include a Return on Equity (ROE) of 43.73%, Return on Capital Employed (ROCE) of 25.65%, and a debt-to-equity ratio of 1.86. These figures highlight Premier Energies’ efficient management and robust financial health.
Subscription Status
On the first day of subscription (August 27, 2024), the Premier Energies IPO was subscribed 2.17 times. This includes 1.91 times in the retail category, 0.04 times in the Qualified Institutional Buyers (QIB) category, and a significant 5.53 times in the Non-Institutional Investors (NII) category. The overwhelming response, especially in the NII segment, underscores investor confidence in the company’s future growth prospects.
Anchor Investors
Premier Energies raised ₹846.12 crore from anchor investors on August 26, 2024, one day before the IPO opened for the general public. This pre-IPO fundraising from anchor investors speaks volumes about the market’s anticipation and trust in Premier Energies’ business model and future growth potential.
Promoters and Shareholding
The promoters of Premier Energies are Surender Pal Singh Saluja and Chiranjeev Singh Saluja. Pre-IPO, the promoters held a 72.22% stake, which will be reduced to 66.03% post-IPO. This dilution of stake is aligned with the company’s goal to raise funds for expansion and strengthen its market presence.
Objects of the Issue
The proceeds from the Premier Energies IPO will be primarily utilized for:
- Investment in the subsidiary, Premier Energies Global Environment Private Limited, to partially finance the establishment of a 4 GW Solar PV TOPCon Cell and 4 GW Solar PV TOPCon Module manufacturing facility in Hyderabad, Telangana, India.
- General corporate purposes.
Listing and Trading
The shares of Premier Energies will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The tentative listing date is September 3, 2024. Investors are advised to track the allotment status and listing details closely to plan their trading strategies.
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Conclusion: Should You Invest in Premier Energies IPO?
Given the company’s strong market position, impressive order book, and strategic expansion plans, the Premier Energies IPO presents a compelling investment opportunity. The company’s focus on solar energy aligns with the global shift towards renewable energy, making it a promising long-term investment. However, potential investors should consider the issue’s aggressive pricing and assess their risk appetite before investing.
Premier Energies IPO is poised to be a significant player in the solar energy market. With the backing of strong financials, a reputable management team, and strategic expansion initiatives, Premier Energies is well-positioned for growth. Investors looking for long-term growth potential may consider this IPO as a valuable addition to their portfolio.