The IPO consists of a fresh issue of equity shares totalling up to Rs 1,291 crore and an Offer for Sale (OFS) of up to 3.42 crore shares by the selling shareholders, amounting to nearly Rs 1,539 crore as per the upper price band of Rs 450.
Under the offer for sale component, South Asia Growth Fund II Holdings LLC will sell 2.68 million equity shares and South Asia EBT Trust will sell 172,600 equity shares and promoter Chiranjeev Singh Saluja will sell 72,00,000 equity shares.
The company proposes to utilise the net proceeds of the fresh issue for an investment of Rs 1,168 crore in its subsidiary, Premier Energies Global Environment Private Limited (PEGEPL) to partially fund establishment of 4 GW TOPCon solar PV cell and 4 GW TOPCon solar PV module manufacturing plant in Hyderabad, Telangana and the remainder for general corporate purposes.
Premier Energies is India’s second-largest integrated player as of the end of FY24, with 2 GW of annual installed capacity for cell manufacturing along with 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 RHP filing, the company has five manufacturing facilities, all located in Hyderabad, and conducts operations through eight subsidiaries in India and abroad. India’s module manufacturing capacity reached approximately 72 GW in FY24 and while its current solar cell manufacturing capacity stands at 8.1 GW, it is also poised for exponential future growth. India’s strong commitment to renewable energy, ambitious targets, and favorable regulatory framework have attracted significant investments in solar power projects, positioning India as a key player in the global solar market.
The company’s revenue from operations grew at a compound annual growth rate (CAGR) of 42.71 per cent between FY21 and FY23. Its FY24 revenue grew 120 per cent to Rs 3,143 crore. The company posted a profit of Rs 231 crore in FY24, against a loss of Rs 13.3 crore a year ago.
Kotak Investment Banking, JP Morgan and ICICI Securities are acting as lead managers for the issue.
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