Considering the upper price band of Rs 450, the stock is trading at a solid premium of 74.67% over the issue price.
However, it is important to note that grey market premiums are simply indicators of how a company’s shares are perceived in the non-listed market and are subject to rapid change.
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 million shares by the selling shareholders.
Under the OFS component, South Asia Growth Fund II Holdings LLC will sell 2.68 million equity shares, South Asia EBT Trust will sell 1,72,600 equity shares and promoter Chiranjeev Singh Saluja will sell 72,00,000 equity shares. The company proposes to use the net proceeds to invest in its subsidiary, Premier Energies Global, to partly fund the establishment of a 4 GW TOPCon solar PV cell manufacturing plant and 4 GW TOPCon solar PV module manufacturing plant in Hyderabad, with the remainder to be allocated for general corporate purposes. Premier Energies was India’s second-largest integrated player at the end of FY24, with 2 GW of annual installed capacity for cell manufacturing and 4.13 GW of annual installed capacity for module manufacturing. It is also the largest Indian exporter of solar cells to the US for FY24. As of the date of filing of RHP, the company operates five manufacturing plants in Hyderabad and conducts operations through eight subsidiaries both in India and abroad.
India’s module manufacturing capacity reached approximately 72 GW by FY24. While its current solar cell manufacturing capacity stands at 8.1 GW, the sector is poised for exponential growth in the future.
India’s strong commitment to renewable energy, ambitious targets and favourable regulatory framework have attracted substantial investments in solar energy projects, positioning the country as a key player in the global solar market.
The company’s operating revenue grew at a compound annual growth rate (CAGR) of 42.71 per cent between FY21 and FY23. In FY24, its revenue grew 120 per cent to Rs 3,143 crore. The company posted a profit of Rs 231 crore in FY24, compared to a loss of Rs 13.3 crore in the previous year.
Kotak Investment Banking, JPMorgan and ICICI Securities are the lead managers for the issue.
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