He demand The driving force behind the issue was institutional investors, whose category was registered 160 times, followed by non-institutional investors with 47.65 times. The retail part of the issue was registered 6.6 times.
GMP from Premier Energy
In the unlisted market, the company’s shares are trading at a GMP of Rs 390, indicating a premium of 87% over the issue price.
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 Analysis
Most analysts advised investors to subscribe to the IPO as the company has a diversified portfolio. customer “At a higher price band, PEL commands an EV/Sales multiple of 4.8x, which looks attractive considering the current valuation of a single-listed pair (which is loss-making). Hence, we assign a SUBSCRIBE rating for the issue,” Choice Broking said.
Other details
The company proposes to use the net proceeds for investment in its subsidiary, Premier Energies Global, to partially fund the establishment of a 4 GW TOPCon solar PV cell and 4 GW TOPCon solar PV module manufacturing facility in Hyderabad, and the remainder 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 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 filing of the RHP, the company has five manufacturing facilities, all located in Hyderabad, and operates through eight subsidiaries in India and abroad. India’s module manufacturing capacity reached approximately 72 GW by FY24 and while its current solar cell manufacturing capacity stands at 8.1 GW, it is also poised for exponential growth in the future.
India’s strong commitment to renewable energy, ambitious targets and favourable regulatory framework have attracted substantial investment in solar energy 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.
box Investment bankingJP Morgan and ICICI Securities are acting as lead managers for the issue.
(Disclaimer: The recommendations, suggestions, views and opinions of the experts are their own and do not represent the views of Economic Times)
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