Stellar Start: Australian Premium Solar (India) lists at 159% premium at Rs 140 per share on the NSE SME and hits the upper circuit

Australian Premium Solar (India) Limited manufactures monocrystalline and polycrystalline solar modules and provides engineering, procurement, and construction services for residential, agricultural, and commercial applications, debuted on the Indian stock market today.

Upon its debut on the NSE, the stock opened at Rs 140 per share, reflecting a 159% premium compared to the final issue price of Rs 54 per share. Furthermore, the stock has hit the upper circuit price limit of 5%, and currently, no sellers are willing to sell the stock, ultimately leaving the buyers disappointed. Currently, the stock is at Rs 147 per share and the market capitalisation of the company stands at Rs 290 crore.

IPO Proceeds

The company intends to use the net proceeds from the Fresh Issue for Funding capital expenditure, working capital requirement, and general corporate purposes.

Company profile

Australian Premium Solar (India) Limited manufactures monocrystalline and polycrystalline solar modules and provides engineering, procurement, and construction (EPC) services for residential, agricultural, and commercial applications.

The company manufactures two types of solar panels:

Monocrystalline solar panels: The solar cells used in monocrystalline solar panels are more efficient and have a darker, uniform appearance due to their monocrystalline structure, allowing the busbars (copper-coated thin ribbons) to be placed more strategically without significantly detracting from the appearance.

Polycrystalline solar panels: Solar cells used in polycrystalline solar panels have a blue or speckled appearance due to their multicrystalline structure; busbars may need to be positioned to accommodate the less uniform appearance of these cells.

The company also provides installation services for solar panels and solar pumps for residential and industrial end users. At the same time, it also offers installation services for solar pumps for agricultural end users.

Subscription details: 

On January 15, 2024, the final day of the IPO window, the IPO witnessed an impressive response, with a subscription rate of 464.19 times. The public issue received remarkable interest, with the retail category being subscribed 535.77 times, the QIB category achieving a subscription rate of 107.02 times, and the NII category reaching a subscription rate of 772.87 times.

The company attracted Rs 7.99 crore from various anchor investors by allocating 14.80 lakh equity shares at Rs 54 per share. The complete lock-in period for these anchor investors ends on May 30, 2024.

The IPO price range was set between Rs 51 and Rs 54, with a face value of Rs 10 per share and a lot size of 2000 shares. The total size of the company’s IPO was Rs 28.08 crore, and the final share issue price was fixed at Rs 54 each.

Financial Performance:

Conclusion: 

The key dilemma for investors lies in whether to hold onto their shares. Those who applied for the IPO solely intending to capitalise on listing gains have earned an impressive multibagger 172% return over its final issue price on the listing day itself. Investors who applied for the IPO purely for listing gains may consider closing their positions. Conversely, investors with a higher risk tolerance might opt to hold onto their shares for the medium to long term, as this strategy could potentially yield benefits over time.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.