Premier Energies IPO Sees 74.86x Subscription on Day 3

Premier Energies Limited’s initial public offering (IPO) was open for subscription from August 27, 2024, to August 29, 2024. Allotment for the IPO is expected to be finalised on August 30, 2024, with the stock to be listed on the BSE and NSE on September 3, 2024.

The IPO, valued at ₹2,830.40 crore, includes a fresh issue of 28,697,777 shares worth ₹1,291.40 crore and an offer for sale of 3,42,00,000 shares worth ₹1,539.00 crore. The price band for the IPO is ₹427 to ₹450 per share, with a minimum application lot size of 33 shares. Retail investors need to invest a minimum of ₹14,850.

Kotak Mahindra Capital Company Limited, J.P. Morgan India Private Limited and ICICI Securities Limited are the book-running lead managers, while Kfin Technologies Limited is the registrar for the issue.

The funds raised will be used primarily to invest in Premier Energies Global Environment Private Limited for establishing a 4 GW Solar PV TOPCon Cell and a 4 GW Solar PV TOPCon Module manufacturing facility in Hyderabad, Telangana and also for general corporate purposes.

Day Wise Subscription

• Day 1: On August 27, 2024, the IPO was subscribed to 2.16x. QIBs subscribed 0.04x, NIIs subscribed 5.53x, and retail investors subscribed 1.91x.
• Day 2: On August 28, 2024, Premier Energies IPO was subscribed 6.72x. QIBs subscribed 1.37x, NIIs subscribed 19.35x, and retail investors subscribed 4.37x.
• Day 3: On the last day, Premier Energies IPO was subscribed 74.86x. QIBs subscribed 212.42x, NIIs subscribed 50.80x, and retail investors subscribed 7.24x.

Grey Market Premium

Premier Energies Limited IPO’s last GMP was ₹380. With a price band of ₹450, the estimated listing price of the Premier Energies IPO is ₹830 (cap price + today’s GMP). The expected percentage gain/loss per share is 84.44%.

About Premier Energies Limited

Premier Energies Limited is engaged in the manufacturing of bifacial monocrystalline PERC solar cells using M10 wafers (182mm x 182mm) and assembles them into modules. It also produces solar modules with advanced technologies, such as monocrystalline PERC and TOPCon, offering various cell sizes, power outputs, and formats, including custom solutions.

Premier Energies offers customised solar products and executes comprehensive EPC projects, such as ground-mounted, rooftop, floating, canal bank, canal top, and hybrid power systems. Additionally, the company provides operation and maintenance services for these projects and operates a 2 MW solar power plant in Jharkhand, India.

As of August 20, 2024, the company runs 5 manufacturing units in Hyderabad, Telangana, with a combined annual capacity of 2 GW for solar cells and 4.13 GW for solar modules.

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.