The Indian markets might have had a lackluster day due to a lack of significant global cues, especially with the U.S. markets closed on Monday. However, there was no shortage of action for those eyeing new listings. Premier Energies stole the spotlight with its impressive debut, making a mark as the latest entrant in the renewable energy space. Investors who were fortunate enough to get an allotment in the IPO are certainly smiling, as the company listed at a whopping 120% premium on Tuesday, September 3.
Premier Energies began trading on the National Stock Exchange (NSE) at Rs 990 and on the Bombay Stock Exchange (BSE) at Rs 991, significantly above its issue price of Rs 450 per share. The listing was one of the most anticipated events, driven by strong demand in the grey market. The Grey Market Premium (GMP) for the stock had surged dramatically after robust bidding during the IPO phase, signaling a listing pop of approximately 108% for investors.
The buzz around Premier Energies IPO was fueled by reasonable valuations and the company’s strategic positioning as India’s second-largest integrated solar cell and module manufacturer. Investor demand was bolstered by the company’s potential to capitalize on the growing renewable energy market in India, making it an attractive investment opportunity.
The IPO witnessed overwhelming demand, being subscribed 74.38 times overall. The Qualified Institutional Buyers (QIB) segment saw a stellar subscription of 216.67 times, while Non-Institutional Investors (NII) subscribed 50.04 times. Even retail investors showed strong interest, with the retail category subscribed 7.69 times.
Premier Energies’ Rs 2,830 crore IPO was open for bidding between August 27 and August 29, with shares priced between Rs 427 and Rs 450 each. The offer included a fresh issue of 2.87 crore shares worth Rs 1,291.4 crore and an offer-for-sale (OFS) of up to 3.42 crore shares by promoters and existing shareholders, amounting to Rs 1,539 crore.
The proceeds from the IPO are earmarked for strategic investments, including part-financing a state-of-the-art 4 GW Solar PV TOPCon Cell and 4 GW Solar PV TOPCon Module manufacturing facility in Hyderabad. TOPCon, or Tunnel Oxide Passivated Contact, represents the next generation of solar technology, enhancing efficiency and performance.
Premier Energies stands out as a leading integrated solar cell and panel manufacturer in India, with a diverse product portfolio that includes solar cells, solar modules, monofacial and bifacial modules, EPC (Engineering, Procurement, and Construction) solutions, and O&M (Operations & Maintenance) solutions. All five of its manufacturing units are located in Hyderabad, Telangana.
Despite the strong listing, the stock experienced some profit booking and drifted from its day’s high, trading near the day’s low of Rs 870, down by 11.87%. The company’s market capitalization stands at approximately Rs 40,000 crore.
Premier Energies’ successful listing underscores the growing investor appetite for renewable energy plays in India. With its strategic investments in next-gen solar technology and a robust market position, the company is well-placed to ride the green energy wave. Investors will be keenly watching how the stock performs in the coming days as Premier Energies navigates the competitive landscape of the solar industry.
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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.
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