|
Getting your Trinity Audio player ready...
|
The Indian renewable energy sector is witnessing a surge, and Premier Energies, a leading manufacturer of solar modules and integrated solar cells, is poised to capitalize on this growth.
The company is launching its Initial Public Offering (IPO) tomorrow, seeking to raise a total of ₹2,830.40 crore. Let’s examine the IPO details, the company’s objectives, financial health, and potential future.
Premier Energies IPO Price, Date, Lot Size & More
| Offer Price | ₹427 – ₹450 per share |
| Face Value | ₹1 per share |
| Opening Date | 27 August 2024 |
| Closing Date | 29 August 2024 |
| Total Issue Size (in Shares) | 62,897,777 |
| Total Issue Size (in ₹) | ₹2,830.40 Cr |
| Issue Type | Book Built Issue IPO |
| Lot Size | 33 Shares |
| Listing at | BSE, NSE |
The Premier Energies IPO is a book-built issue, meaning the final price will be determined based on investor demand. The total size of the offering is ₹2,830.40 crore, divided into a fresh issue of ₹1,291.40 crore and an offer for sale (OFS) of ₹1,539 crore by existing shareholders.
The price band for the IPO is set between ₹427 and ₹450 per share. Retail investors can participate by bidding for at least 33 shares, translating to an investment of at least ₹14,850. The allotment is expected on August 30th, and the tentative listing date on the BSE and NSE is September 3rd
Objectives of the Premier Energies IPO
The company plans to utilize the IPO proceeds for two primary purposes:
- Investing in a Solar PV Manufacturing Facility: A significant portion of the funds will be directed towards establishing a 4 GW Solar PV TOPCon Cell and Module manufacturing facility in Hyderabad. This investment will significantly enhance Premier Energies’ production capabilities and solidify its position in the solar energy market.
- General Corporate Purposes: The remaining funds will be allocated for various operational purposes, including administrative expenses, marketing initiatives, potential debt reduction, and strategic growth opportunities. This flexibility allows the company to adapt to market dynamics and invest in areas that maximize shareholder value.
Premier Energies IPO Allocation of Shares
The issue is divided into two parts: a fresh issue and an offer for sale by existing shareholders. Retail investors can bid for a minimum of 33 shares and multiples thereof.
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 33 | ₹14,850 |
| Retail (Max) | 13 | 429 | ₹193,050 |
| S-HNI (Min) | 14 | 462 | ₹207,900 |
| S-HNI (Max) | 67 | 2,211 | ₹994,950 |
| B-HNI (Min) | 68 | 2,244 | ₹1,009,800 |
The minimum investment amount for retail investors is ₹14,850. High-net-worth individuals (HNIs) have specific investment lot sizes and minimum investment amounts depending on their category.
Premier Energies IPO Open, Close, Allotment & Listing Dates
| IPO Open Date | 27th August, 2024 |
| IPO Close Date | 29th August, 2024 |
| Basis of Allotment | 30th August, 2024 |
| Initiation of Refunds | 2nd September, 2024 |
| Credit of Shares to Demat | 2nd September, 2024 |
| Listing Date | 3rd September, 2024 |
Premier Energies Grey Market Premium (GMP):
According to investorgain.com, the current Grey Market Premium (GMP) for Premier Energies shares is ₹330 per share. This suggests that the estimated listing price could be around ₹780, a premium of 73.33% over the issue price. It’s important to remember that GMP is an unofficial indicator, not a guarantee of future performance.
Premier Energies Company Overview
Premier Energies, established in April 1995, has a proven track record in the solar energy space. The company offers a range of products and services, including solar cells, modules, EPC (Engineering, Procurement, and Construction) solutions, and operation and maintenance (O&M) solutions.
They operate five production facilities in India and cater to a diverse clientele, including major players like NTPC and TATA Power Solar Systems Limited. As of July 31, 2024, the company boasts a strong order book of ₹59,265.65 million, showcasing significant demand for its products. Additionally, it has a global footprint, exporting its products to over 20 countries.
Premier Energies Financials
Premier Energies’ financial performance has shown improvement in recent years. As of June 30, 2024, the company’s total assets reached ₹3,735.5 crore, indicating significant growth compared to the previous two years. Revenue for the quarter ending June 2024 was ₹1,668.79 crore, whereas the figures had touched ₹3171.31 on March 2024. [Source: NSE]
More importantly, the company turned profitable in June 2024, with a PAT (Profit After Tax) of ₹198.16 crore, marking a significant turnaround from previous losses. From 2022 onwards, it was making a loss, but this year saw the company’s PAT surge into a positive number of ₹231.36 on March 2024. The net worth also improved to a positive ₹26.96 crore in June 2024. However, the company’s total borrowing has also increased to ₹1,200.16 crore, reflecting increased financial leverage.
Can The 15x15x15 Rule Help You Become a Crorepati?
SWOT Analysis of Premier Energies
| STRENGTHS | WEAKNESSES |
| Strong brand presence and established reputation in the Indian solar energy sector. Diversified product portfolio encompassing various aspects of solar energy solutions. Robust order book and established client base, including major players in the industry. Increased production capacity with the planned 4 GW Solar PV manufacturing facility. | Intense competition in the Indian solar energy market. Fluctuations in raw material prices impact production costs. Changes in government policies or subsidies may affect industry profitability. |
| OPPORTUNITIES | THREATS |
| Growing demand for renewable energy solutions driven by government initiatives and environmental concerns. Expansion into international markets for further growth. Increased focus on research and development to enhance product offerings and efficiency. | Intense competition in the Indian solar energy market. Fluctuations in raw material prices impact production costs. Changes in government policies or subsidies affect industry profitability. |
Conclusion
Premier Energies’ IPO presents an opportunity for investors to participate in the growth of the renewable energy sector. The company’s strong financial performance, expansion plans, and focus on sustainable energy solutions make it an intriguing prospect. However, potential investors should conduct thorough research and consider the inherent risks associated with the industry before making an investment decision.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
I’m Archana R. Chettiar, an experienced content creator with
an affinity for writing on personal finance and other financial content. I
love to write on equity investing, retirement, managing money, and more.
