The much-anticipated Premier Energies IPO kicks off today, marking a significant milestone for the solar cell and module manufacturer. Running from August 27 to August 29, the IPO offers shares priced between ₹427 and ₹450 per equity share, with a face value of ₹1. Investors have shown keen interest, as evidenced by the company’s successful raising of ₹846 crore from anchor investors ahead of the public offering. This strong early backing highlights the company’s solid growth trajectory and financial turnaround in recent years.
Premier Energies IPO: Allocation Details and Investor Segments
In the Premier Energies IPO, the shares have been carefully allocated to cater to different types of investors. A significant 50% of the shares are reserved for Qualified Institutional Buyers (QIBs), a segment that often drives market confidence in an IPO. Non-Institutional Investors (NIIs) are allocated 15% of the shares, while the remaining 35% is set aside for retail investors, who form a crucial part of the public offering. Additionally, employees of Premier Energies are being offered a discount of ₹22 per equity share, making the IPO an attractive proposition for those within the company.
Premier Energies Limited, founded in April 1995, has grown to become a prominent player in the renewable energy sector. The company specializes in the manufacture of integrated solar cells and panels, offering a diverse range of products, including monofacial and bifacial solar modules. Their expertise extends to Engineering, Procurement, and Construction (EPC) as well as Operations and Maintenance (O&M) solutions. The company’s five state-of-the-art manufacturing facilities, all located in Hyderabad, Telangana, underscore its commitment to innovation and quality.
Premier Energies IPO: Financial Performance and Market Position
Premier Energies’ strong financial performance leading up to the IPO has been a key factor in attracting investor interest. The company’s operating revenue has seen impressive growth, with a compound annual growth rate (CAGR) of 42.71% from FY21 to FY23. This upward trajectory continued into FY24, where the company reported a revenue surge of 120% to ₹3,143 crore. This growth was accompanied by a remarkable turnaround in profitability, with Premier Energies posting a profit of ₹231 crore, a significant recovery from a loss of ₹13.3 crore in the previous year.
As of the first day of bidding, the Premier Energies IPO has garnered strong interest across different investor segments. According to data from the Bombay Stock Exchange (BSE) as of 12:39 IST, the public issue was subscribed 79%. The retail investor segment was particularly active, with a subscription rate of 89%, while the NII segment saw a subscription rate of 1.56 times. The QIB portion, although not fully booked at the time, is expected to see increased activity as the IPO progresses. The employee portion has also seen significant interest, with a subscription rate of 1.81 times.
Premier Energies IPO: Expert Reviews and Future Prospects
The Premier Energies IPO has received positive reviews from various brokerage firms, which have highlighted the company’s strong market position and growth potential. Canara Bank Securities Ltd noted that as of March 31, 2024, Premier Energies ranked second in India in terms of annual installed capacity for integrated solar cell and module manufacturing. The company’s financial performance in the first quarter of FY2025 has also been impressive, with operating revenue reaching ₹16,573.67 million. However, the brokerage also pointed out the company’s dependency on its top five clients, which accounted for 65.20% of this revenue.
Reliance Securities Ltd has also provided a favorable review of the Premier Energies IPO, emphasizing the company’s extensive experience in solar module manufacturing and solar cell production. With an annual installed capacity of 2.0 GW, Premier Energies is poised to represent 28% of India’s total solar manufacturing capacity in FY24. The company’s innovative approach, including being the first in India to produce a bifacial monocrystalline Passivated Emitter and Rear Contact (PERC) solar cell, has positioned it as a leader in the industry.
The Premier Energies IPO is structured to include a fresh issue of equity shares worth up to ₹1,291.4 crore and an Offer for Sale (OFS) of up to 3.42 crore shares by existing shareholders, which amounts to approximately ₹1,539 crore at the upper price band of ₹450. The OFS will see significant divestments from South Asia Growth Fund II Holdings LLC and other key stakeholders.
In conclusion, the Premier Energies IPO presents a compelling opportunity for investors, driven by the company’s strong financial performance, market leadership, and strategic growth plans. As the IPO continues, it is expected to see robust participation from both institutional and retail investors, making it one of the most talked-about public offerings of the year.
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