Premier Energies IPO : Today, August 27, at D-Street, Premier Energies, a producer of solar cells and modules, is set to launch its initial public offering. With a face value of ₹1, each equity share in the IPO would be priced between ₹427 and ₹450. The IPO is scheduled to end on August 29. Anchor investors have contributed ₹846 crore to the company.
15% of the shares in the Premier Energies IPO are reserved for non-institutional investors (NII), and up to 50% of the shares are reserved for qualified institutional buyers (QIB). Retail investors will receive a portion of the offer of 35%. An employee discount of ₹22 per equity share is available.
Integrated solar cell and panel production is the primary emphasis of Premier Energies Limited, which was founded in April 1995. Solar cells, monofacial and bifacial modules, EPC and O&M solutions, and solar modules make up the company’s product portfolio. Hyderabad, Telangana, India is home to the company’s five manufacturing plants.
Websol Energy System Ltd. is the only comparable company that the company has listed in the red herring prospectus (RHP).
The company’s operating revenue grew between FY21 and FY23 at a compound annual growth rate (CAGR) of 42.71%. The revenue reached ₹3,143 crore in FY24, a 120% increase. In addition, the company turned a profit of ₹231 crore in FY24, a considerable improvement over the ₹13.3 crore deficit in the year before.
Subscription status for Premier Energies IPO
It is currently 11:12 IST. According to BSE data, on the first bidding day, 38% of subscribers had signed up for the public issue, 46% had reserved the retail component of the book build issue, 68% had signed up for the NII segment, and the QIB portion had not yet been reserved. 92% of the employee part has been reserved.
Review of Premier Energies’ IPO
Securities Ltd. Canara Bank
According to the brokerage, as of March 31, 2024, Premier Energies was the second-ranked company in India for both integrated solar cell and solar module manufacturing as well as annual installed capacity. For the first three months of FY2025, Premier Energies Ltd reported operational revenue of ₹16,573.67 million. Its top 5 clients contributed for 65.20 percent of this revenue. This concentration indicates a significant reliance on these ties, underscoring their importance to the company’s overall financial success.
The company’s offering for FY2024 is valued at 64.94 times P/EPS, but the annualized P/E for FY2025 seems to have dropped to 18.97 times. This is because of the company’s strong revenue potential predicted from the orderbook and its intentions for price-neutral expansion. Since the company is losing money, we are unable to compare its valuation with peers,” the brokerage stated.
Securities Limited by Reliance
The brokerage claims that the company has a long history in the solar module manufacturing sector and is skilled in the production of solar cells. Its 2.0 GW yearly installed capacity would make up 28% of India’s total capacity in FY24. PEL has established itself as the first solar cell producer in India to produce a bifacial monocrystalline Passivated Emitter and Rear Contact (PERC) solar cell in FY22, based on the M10–182 mm x 182 mm shape.
The company boasts a broad clientele, continuous profitability over the past few years, collaborations in a wide range of nations that produce international money, and a healthy order book of ₹5,926 crores. Consequently, the brokerage recommends SUBSCRIBING to the publication.
Details about Premier Energies’ IPO
A new issue of equity shares up to ₹1,291.4 crore and an offer for sale (OFS) by current shareholders of up to ₹3.42 crore shares, or roughly ₹1,539 crore based on the upper band price of ₹450, are included in the initial public offering (IPO).
Promoter Chiranjeev Singh Saluja would discharge 72,00,000 equity shares, South Asia EBT Trust will divest 1,72,800 equity shares, and South Asia Growth Fund II Holdings LLC (SAGF II) will sell 2.68 crore equity shares as part of the offer-for-sale component.
The promoters of the company hold a combined 72.23% of the shares; South Asia Growth Fund II Holdings LLC and the public own 26.12% of the shares; employee trusts control the remaining 1.65% of the shares.
ICICI Securities, JP Morgan, and Kotak Investment Banking are the issue’s book-running lead managers.
Today’s Premier Energies IPO GMP
The gray market pricing for Premier Energies’ IPO is +358%. According to investorgain.com, this shows that the price of Premier Energies shares were selling at a premium of ₹358 on the black market.
Premier Energies’ expected listing price was ₹808 per share, which is 79.56% more than the IPO price of ₹450, taking into account the upper end of the IPO pricing band and the existing premium in the grey market.
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