Premier Energies, known for its solar cells and panels, is launching its initial public offering (IPO) on the Indian stock market from August 27 to August 29. This marks the company’s first public offering of shares.
IPO Details
- Price Range: ₹427 to ₹450 per share.
- Amount Raised from Anchor Investors: ₹846 crore.
- IPO Structure: Includes a fresh issue of new shares and an offer for sale by existing shareholders.
Founded in April 1995 and headquartered in Hyderabad, Telangana, Premier Energies specializes in solar products, including monofacial and bifacial modules. The company also offers Engineering, Procurement, and Construction (EPC) services and Operations and Maintenance (O&M) solutions. Premier Energies operates five manufacturing plants in Hyderabad.
The IPO has seen a positive response. On the first day, it was subscribed 2.10 times, with the following breakdown:
- Retail Portion: Subscribed 1.81 times.
- Non-Institutional Investors (NII): Subscribed 5.38 times.
- Qualified Institutional Buyers (QIB): Subscribed 4% of the allocated portion.
- Employee Portion: Subscribed 3.16 times.
The IPO involves issuing new equity shares worth up to ₹1,291.4 crore and an offer for sale of up to 3.42 crore shares by existing shareholders, totaling approximately ₹1,539 crore at the upper end of the price range.
In the grey market, Premier Energies shares are trading at a premium of ₹358 over the IPO price. This suggests an expected listing price of around ₹808, about 79.56% higher than the maximum IPO price of ₹450.
Investors should carefully consider their investment objectives, risk tolerance, and the company’s fundamentals before applying for Premier Energies’ IPO. Despite the positive initial subscription data and grey market premium, thorough research and due diligence are essential.