The initial public offering (IPO) for ACME Solar Holdings Limited, a major player in India’s renewable energy sector, opened for subscription on November 6, 2024. The IPO will remain open until November 8, giving investors three days to consider this investment opportunity. ACME Solar aims to raise ₹2,900 crore through this IPO, which includes both a fresh issue and an offer for sale (OFS). This fundraising will support the company’s ongoing renewable energy projects and help expand its operations.
ACME Solar has set the price range for its IPO at ₹275 to ₹289 per share. Investors can bid within this range, with the final price determined after the close of the IPO based on investor demand. The IPO is structured with a fresh issue of ₹2,395 crore and an offer for sale of ₹505 crore provided by the company’s promoter, ACME Cleantech Solutions Private Ltd. This combined structure offers potential investors new shares along with an opportunity to buy existing ones. The minimum order quantity is 51 shares, meaning that investors must purchase at least 51 shares in one order. This structure is designed to make the IPO accessible to a broader group of investors.
The Grey Market Premium (GMP) is an informal indicator of how an IPO might perform on its listing day. As of now, the GMP for ACME Solar is approximately ₹10, meaning shares are trading at ₹10 above the upper end of the price band (₹289) in the grey market. This suggests an estimated listing price of around ₹299 per share, a 3.46% increase from the highest IPO price band. However, investors should note that GMP can fluctuate, and it’s essential to consider it as only one indicator of market sentiment.
The IPO’s shares are divided among various types of investors. Not less than 75% of the shares are reserved for qualified institutional buyers (QIBs), including institutional investors such as mutual funds and insurance companies. Around 15% of the shares are set aside for non-institutional investors (NIIs), who are individual or corporate investors with larger bids. Approximately 10% of the shares are reserved for retail investors, allowing smaller investors to participate in the IPO. ACME Solar has also reserved a portion of equity shares worth up to ₹10 crore for employees.
On the first day of the IPO, ACME Solar Holdings received positive responses from various investors. The IPO was subscribed 3% overall. Retail investors showed strong interest, with their portion subscribed at 15%, while non-institutional investors filled 1% of their allocated shares. The employee portion has also received 5% subscription. However, qualified institutional buyers (QIBs) are yet to start subscribing heavily, and their interest will likely be seen in the final two days of the IPO.
ACME Solar Holdings ranks among India’s top renewable energy providers. The company focuses on building and operating large-scale solar power plants across India. With its in-house engineering, procurement, and construction (EPC) division and a dedicated operations and maintenance (O&M) team, ACME Solar ensures quality and efficiency in its projects. The company earns revenue by selling electricity to clients, including state and central government-backed entities.
Important Dates to Remember
- IPO Open Date: November 6, 2024
- IPO Close Date: November 8, 2024
- Basis of Allotment: November 11, 2024
- Refund Initiation: November 11, 2024
- Shares will be credited to Demat accounts on November 12, 2024.
- IPO Listing Date: November 13, 2024
The ACME Solar Holdings IPO provides an exciting opportunity for investors, particularly those interested in the growing renewable energy sector. However, it’s essential for investors to research thoroughly, review financials, and consult a financial advisor to make an informed decision. While the grey market premium may indicate initial interest, market factors, and demand closer to the listing day will play a critical role in the stock’s performance.
