ACME Solar Holdings IPO: GMP, price band among 5 key things to know before the issue opens tomorrow

ACME Solar Holdings' initial public offer (IPO) will open for subscription on Wednesday, November 6 to raise ₹2,900 crore. This capital raise includes both fresh issue and offer for sale (OFS), with the IPO window closing on November 8.

ACME Solar Price Band and Share Listing Timeline

The IPO price band is set between ₹275 to ₹289 per share. Following the subscription period, share allotment is expected to be finalised on November 11. ACME shares are likely to be listed on the NSE and BSE on November 13, as per the tentative schedule.

ACME Solar Grey Market Premium (GMP)

In the grey market, ACME Solar shares are currently trading at a 9.8% premium over the upper price band. The GMP, an informal trading indicator, offers a sense of anticipated listing performance, though it remains unofficial.

ACME Solar Holdings is a prominent renewable energy company in India, focusing on generating electricity from wind and solar sources. As one of the largest renewable energy providers in the country, ACME is involved in the development, construction, ownership, operation, and maintenance of large-scale projects. The company generates revenue by selling electricity, primarily to government-supported plants at both state and central levels.

IPO Objective: Reducing debt and corporate funding

Proceeds from the IPO will be allocated towards paying down certain debts incurred by ACME’s subsidiaries. Additionally, a portion of the funds will be directed toward general corporate needs, supporting the company’s ongoing projects and operations.

Investment details for retail and NII investors

For retail investors, the minimum application size is 51 shares. At the upper price band of ₹289 per share, this would require an investment of ₹14,739. For non-institutional investors (NIIs), minimum investments vary: small NIIs must invest at least ₹2,06,346, while large NIIs need a minimum investment of ₹10,02,252.

Lead managers and registrar

The issue’s lead book-running managers include Nuvama Wealth Management, ICICI Securities, JM Financial, Kotak Mahindra Capital Company, and Motilal Oswal Investment Advisors. Kfin Technologies will act as the registrar for the IPO, overseeing allotment and other administrative aspects.