Premier Energies IPO Day 3: GMP, subscription status, review, other details. Should you subscribe?

Premier Energies IPO: The initial public offering (IPO) of integrated solar cell and solar panel manufacturer Premier Energies Ltd has been receiving strong demand from investors as seen in the subscription status data. Premier Energies IPO opened for subscription on August 27 and will end today.

Premier Energies IPO has been heavily oversubscribed and today is the last day of the bidding.

Premier Energies is a prominent player in integrated solar cell and module manufacturing and has shown impressive growth and financial performance over its 29-year history. Given the reasonable valuations against its peers, most analysts have suggested subscribing to the issue.

Let us look at the Premier Energies IPO subscription status, GMP and review:

Premier Energies IPO Subscription Status

Premier Energies IPO has been subscribed 74.74 times so far on Thursday, the third and the last day of the bidding process. The issue received bids for 329.60 crore equity shares against 4.46 crore shares on offer, according to data available on NSE till 16:15 pm.

The retail category saw a subscription of 7.05 times, while Non-institutional investors' quota was subscribed by 50.65 times. The qualified institutional buyers (QIBs) portion received a subscription of 212.42 times, and the employee portion was subscribed 10.66 times so far.

Premier Energies IPO GMP

Premier Energies shares are commanding a heft premium in the unlisted market. Premier Energies IPO GMP today, or grey market premium today, is ₹397 per share, according to stock market observers. This indicates that Premier Energies shares are trading at ₹846 apiece in the grey market, a premium of 88% to the issue price of ₹450 per share.

Should you subscribe Premier Energies IPO?

As of March 31, 2024, Premier Energies stands as the second-largest integrated solar manufacturer in India, with an annual installed capacity of 2 GW for solar cells and 4.13 GW for solar modules. For FY24, the company reported revenues of ₹3,143.7 crore, displaying a CAGR of 105% from FY22. Its order book was valued at ₹5,926.5 crore as of July 31, 2024. 

Most analysts have assigned a ‘Subscribe’ rating to Premier Energies IPO for long term investment.

“The company is valued at a PE ratio of 82.1x on the upper price band based on FY24 earnings, which is reasonable compared to its peers. Given its strategic investments, strong financial recovery, and substantial order book, the company is well-positioned to capitalize on growth opportunities in the solar energy sector. Therefore, we recommend a “Subscribe” rating for medium to long-term investment,” BP Equities siad.

Geojit Financial Services is of the view that at the upper price band of ₹450, Premier Energies is trading at a P/E ratio of 88x for FY24, which seems expensive.

“However, considering its extensive experience in module and cell manufacturing, backward integration strategies, export market exposure, and domestic manufacturing opportunities supported by various government policies and the China Plus One strategy, we assign a “Subscribe” rating for medium to long-term investment,” said the brokerage firm.

Premier Energies IPO Details

Premier Energies IPO opened for subscription on Tuesday, August 27, and closes today, August 29. The IPO allotment is expected to be finalized on August 30 and the IPO listing date is September 3. Premier Energies shares will be listed on both, BSE and NSE.

Premier Energies IPO price band is ₹427 to ₹450 per share. The company aims to raise ₹2,830.40 crore from the IPO which is a combination of fresh issue of 2.87 crore shares worth ₹1,291.40 crore and offer for sale of 3.42 crore shares aggregating to ₹1,539.00 crore.

Kotak Mahindra Capital, J.P. Morgan India and ICICI Securities are the book running lead managers of the Premier Energies IPO, while Kfin Technologies Limited is the IPO registrar.

Read all IPO news here