Premier Energies IPO subscribed over 74 times on last day of bidding, QIBs steal the show; Latest GMP here

Premier Energies IPO: The initial public offering (IPO) of integrated solar cell and solar panel manufacturer Premier Energies Ltd was subscribed over 74 times on the third and last day of bidding today, according to BSE data. The mainboard IPO of the Hyderabad-based company opened for subscription on Tuesday, August 27, 2024 and closed on Thursday, August 29, 2024.

Premier Energies IPO offers 62,897,777 shares shares as part of the public issue. The company reserved up to 50 per cent shares for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors (NII), and 35 per cent for retail investors. Additionally, employees can avail a discount of ₹22 per equity share.

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

Premier Energies IPO Subscription Status

On the third and last day of bidding, Premier Energies IPO was subscribed 74.38 times. The portion reserved for QIBs was subscribed the highest at 216.67 times, the portion reserved for NIIs was booked 50.04 times, and the portion reserved for retail investors was booked 7.69 times. The employees' portion was booked 11.43 times. The IPO received 3,32,02,62,297 share applications against 4,46,40,825 shares offered on Thursday.

According to BSE data, Premier Energies IPO subscription status was 6.61 times on the second day of the issue. The initial share sale received bids for 29,48,83,545 shares against 4,46,40,825 on offer on the second day. On the first day of bidding, the mainboard issue was subscribed 2.17 times. 

Also Read: Premier Energies IPO ends today: 10 key things to know from RHP before subscribing

Premier Energies IPO Details

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 (OFS) of 3.42 crore shares aggregating to ₹1,539.00 crore.

In the OFS, South Asia Growth Fund II Holdings LLC (SAGF II) will divest 2.68 crore equity shares, South Asia EBT Trust will sell 1,72,800 shares, and promoter Chiranjeev Singh Saluja will offload 72 lakh shares.

Currently, the company's promoters hold a 72.23 per cent stake, while the public owns 26.12 per cent, including the shares held by SAGF II. Additionally, 1.65 per cent of shares are held by employee trusts.

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. 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.

Also Read: Premier Energies IPO booked 6.61x on Day 2, NIIs steal the show. Check GMP, key dates, review. Apply or not?

Premier Energies Company Details

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.

Premier Energies has 29 years of experience as a manufacturer of integrated solar cells and solar modules, with an annual installed capacity of 2 GW for solar cells and 4.13 GW for solar modules. The company operates five manufacturing facilities.

The company proposes to utilize the net proceeds, being the proceeds of the fresh issue towards funding the following:

-Investment in the subsidiary, Premier Energies Global Environment Private Limited, for part-financing the establishment of a four GW Solar PV TOPCon Cell and four GW Solar PV TOPCon Module manufacturing facility in Hyderabad

-General corporate purposes

Also Read: IPO Review: Premier Energies IPO versus ECOS Mobility IPO. Which one should you subscribe?

Premier Energies IPO GMP today

The Premier Energies IPO grey market price is +421. According to investorgain.com, this indicates that Premier Energies' share price was trading at a premium of ₹421 in the grey market.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Premier Energies shares was ₹871 apiece, which is 93.56 per cent higher than the IPO price of ₹450. 'Grey market premium' indicates investors' readiness to pay more than the issue price.