Premier Energies IPO listing: Shares of Premier Energies made a stellar debut on the bourses today. It listed at ₹990 on NSE, a premium of 120 percent from its IPO price of ₹450. Meanwhile, on BSE, it listed at ₹991, a 120.22 percent premium to its issue price.
The ₹2,830.40 crore initial public offering (IPO) of Premier Energies, a leading solar cell and module manufacturer, was open for subscription from August 27, 2024, to August 29, 2024, with a price band set between ₹427 and ₹450 per share. Prior to the IPO launch, Premier Energies raised ₹846 crore from anchor investors, indicating strong interest in the offering.
During the 3 days of bidding the IPO received robust subscription and was bid 75 times overall. The issue received bids for 332.78 crore equity shares against 4.41 crore shares on offer. The retail category saw a subscription of 7.44 times, while Non-institutional investors' quota was subscribed by 50.98 times. The qualified institutional buyers (QIBs) portion received a subscription of 212.42 times, and the employee portion was subscribed 11.32 times.
The Premier Energies IPO featured a fresh issuance of 2.87 crore shares, raising ₹1,291.40 crore, alongside an offer for sale (OFS) of 3.42 crore shares, totaling ₹1,539.00 crore. Within the OFS, South Asia Growth Fund II Holdings LLC (SAGF II) sold off 2.68 crore equity shares, the South Asia EBT Trust divested 1,72,800 shares, and promoter Chiranjeev Singh Saluja offloaded 72 lakh shares.
Post-IPO, the promoters retain a 72.23 percent stake in the company, while the public holds 26.12 percent, inclusive of shares owned by SAGF II. An additional 1.65 percent of shares are held by employee trusts.
The share allocation for the IPO was structured with 50 percent reserved for qualified institutional buyers (QIBs), 15 percent for non-institutional investors (NIIs), and 35 percent for retail investors. Employees were offered a ₹22 per share discount, with the minimum application size set at 33 shares, requiring a minimum investment of ₹14,850 for retail participants.
Kotak Mahindra Capital Company Limited, J.P. Morgan India Private Limited, and ICICI Securities Limited served as the book-running lead managers for the Premier Energies IPO, with Kfin Technologies Limited acting as the registrar for the offering.
Founded in April 1995, Premier Energies Limited is a key player in the solar energy industry, specializing in the manufacturing of integrated solar cells and panels. The company's diverse product range includes both monofacial and bifacial solar modules, along with EPC (Engineering, Procurement, and Construction) and O&M (Operations and Maintenance) services. Premier Energies operates five cutting-edge manufacturing facilities in Hyderabad and Telangana.
In its red herring prospectus (RHP), Premier Energies highlights Websol Energy System Ltd. as its sole comparable peer, emphasizing its unique standing in the market.
Premier Energies recorded a remarkable compound annual growth rate (CAGR) of 42.71 percent in operating revenue between FY21 and FY23. The company's momentum surged in FY24, with revenue skyrocketing by 120 percent to ₹3,143 crore. This year also marked a significant turnaround for Premier Energies, as the company posted a strong profit of ₹231 crore, a sharp recovery from the ₹13.3 crore loss it reported the previous year.
