Premier Energies IPO Receives Strong Subscription, Oversubscription at 6.60 times
Premier Energies, a leading solar cell and module manufacturer, has received a significant response for its Initial Public Offering (IPO) on the second day of bidding. The IPO, valued at Rs 28.3 billion, recorded a subscription rate of 6.60 times the available shares. Data from the National Stock Exchange (NSE) revealed that the total number of bids reached 29,48,45,364 shares, surpassing the 4,46,40,825 shares on offer.
Strong Response from Non-Institutional Investors
The non-institutional investor (NII) segment led the impressive subscription rate, with a remarkable 18.83 times oversubscription. The Retail Individual Investors (RII) category was also oversubscribed at 4.21 times, while the Qualified Institutional Buyers (QIB) portion saw a subscription rate of 1.40 times. Notably, Premier Energies’ IPO achieved full subscription on its opening day.
Fund Allocation and Construction Plans
The IPO consists of a fresh issue amounting to Rs 12.91 billion and an offer-for-sale of up to 3,42,00,000 equity shares. Premier Energies announced that it has raised Rs 8.46 billion from anchor investors. A significant portion of the funds, approximately Rs 9.69 billion, will be invested in Premier Energies’ subsidiary, Premier Energies Global Environment Pvt Ltd.
These funds will facilitate the construction of a state-of-the-art manufacturing facility in Hyderabad, Telangana, with a capacity of 4 GW for Solar PV TOPCon Cells and 4 GW for Solar PV TOPCon Modules. This investment showcases Premier Energies’ commitment to expanding their production capabilities and contributing to India’s renewable energy goals. The remaining funds will be utilized for general corporate purposes.
Premier Energies – A Leader in Solar Energy
With 29 years of experience in the industry, Premier Energies has established itself as an integrated solar cell and module manufacturer. They currently boast a total installed capacity of 2 GW for solar cells and 4.13 GW for solar modules across five manufacturing facilities. This esteemed reputation positions Premier Energies as a key player in the renewable energy sector.
Leading Book-Running Lead Managers for the IPO
The successful IPO of Premier Energies is being overseen by renowned book-running lead managers, namely Kotak Mahindra Capital Company, J P Morgan India, and ICICI Securities. Their expertise and strategic guidance have contributed to the favorable response and substantial oversubscription of Premier Energies’ IPO.
Premier Energies’ IPO marks a significant milestone in the company’s growth trajectory and reflects the robust demand for renewable energy investments. As Premier Energies continues to expand its manufacturing capabilities, it is poised to make a valuable contribution to India’s solar energy sector and its overall renewable energy targets.
