ACME Solar Fixes Rs Rs 275–289 Price Band For Rs 2,900 Crore IPO

Renewable energy producer ACME Solar Holding Ltd. has set a price band of Rs 275–289 for its upcoming initial public offering, according to a company statement on Thursday. Investors can bid for a minimum lot of 51 shares or in multiples thereof.

ACME Solar is looking to sell shares worth Rs 2,900 crore via the book-building offer. The issue includes fresh issue of Rs 2,395 crore and an offer for sale worth Rs 505 crore. The OFS portion has promoter ACME Cleantech Solutions Pvt. as the sole selling shareholder.

The anchor portion for the offer will open on Nov. 5. The IPO will open on Nov. 6 and continue till Nov. 8.

Of the net proceeds from the fresh issue, Rs 1,795 crore will be utilised for repayment or prepayment outstanding debt availed by its subsidiaries.

Incorporated in 2003, ACME Solar has renewable energy projects across solar, wind and hybrid networks. It also operates firm and dispatchable renewable energy projects, which are integrated with energy storage systems for round-the-clock power supply.

ACME Solar features among top 10 renewable energy players in India in terms of operational capacity as of June 30, 2024, the company said in its red herring prospectus.

The company is present present in 11 states across the nation, including Rajasthan, Andhra Pradesh, Gujarat, Madhya Pradesh and Karnataka.

• The company may not be able to grow its portfolio of renewable energy projects due to reliance on highly competitive auctions for the same.

• It is dependent on power purchase agreements to sell power and generate revenue, terms of which may expose the company to future risks.

• The top 10 off-takers accounted for 95% of the company's revenue in the June quarter, and losing them can affect business.

• Dependence on promoter ACME Cleantech for raw materials is susceptible to adverse impacts in the event of supply disruptions.

• China makes for a substantial portion of equipment purchases for the company—66.72% last fiscal—and sanctions against the nation can ramp up costs.

• The company has limited experience in wind, hybrid, and FDRE green energy projects.