ACME Solar Holdings Ltd. will launch its initial public offering on Nov. 6. The company plans to sell shares worth total Rs 2,900 crore through a combination of fresh issue and offer-for-sale.
The IPO comprises of a fresh issue of 8.28 crore equity shares worth up to Rs 2,395 crore. The company also has an offer-for-sale of 1.74 crore equity shares worth up to Rs 505 crore, with promoter ACME Cleantech Solutions Pvt. as the sole seller.
The price band, fixed between Rs 275 and Rs 289 per share, pegs the company's market capitalisation at Rs 17,487 crore at the upper price range.
Out of the total IPO size, 75% is reserved for qualified institutional buyers, 15% for non-institutional investors, and the remaining 10% for retail individual investors.
Issue Details
Issue opens: Nov. 6.
Issue closes: Nov. 8.
Total offer size: Rs 2,900 crore.
Fresh issue size: Rs 2,395 crore.
Offer for sale size: Rs 505 crore.
Face value: Rs 2 apiece.
Fixed price band: Rs 275–289 per share.
Minimum lot size: 51 shares.
Listing: NSE, BSE
Business
ACME Solar Holdings Ltd., incorporated In June 2015, specialises in the development, construction, ownership, operation and maintenance of large-scale renewable energy projects The company is one of the largest producers of electricity from wind and solar energy in India.
The company had a total operational project capacity of 1,320 megawatt in solar power projects, as of fiscal 2024. In addition, it has a contracted project capacity of 1,650 megawatt, which includes 1,500 megawatt of solar power projects and 150 megawatt of wind power projects.
Additionally, the company's awarded project capacity under construction totals 2,380 megawatt as of fiscal 2024. This includes 300 megawatt of solar power projects, 830 megawatt of hybrid power projects and 1,250 megawatt of Firm and Dispatchable Renewable Energy, or FDRE power projects.
Use Of Proceeds
The company plans to utilise the net IPO proceeds towards funding the following objects:
Rs 1,795 crore for repayment or prepayment of certain outstanding borrowings availed by subsidiaries.
Rest for general corporate purposes.
Risk Factors
The company's portfolio growth is heavily relied on highly competitive renewable energy power project auctions.
The company is dependent on power purchase agreements to sell power and generate its revenues.
While the company does have experience in commissioning solar power projects, it does not have any experience in commissioning wind, hybrid, FDRE power projects and closed loop pump storage projects. The company could encounter delays and unexpected costs in such projects.
ACME Solar IPO GMP Today
Ahead of the IPO, the grey market premium for ACME Solar Holdings shares was Rs 30, standing 10.38% higher than the upper end of the offer's price band, i.e., Rs 289 per share.
Notably, grey market premium are speculative in nature and are not backed by exchanges.
Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.
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