ACME Solar IPO GMP Indicates Over 5% Listing Gain Ahead Of Launch

ACME Solar Holdings Ltd. is set to open its initial public offering (IPO) on November 6. Ahead of the opening, the grey market premium (GMP) on ACME Solar IPO indicated a listing gain of 5.19% over the upper price of Rs 289. 

According to InvestorGain, ACME Solar IPO's GMP stood at Rs 15 as of 2:32 am on November 5, suggesting a decent listing gain above the upper price band, if current trends persist.

The GMP on the issue, however, has declined from the highest level of Rs 30 per share recorded earlier.

Investors should note that the GMP of an IPO is not the official stock price and is subject to rapid changes. It just indicates the potential listing price of a stock.

ACME Solar IPO will be available for subscription between November 6 and November 8. This will be followed by share allotment on November 11.

Shares of ACME Solar Holdings Ltd. are scheduled to list on the NSE and BSE, tentatively on November 13. 

ACME Solar IPO price band has been fixed at Rs 275 to Rs 289 apiece.  Retail investors can bid in the IPO with a minimum lot size of 51 shares amounting to an investment of Rs 14,739.

The offer is a combination of a fresh issue of 8.29 crore shares worth Rs 2,395 crore and an offer for sale of 1.75 crore shares totalling Rs 505 crore. ACME Solar IPO’s total offer size is Rs 2,900 crore. 

The company has appointed Kfin Technologies Ltd. as registrar for the issue.

Nuvama Wealth Management Ltd., ICICI Securities Ltd., JM Financial Ltd., Kotak Mahindra Capital Company Ltd. and Motilal Oswal Investment Advisors Ltd. are the book-running lead managers for ACME Solar IPO.

The company, in its red herring prospectus, stated that it intends to use the net proceeds from the IPO to settle debt of Rs 1,795 crore, incurred by its subsidiaries. The rest of the funds will be allocated for general corporate purposes.

ACME Solar Holdings Ltd., incorporated in 2015, is one of India’s largest producers of electricity from wind and solar energy. It specialises in the development, construction, ownership, operation and maintenance of large-scale renewable energy projects. As of March 31, 2024, the company had a total operational project capacity of 1,320 MW in solar power. 

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.