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Anand Rathi Report
ACME Solar Holdings Ltd. launched its initial public offering today and the offer closes for subscription on Nov. 08. The renewable energy company has fixed the price band in the range of Rs 275 to Rs 289 Apiece. The minimum order lot for bidding is 51.
The Rs 2900 crore IPO comprises of a fresh issue of 8.28 crore equity shares worth up to Rs 2,395 crore and offer-for-sale of 1.74 crore equity shares worth up to Rs 505 crore.
Objects of the Issue
Repayment/prepayment of outstanding borrowings availed by the company;
General corporate purposes.
Valuation
ACME Solar Holdings is a large renewable energy player well positioned to capitalize on strong industry tailwinds with End-to-end value chain capabilities and an integrated approach to developing renewable power projects by in-house project development, engineering, procurements, construction, operations and maintenance teams and Expansive portfolio diversified across different renewable energy technologies with Long-term stable cash flows based on contracts with central and state government entities along with Design and value engineering leading to higher efficiencies.
At the upper price band company is valuing at P/E of 30.17 times, with an enterprise value/Ebitda of 22.4 times and market cap of Rs 1,74,868 million post issue of equity shares and return on net worth of 26.93%.
We believe that the IPO is richly priced and recommend a “Subscribe-Long term” rating to the IPO.
Click on the attachment to read the full IPO report:
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