Premier Energies To Use IPO Proceeds To Build Hyderabad Solar Plant
"We have plans to set up a 4 gigawatt solar cell module manufacturing facility of the latest technology—Topcon technology—in Hyderabad," he said.
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Premier Energies Ltd. intends to use the funds raised from its initial public offering to set up an integrated solar module manufacturing facility in Hyderabad, Managing Director Chiranjeev Singh Saluja said.
"We have plans to set up a 4 gigawatt solar cell module manufacturing facility of the latest technology—Topcon technology—in Hyderabad," he told NDTV Profit.
Saluja said that of the Rs 1,291.4 crore net proceeds raised through the IPO, Rs 1,000 crore will be used for expansion. Premier Energies will raise up to Rs 2,830.4 crore from the primary market, of which Rs 1,539 crore will go to shareholders selling stake through offer for sale portion of the issue. GEF Capital, a private equity firm, entered the company in 2020 and will do a partial exit via OFS, Saluja said.
The company has set the IPO price band at Rs 427–450 apiece.
Premier Energies, which has been in operation for over 20 years, specializes in the production of solar cells and modules. Now, it has a capacity of 2 gigawatt operational capacity for solar cells and around 4 gigawatts of module manufacturing capacity, he said.
"Post-pandemic, a growth story is building up in the solar power manufacturing space in India. Everybody has started thinking about China plus one strategy. India started the Atmanirbhar and Make in India initiatives. So, the manufacturing story is here to stay, given the robust demand," Saluja said.
Today, there are solar modules and cell manufacturers like us in India, he said. The company also intends to get into wafer manufacturing under the PLI scheme. There's also polysilicon, which has come up, he added.
India comprises two types of markets, one of which the Government of India has established for local manufacturers. The market receives complete protection to foster the growth of local manufacturing capacity. The second market is the developer market, where large power plants are currently under construction. The plants can get supplies from China at a cheaper rate, which is an advantage, he said.
