Premier Energies Ends At 86% Premium Over IPO Price
The initial public offering of Premier Energies was subscribed 74.38 times on its final day of bidding.
Shares of Premier Energies Ltd. ended on Tuesday at Rs 838.3 per share, a premium of 86.2% over its issue price of Rs 450 per share on the BSE. On the NSE, the stock closed at a premium of 86.4%. The stock listed at a premium of 120% on both the stock exchanges.
The initial public offering of Premier Energies was subscribed 74.38 times on its final day of bidding. The company raised Rs 2,830.4 crore, consisting of a fresh issue of shares worth Rs 1,291.4 crore and an offer-for-sale component of Rs 1,539 crore.
The company will use proceeds worth Rs 968.6 crore for financing establishment of a solar cell and solar module manufacturing facility in Hyderabad. The balance towards general corporate purposes.
Promoter and promoter groups hold 72.23%, while 26.12% of equity is classified as public shareholding. Post the public offering, the promoter shareholding will decrease to 60.04% and public shareholding will expand to 38.41%, as per NDTV Profit calculations.
Business
Founded in April 1995, PEL manufactures integrated solar cells and solar panels. The company is also the second-largest solar cell and module manufacturer in India as per capacity. As of March, it has 16.2% market share in the total solar cell-installed capacity in India
The company has five manufacturing units in Hyderabad. Its total annual installed capacity for solar cells stands at 2 GW, while its solar module production capacity is 4.13 GW.
As of July 31, the company had a total order book of Rs 5,926.6 crore, of which, 25% are from the public sector undertakings and government entities, while the rest is from private players
PEL revenue has grown a compounded annual growth rate of 106% over the last three years. In fiscal 2022, the company had posted a net loss of Rs 14.4 crore, while it posted a net profit of Rs 231.4 crore in the last fiscal.
