Premier Energies IPO:
Premier Energies is launching its Initial Public Offering (IPO) on August 27, 2024, aiming to raise ₹2,830 crores. This offering comprises a fresh issue of 1,291 crores and an Offer for Sale (OFS) of 1,539 crores by existing shareholders. The price band for the shares is set between ₹427 and ₹450, with a minimum lot size of 33 shares.
Premier Energies IPO: Company Overview
Founded in 1995, Premier Energies is a prominent player in India’s solar energy sector, specialising in the manufacturing of solar cells and modules. The company boasts an installed capacity of 2 GW for solar cells and 4 GW for solar modules, making it the second-largest integrated solar manufacturer in India. A significant increase in revenue—up 171% year over year to 1,657.37 crore in Q1 FY25—and net profits—soaring by 533% to 198.16 crore—underscores its operational efficiency.
Premier Energies, a leading player in the renewable energy sector, recently concluded its highly anticipated Initial Public Offering (IPO). Here’s a breakdown of the key dates and details:
Premier Energies IPO: IPO Timeline:
- Opening Date:
August 27, 2024 - Closing Date:
August 29, 2024 - The allotment date is August 30, 2024.
- Refund Initiated:
September 2, 2024 - Credit of Shares:
September 2, 2024 - Listing Date:
September 3, 2024 (Tentative)
IPO Highlights:
- Price Band:
₹427 to ₹450 per share - Lot size:
33 shares - Issue Size:
₹2,830.40 crores (including fresh issue of ₹1,291.40 crores and offer for sale of ₹1,539.00 crores) - Listing exchanges (BSE and NSE)
Financial Highlights
- Market capitalisation:
approximately ₹20,284 crores post-IPO. - Revenue Growth:
From FY21 to FY23, the company achieved a compound annual growth rate (CAGR) of 42.71%, with FY24 revenue reaching ₹3,143 crore. - Profitability:
Premier Energies recorded a profit of 231 crore in FY24, a significant turnaround from a loss of 13.3 crore the previous year.
Premier Energies IPO: Investment Proposition
Strong market position
Premier Energies holds a commanding 28% market share in India’s solar cell manufacturing sector. Its competitive edge lies in vertical integration, allowing it to control various stages of production, which is crucial in a capital-intensive industry like solar manufacturing. The company is also the largest exporter of solar cells to the U.S., showcasing its international reach and operational robustness.
Future growth potential
The company plans to expand its manufacturing capacity significantly, targeting 7 GW for solar cells and 8 GW for modules by FY27. This expansion is backed by a robust order book valued at ₹5,926.57 crore, which includes diverse projects across solar modules, cells, and EPC contracts. Analysts project that Premier Energies is well-positioned to benefit from India’s ambitious renewable energy targets, which aim to increase solar power generation capacity from 82 GW to 198 GW by 2028.
Valuation and market sentiment
The IPO is attracting strong interest, as indicated by a grey market premium (GMP) of 74.67%, suggesting robust demand for the shares. Analysts recommend subscribing to the IPO for long-term gains, citing attractive valuations compared to peers and the company’s strong financial performance and growth trajectory.
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Conclusion
Investing in Premier Energies’ IPO offers a unique opportunity to engage with a leading player in the rapidly growing solar energy market. With its strong financials, ambitious expansion plans, and favourable market conditions, Premier Energies is poised for significant growth. However, potential investors should remain aware of the competitive landscape and regulatory challenges within the renewable energy sector.
