As of 11:09 am, the issue had attracted bids for 2,75,03,790 shares, or 47% of the total issue size of 5,82,03,223 shares. The retail portion of the issue was subscribed 1.57 times, while the non-institutional category’s subscription rate stood at 37%. The allocation for qualified institutional bidders was booked at 15%.
The grey market premium (GMP) for ACME Solar Holdings has declined to Rs 5-6, indicating a 2% premium in the unlisted market. On the first day of bidding, the GMP was Rs 10, representing a 3% premium over the issue price.
ACME Solar raised Rs 1,300.5 crore from 58 anchor investors ahead of its IPO, which opened on Wednesday. The company sold 45 million shares at Rs 289 apiece.
Anchor investors included Abu Dhabi Investment Authority, Mirae Asset Midcap Fund, Nippon MF, HDFC MF, Tata Mutual Fund, Tata Small Cap Fund, ICICI Prudential Innovation Fund, and Invesco India Equity Fund.
The IPO consists of fresh equity shares worth Rs 2,395 crore and an offer for sale (OFS) by the selling shareholders worth Rs 505 crore, bringing the total value of the IPO to Rs 2,900 crore.
ACME Solar Holdings IPO Price Band
The company has fixed a price band of Rs 275-289 per share, with investors able to bid for 51 shares in one lot, and in multiples thereafter.
ACME Solar Holdings IPO GMP
In the unlisted market, the company’s shares are trading with a GMP of Rs 5-6, representing a 2% premium to the issue price.
ACME Solar Holdings IPO Review
“Given ACME’s extensive project pipeline, strategic focus on hybrid and FDRE projects, and anticipated gains from rising renewable tariffs, the company is well-positioned for growth in a sector with strong demand fundamentals,” said Canara Bank Securities.
“ACME Solar has established a reliable network of suppliers, subcontractors, and partners, enabling seamless execution of projects across various regions in India. Its customer-focused approach and dedication to excellence have positioned ACME Solar as a trusted entity in the renewable energy industry,” said Ventura Securities, assigning a “subscribe” rating.
Other Details
The company plans to use the net proceeds from the issue for funding the repayment/prepayment of certain outstanding borrowings and other general corporate purposes. The proceeds from the OFS component will be received by the promoter-selling shareholder.
ACME Solar Holdings has demonstrated impressive financial growth. For the fiscal year ending March 31, 2024, the company reported revenue from operations of Rs 470.84 crore, up from Rs 468.59 crore in FY23. The profit after tax was Rs 419.56 crore, compared to a net loss of Rs 30.5 crore in FY23.
ACME Solar Holdings, an Indian electricity producer established in June 2015, focuses on renewable energy sources. The company aims to advance clean energy solutions in India, contributing to the goal of achieving net-zero emissions. It specializes in innovative green technologies, including the production of green ammonia.
Nuvama Wealth Management, ICICI Securities, JM Financial, Kotak Mahindra Capital Company, and Motilal Oswal Investment Advisors are the book-running lead managers (BRLMs) to the issue.
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