Everything You Need to Know About Premier Energies IPO - Dates, Pricing, Issue Size and More
As benchmark indices climb to new highs, companies across domains are looking to capitalise on investors’ optimism and raise capital. Premier Energies Ltd. is one of several companies looking to get listed on exchanges.
About Premier Energies Ltd .
Premier Energies Ltd. has 29 years of experience in the solar industry, and it is India's second largest integrated solar cell and solar module manufacturer, with an annual installed capacity of 2 GW and 3.36 GW, respectively, as of March 31, 2024. The company's business operations include:
- Manufacturing of solar photovoltaic cells
- Manufacturing of solar modules, including custom-made panels for specific applications
- Execution of EPC projects
- Independent power production
- Sale of other solar-related products
Premier Energies Ltd. IPO details
The IPO of Premier Energies Ltd. consists of a fresh issue and an offer for sale. Here are the key details of the IPO:
| Particulars | IPO Details |
|---|---|
IPO opens on | To be announced |
IPO closes on | To be announced |
Fresh issue aggregates up to | ₹1500 crores |
Number of shares in offer for sale | Up to 28,200,000 equity shares |
Face value | ₹1 |
Lot size | To be decided |
Minimum investment amount | To be decided |
Book running lead managers | Kotak Mahindra Capital Company Ltd. J P Morgan India Pvt Ltd. ICICI Securities Ltd. |
Offer registrar | KFin Technologies Ltd. |
Use of IPO proceeds
The company plans to utilise the net proceeds towards:
-
Investment in its subsidiary, Premier Energies Global Environment Private Limited , for part financing the establishment of a 4 GW Solar PV TOPCon Cell and 4 GW Solar PV TOPCon Module manufacturing facility in Hyderabad, Telangana
-
General corporate purposes
Financial performance
As an investor, it’s crucial for you to understand a company’s financial positioning before investing. Here are some key financials of Premier Energies Ltd.:
| Particulars | FY 23 | FY 22 | FY 21 |
|---|---|---|---|
Total assets (in ₹ crores) | 2110.688 | 1341.494 | 976.869 |
Total income (in ₹ crores) | 1463.212 | 767.033 | 736.235 |
Return on net worth (RoNW) | (3.35%) | (3.65%) | 10.63% |
EBITDA (in ₹ crores) | 112.881 | 53.738 | 88.466 |
Company’s strengths
Premier Energies Ltd. has the following strengths:
- It’s India’s second-largest integrated solar cell and solar module manufacturer as well as India’s second-largest solar cell manufacturer
- The company has a long track record in the solar module manufacturing sector
- It has technical expertise in solar cell line production
- It has a diversified customer base with strong customer relationships both within India and overseas with a strong order book
- It has an experienced promoter-led senior management team with demonstrated execution capabilities
Offer structure for different category of investors
Here’s how much of the offer is reserved for different category of investors:
| Investor category | Allocation |
|---|---|
Qualified institutional buyers | Not more than 50% of the net offer |
Non-institutional buyers | Not less than 15% of the net offer |
Retail individual investors | Not less than 35% of the net offer |
Business strategies
Here are the business strategies Premier Energies Ltd. wants to accomplish by leveraging its strengths:
- Expand its overseas presence and increase its exports, especially in the U.S. market, through strategic backward integration of our production chain and establishing manufacturing capabilities outside of India
- Develop and grow our rooftop solar offering
- Capitalise on available market opportunities to grow its domestic business
- Expand and upgrade its manufacturing capacities using the latest technology
Industry overview
With 416 GW installed generation capacity at the end of FY2023, India is the third-largest producer and consumer of electricity globally. The capacity is expected to reach 622 GW by FY2028. Power generation capacity has grown more than 100-fold since independence, and growth in electricity demand has been even higher due to heightened economic activities.
The Indian government has an ambitious plan to achieve 500 GW of clean energy by CY2030, of which 300 GW will come from solar. Based on recent government announcements, India’s annual solar capacity additions will likely double over the next two to three years.
Summing it up
It will be interesting to note investors’ response to this IPO once it opens up for bidding. Meanwhile, if you want to acquire shares of Premier Energies Ltd., do your homework well. Ensure the IPO fits your overall financial strategy and aligns with your risk appetite. Seek professional help if needed.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their own research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI prescribed Combined Risk Disclosure Document prior to investing. Brokerage will not exceed SEBI prescribed limit.
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