ACME Solar Holdings IPO Details
Issue Date
--
Price Range
₹275 - ₹289
Lot Size
51
IPO Size
₹2901.03 Cr
ACME Solar Holdings IPO Listing Details
Listing On
13 Nov'24
Issue Price
₹289
Listed Price
₹ 251
Retail Gain/Listing Gain
▼-13.15%
Schedule of ACME Solar Holdings IPO
Start date
End date
Allotment of bids
Refund Initiation
Listing on exchange
13/11/2024
ACME Solar Holdings Company Background
Acme Solar Power Holdings is a renewable energy company in India with a portfolio of solar, wind, hybrid and firm and dispatch able renewable energy (“FDRE”) projects. The company develops, builds, owns, operates and maintains utility scale renewable energy projects (through their in-house engineering, procurement and construction (EPC) division and operation and maintenance(O&M) team, and generates revenue through the sale of electricity to various off-takers including central and state government-backed entities.
Retail and HNI Applications
The retail portion of the Acme Solar Power Holdings Power Limited IPO consists of not less than 99,99,999 equity shares of face value of ₹10. Not less than 10% of the net offer is for retail individual bidders
Acme Solar Power Holdings IPO Key Points
Objectives of the offer:
- Investment in their subsidiaries for repayment/prepayment, in full or in part, of certain outstanding borrowings availed by their subsidiaries;
- General corporate purposes
- Enhancement of the company’s brand name and creation of a public market for equity shares in India
Subscription details:
Qualified Institutional buyers: 75%
Non-Institutional bidders: 15%
Retail: 10%
Potential Benefits for investors:
By investing in Acme Solar Power Holdings, one gets to be a part of a company that is in a very fast growing sector and, what is likely, the future of Indian energy,.
By investing in Acme Solar Power Holdings, one gets to be a part of a company that has a PAN India presence and a diverse and long-running clientele.
Anchor Investors:
The anchor investor bid opens and ends on Nov 5, 2024. The company may allocate up to 60% of the QIB portion to anchor investors, out of which one third will be allocated to Mutual Funds.
Book running lead managers:
Nuvama Wealth Management Limited
ICICI Securities
JM Financial Limited
Kotak Mahindra Capital Company Limited
Motilal Oswal Investment Advisors Limited
ACME Solar Holdings Limited IPO Review | IPO Issue details | Key Highlights
Kotak Securities
•03m 09s
Key Financials
Revenue from Operations | 13,192.50 | 12,949.04 | 14,879.02 |
Total Equity and Liability | 1,33,998.01 | 1,21,869.53 | 1,08,867.17 |
Return on average net worth(%) | 26.93 | (0.17) | 3.25 |
All Financial Information about Acme Solar Power Holdings
Promoters of Acme Solar Power Holdings (If Any)
Details of the individuals or entities promoting the IPO, along with their involvement and contribution to Acme Solar Power Holdings's success.
Manoj Kumar Upadhyay | Chairman and Managing Director | Diploma in Electronics Engineering from Govt Polytechnic |
Nikhil Dingra | Whole-time director and CEO | B.E., M.B.A. from IIM B |
Shashi Shekhar | Whole-time director and Vice Chairman | Bachelor of Science |
Sanjay Dhawan | Independent Director | B.E., M.B.A from IIM A |
Anuranjita Kumar | Independent Director | Bachelors in Psychology |
Following is the comparison with the peer group companies of the Company listed in India and in the same line of business as the Company: The table captures the key accounting ratios of Acme Solar Power Holdings Power Limited with its listed peers for FY 24:
Adani Green Energy Limited | 92,200 | 85.86 | 7.22 | 13.20 |
ReNew Energy Global PLC | 81,948 | 332.16 | 3.07 | 93.96 |
Acme Solar Power Holdings | 13,192.50 | 49.61 | 26.93% | 12.55 |
Acme Solar Power Holdings IPO Strengths
Large renewable energy player well positioned to capitalize on strong industry tailwinds in our IPP business
Acme Solar Power Holdings is one of the largest renewable energy independent power producers (IPP) in India and among the top 10 renewable energy players in terms of operational capacity in India as of March 31, 2024, They have an aggregate operational project capacity of 1,340 MW (1,826 MWp). They also have an under construction contracted project capacity of 3,250MW and an under construction awarded project capacity of 1,730 MW.
Expansive portfolio diversified across different renewable energy technologies
The renewable energy company has an expansive portfolio of projects diversified across different renewable energy technologies. Their projects are located across 11 Indian states of Rajasthan, Gujarat, Punjab, Madhya Pradesh, Uttar Pradesh, Bihar, Chattisgarh, Andhra Pradesh, Odisha, Karnataka and Telangana.
Long-term stable cash flows based on contracts with central and state government entities
Almost all of our portfolio is contracted through long term power purchase agreements with central and state government backed entities typically for a period of 25 years. As of June 30, 2024, the weighted average residual period (based on the contracted capacity) under the PPAs for all of their operational projects was 19.94 years.
Acme Solar Power Holdings IPO Risk Factors
- The company is dependent on Power Purchase Agreements (“PPA”) to sell power and generate revenue from operations. Further, the terms of PPAs may expose them to certain risks that may affect their future results of operations and cash flows.
- The business is dependent on top 10 off-takers, which contributed 95.42%, 89.42%, 89.97%, 87.48% and 81.11% of their revenue from operations during the three months ended June 30, 2024 and June 30, 2023 and for FY 2024, 2023 and 2022, respectively. The loss of any of these off-takers could hurt their business.
- The company procured 84.48%, 77.15%, 79.37%, 69.84% and 69.95% of their total purchases during the three months ended June 30, 2024 and June 30,2023 and in FY 2024, 2023 and 2022, respectively from ACME Cleantech, their top supplier. Further, they do not have definitive supply agreements with their vendors for the supply of components and any interruptions in supply could hurt their business.
Key Strategies of Acme Solar Power Holdings
- Expand and diversify our portfolio to continue to maintain our leadership position;
- Continue to invest in and improve our integrated business model;
- Focus on technology upgrades to improve efficiency and longevity of our projects;
Conclusion
Acme Solar Power Holdings comes with a strong order book, expertise in a sector that can be a booming sector in India. However, on the flip side the company’s financials are not as strong as some of the other players in the solar and renewable energy sector. To decide whether to invest or not, make sure you do your homework thoroughly.
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