The initial public offering (IPO) of solar cell and panel manufacturer, Premier Energies Ltd., will open for subscription on August 27. The company will raise ₹2,830 crore through the issue.

The anchor book will open for a day on August 26 and the issue will close for bidding on August 29.

Premier Energies will sell its shares in the range of ₹427-450 apiece, where investors can bid for a minimum of 33 equity shares in one lot and its multiple thereafter.

Last heard, the shares of the company are commanding a healthy premium of ₹200 in the unlisted market.

However, it is important to note that grey market premiums are just an indicator of how the company’s shares are stacked up in the unlisted market and are subject to change rapidly.

The offer consists a fresh share sale of 2.87 crore shares aggregating to ₹1,291.4 crore and an offer-for-sale (OFS) of up to 3.42 crore equity shares by its promoters and existing shareholders amounting to ₹1,539 crore.

The expected market capitalisation after listing could be around ₹

20,530 crore.

As much as 50% of the issue has been reserved for qualified institutional bidders (QIBs), while 15% has been set aside for non-institutional investors (NIIs). The remaining 35% of the offer has been reserved for the retail investors.

The IPO proceeds will be utilised to invest in arm Premier Energies Global Environment Pvt. Ltd. for part-financing a 4 GW Solar PV TOPCon Cell and 4 GW Solar PV TOPCon Module manufacturing facility in Hyderabad. TOPCon stands for Tunnel Oxide Passivated Contact, and it is a new type of solar cell being positioned as the next PV standard.

Premier Energies manufactures integrated solar cell and solar panel. The company’s product portfolio includes Cell, Solar Module, Monofacial modulesBifacial modules, EPC Solutions and O&M Solutions.

The company has five manufacturing units, all of which are situated in Hyderabad, Telangana, India.

The company posted a revenue of ₹1,657 crore in the June quarter, compared to ₹611 crore a year ago. Net profit for the quarter stood at ₹198 crore as against ₹31 crore last year. EBITDA margin for the quarter stood at 22.16% from 12.44% last year.

Kotak Mahindra Capital Company Ltd., JP Morgan India Private Ltd. and ICICI Securities Ltd. are the book-running lead managers to the IPO, while Kfin Technologies Ltd. is the registrar.

The allotment for the Premier Energies IPO is expected to be finalised on August 30, 2024, while the company will list on the exchanges with tentative listing date fixed as September 3, 2024.