The initial public offering (IPO) of Premier Energies Ltd. continued to attract a strong response from the investors during the third and final day of the bidding process as qualified institutional buyers (QIBs) joined the party along with retail and non institutional investors (NIIs).

The IPO was subscribed about 74.01 times on Day 3. Investors placed bids for 330.37 crore equity shares, compared to the 4.46 crore equity shares offered for the subscription on Thursday, August 29. The three-day bidding for the IPO, which kicked off on August 27, concludes today.

The category for NIIs was booked 49.65 times, while the portion reserved for retail investors saw a subscription of 7.13 times. The quota set aside for QIBs saw 216.67 times subscription as of the same time.

Premier Energies IPO details

Ahead of the issue opening, the company has garnered ₹846 crore through its anchor book on August 26.

Marquee investors including Nomura Funds, Blackrock Institutional Trust Company, PGGM World Equity, Government Pension Fund Global, Abu Dhabi Investment Authority, Morgan Stanley, BNP Paribas, among others have participated in the anchor book.

The company sold its shares in the range of ₹427 to ₹450 apiece, where investors can bid for 33 equity shares in one lot and in multiples thereafter.

At the upper end of the price band, the company is looking to raise a total of ₹2,830 crore through the issue.

The offer included 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.

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.

Business overview

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.