Premier Energies’ IPO has received a great response and has been booked almost 58 times on the last day of the bidding process.

Demand came from institutional investors, whose share was booked 160 times, followed by non-institutional investors with 47.65 times. The retail share of the issue was booked 6.6 times.

Premier Energies GMP

In the unlisted market, the company’s shares are trading at a GMP of Rs 390, representing a premium of 87% to the issue price.

Price range for Premier Energies IPO

The company has fixed a price band of Rs 427 to Rs 450 per share, with investors able to bid on 33 shares in one lot.

Premier Energies IPO

Most analysts advised investors to participate in the IPO as the company has a diversified customer base with relationships both in India and abroad. The company also has a strong order book of Rs 5,926 crore. “At a higher price band, PEL demands an EV/sales multiple of 4.8x, which looks attractive given the prevailing valuation of a single listed peer (which is loss-making). Hence, we assign a SUBSCRIBE rating to the issue,” Choice Broking said.

Further details

The Company intends to use the net proceeds to invest in its subsidiary Premier Energies Global to partially fund the construction of a 4 GW solar PV TOPCon cell and module manufacturing facility in Hyderabad and use the balance for general corporate purposes. Premier Energies was the second largest integrated player in India at the end of FY24 and has an installed annual capacity of 2 GW for cell manufacturing besides an installed annual capacity of 4.13 GW for module manufacturing. It is the largest Indian exporter of solar cells to the US in FY24. As of the time of filing the RHP, the Company has five manufacturing facilities, all located in Hyderabad, and it operates its operations through eight subsidiaries in India and abroad. India’s module manufacturing capacity reached approximately 72 GW in FY24 and while the current solar cell manufacturing capacity stands at 8.1 GW, it is expected to grow exponentially in the future as well.

India’s strong commitment to renewable energy, ambitious targets and favourable regulatory environment have attracted significant investments in solar energy projects and made India a major player in the global solar market.

The company’s revenue from operations grew at a compound annual growth rate (CAGR) of 42.71% during the financial year 2021-2023. Revenue in the financial year 2024 grew by 120% to Rs. 3,143 crore. The company posted a profit of Rs. 231 crore in the financial year 2024 as against a loss of Rs. 133 crore in the previous year.

Kotak Investment Banking, JP Morgan and ICICI Securities are acting as bookrunners and lead managers for the issue.

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