Premier Energies IPO Review

Premier Energies is an integrated solar cell and solar module manufacturing company. Backed by GEF Capital, a Washington DC based Private Equity Investor, Premier Energies is at the forefront of innovative technology, crafting photovoltaic products and solutions.

The Company is led by the Promoters comprising their Chairman and Whole-Time Director, Surender Pal Singh Saluja and their Managing Director, Chiranjeev Singh Saluja, who have a combined experience of approximately 29 years in the solar industry.

Financially, Premier Energies revenue jumped from ₹7,838.99 Millions in FY22 to ₹14,721.91 Millions in FY23 and currently jumped to ₹28,832.62 Millions in FY24. Similarly, EBITDA also increased from ₹537.38 Millions in FY22 to ₹1,128.81 Millions in FY23 and currently jumped to ₹5,053.18 Millions in FY24. The PAT is in declining mode from ₹-144.08 Millions in FY22 to ₹-131.92 Millions in FY23 and currently jumped to ₹2,317.59 Millions in FY24. This indicates a steady financial performance.

For the Premier Energies IPO, the company is issuing shares at a pre-issue EPS of ₹5.48 and a post-issue EPS of ₹5.13. The pre-issue P/E ratio is 82.11x, while the post-issue P/E ratio is 87.71x against the industry P/E ratio of 59.20x. The company's ROCE for FY24 is 25.65% and ROE for FY24 is 43.73%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Premier Energies indicates potential listing gains of 50% - 55%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Apply the Premier Energies Limited IPO for Listing gain or long term investment purposes.