Acme Solar Holdings Limited, one of India’s largest independent power producers in the renewable energy sector, is making a significant step into the public market with its Initial Public Offering (IPO). The company, a leader in solar energy, is aiming to expand further by offering a portion of its equity shares to the public.

Acme Solar Holdings’ IPO opens with a price band set between ₹275 and ₹289 per share, offering both a Fresh Issue of 828.71 Lakh shares and an Offer for Sale of 174.74 Lakh shares. The total issue size is approximately ₹29,000 Crores, and it is expected to raise substantial funds to repay outstanding borrowings and for general corporate purposes. Retail investors are required to invest a minimum of ₹14,739 for 51 shares, while HNIs need to apply for 714 shares, totaling ₹2,06,346.

The subscription period for the IPO opened on November 6, 2024, and is set to close on November 8, 2024. The allotment process will take place on or around November 11, 2024, with shares set to list on the BSE and NSE by November 13, 2024.

Acme Solar Holdings IPO Financials and Market Performance

Acme Solar Holdings has grown significantly over the years, with operations spanning across various renewable energy sources. As of fiscal 2024, the company reported a revenue of ₹14,662.67 million, an EBITDA of ₹10,891.48 million, and a profit after tax of ₹6,977.81 million. The company’s pre-issue EPS stands at ₹12.55, with a post-issue EPS of ₹11.53. The pre-issue P/E ratio is 23.02x, which is considerably lower than the industry’s P/E ratio of 170.3x, indicating the IPO is reasonably priced in comparison to industry standards.

Despite the grey market premium (GMP) of ₹0 indicating no listing gains, Acme Solar Holdings continues to be viewed as a strong player in the renewable energy market, making this IPO attractive for long-term investment rather than for quick listing gains.

IPO Subscription and Allotment Updates

As of the final day of the subscription period on November 8, 2024, the Acme Solar Holdings IPO has been oversubscribed by 2.89 times. This strong demand is an indication of investor confidence in the company’s prospects. The company has also raised ₹1,300.50 Crores from anchor investors, with shares allocated at the upper price band of ₹289 per share.

The IPO allotment process will begin on November 11, 2024. To check your allotment status, follow these steps:

1. Navigate to the IPO allotment status page.
2. Select Acme Solar Holdings Limited IPO from the dropdown list.
3. Enter your application number, PAN, or DP Client ID to check your allotment status.

This process ensures that all investors can easily check their IPO allotment status as soon as it is live on the registrar's website.

IPO Proceeds and Utilization

The proceeds from the fresh issue will be utilized for:

1. Investment in subsidiaries to reduce outstanding borrowings and strengthen the financial position of Acme Solar Holdings.
2. General corporate purposes, supporting the company’s ongoing growth and diversification within the renewable energy sector.

This financial strategy is in line with Acme Solar Holdings’ goal to expand its reach and capabilities in the ever-growing renewable energy market.

Acme Solar Holdings IPO Review and Recommendations

With a cash return on equity of 38.83% for FY24 and a post-issue P/E ratio of 25.06x, the Acme Solar Holdings IPO is fully priced, offering no immediate listing gains based on the grey market premium. Investors looking for quick listing gains may find this IPO less appealing, but those interested in long-term investment in the renewable energy sector may find the IPO promising.

In conclusion, the Acme Solar Holdings IPO offers a strong opportunity for those looking to tap into the growth potential of India’s renewable energy sector. Despite the modest expectations for listing gains, Acme Solar’s strong financial performance and its prominent position in the industry make it a solid pick for long-term investors.

For more information on the best IPOs to apply for, please check out Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today - Finance Saathi and Top News Headlines - Share Market News, Latest IPO News, Business News, Economy News- Finance Saathi.

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