Premier Energies Ltd. IPO, a pioneering integrated solar cell and module manufacturing company, is launching its Initial Public Offering (IPO) to raise ₹2,830.39 crores through a Book Built Issue. This includes a Fresh Issue of 28.69 lakh shares worth ₹1,291.4 crores and an Offer for Sale of 34.2 lakh shares totaling ₹1,539 crores. The subscription period for the Premier Energies Ltd. IPO is scheduled from August 27, 2024, to August 29, 2024. The allotment is expected to be finalized on September 2, 2024, and the shares are set to be listed on the BSE and NSE by September 3, 2024.

Supported by GEF Capital, a prominent Private Equity Investor based in Washington DC, Premier Energies is known for its innovative approach to photovoltaic products and solutions. The company has been at the forefront of technology, driving advancements in the solar industry.

Share Pricing and Investment Details

The share price band for the Premier Energies IPO is set between ₹427 to ₹450 per equity share. The minimum lot size is 33 shares, with retail investors required to invest a minimum of ₹14,850. For High-Net-Worth Individuals (HNIs), the minimum investment is 14 lots (462 shares), amounting to ₹207,900.

Kotak Mahindra Capital Company Limited, J.P. Morgan India Private Limited, and ICICI Securities Limited are the book-running lead managers for this IPO, while KFin Technologies Limited serves as the registrar.

Grey Market Premium (GMP) and Allotment Status

The Grey Market Premium (GMP) for Premier Energies Ltd. IPO is expected to be in the range of ₹240 to ₹250, indicating potential listing gains of 50% - 55%. However, it is important to note that GMP is speculative and based on informal trading activities. The actual price discovery will take place once the shares are officially listed on the stock exchange.

To check the Premier Energies Ltd. IPO allotment status, investors can visit the registrar's website on or after September 2, 2024. The process involves selecting Premier Energies Ltd. from the dropdown list of IPOs, entering the application number, PAN, or DP Client ID, and submitting the details to view the allotment status.

Objectives of the IPO and Utilization of Funds

The proceeds from the Premier Energies Ltd. IPO will be utilized for the following purposes:

Investment in Subsidiary: ₹12,914 million will be allocated for investment in Premier Energies Global Environment Private Limited to part-finance the establishment of a 4 GW Solar PV TOPCon Cell and 4 GW Solar PV TOPCon Module manufacturing facility in Hyderabad, Telangana, India.

General Corporate Purposes: The remaining funds will be used for general corporate purposes.

Financial Performance and IPO Review

Premier Energies Ltd. has demonstrated impressive financial growth over the past few years. The company’s revenue has significantly increased from ₹7,838.99 million in FY22 to ₹14,721.91 million in FY23, and it has further surged to ₹28,832.62 million in FY24. Similarly, EBITDA has grown from ₹537.38 million in FY22 to ₹1,128.81 million in FY23, and it currently stands at ₹5,053.18 million in FY24. However, the Profit After Tax (PAT) initially showed a decline from ₹-144.08 million in FY22 to ₹-131.92 million in FY23 but has dramatically improved to ₹2,317.59 million in FY24.

For the Premier Energies Ltd. IPO, the pre-issue Earnings Per Share (EPS) is ₹5.48, while the post-issue EPS is ₹5.13. The pre-issue Price-to-Earnings (P/E) ratio is 82.11x, and the post-issue P/E ratio is 87.71x, compared to the industry P/E ratio of 59.20x. The company's Return on Capital Employed (ROCE) for FY24 is 25.65%, and Return on Equity (ROE) is 43.73%. These financial metrics suggest that the IPO is fairly priced.

Conclusion

The Premier Energies Ltd. IPO presents a strong investment opportunity for those interested in the growing solar energy sector. With backing from GEF Capital and a significant focus on expanding its manufacturing capabilities, Premier Energies is well-positioned to capitalize on the increasing demand for solar photovoltaic products.

Given the company’s robust financial performance, innovative technology, and strategic use of IPO funds, investors are encouraged to consider applying for the Premier Energies Ltd. IPO. The Grey Market Premium suggests potential listing gains, making this IPO an attractive option for both listing gains and long-term investment.

Investors should carefully assess their investment objectives and consider this IPO as part of a diversified portfolio in the renewable energy sector.

Also Read : Jay Bee Laminations Ltd. IPO: A Comprehensive Review and Investment Opportunity

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