About Premier Energies
Premier Energies, a prominent name in India’s solar manufacturing sector, is preparing for a significant milestone with its upcoming Initial Public Offering (IPO), set to open on August 27. The IPO, which has set a price band of Rs 427-450 per share, aims to raise an impressive Rs 2,830 crore. This move not only marks a pivotal chapter in the company's growth story but also underscores the increasing importance of the solar industry in India's evolving energy landscape.
Founded in April 1995, Premier Energies Limited has established itself as a leader in the production of integrated solar cells and solar panels. The company offers a comprehensive range of products, including solar cells, solar modules, both monofacial and bifacial modules, along with Engineering, Procurement, and Construction (EPC) and Operations & Maintenance (O&M) solutions. With over two decades of experience, Premier Energies has played a critical role in driving India’s solar manufacturing capabilities and supporting the country’s transition to renewable energy.
Offer Period
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Offer Opens On: Tuesday, 27 August, 2024
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Offer Closes On: Thursday, 29 August, 2024
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Issue Details
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Fresh Issue of ₹1,291.4 Cr & + Offer for Sale upto 34,200,000 Equity Shares
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Issue Size
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2,752 -2,830 Cr
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Price Band
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427-450
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Face Value
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₹ 1/- Per Share
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Bid Lot
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33 Shares and in multiple thereof
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Post Issue Implied Market Cap
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19,314~ Cr-20,285^ Cr
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Indicative Post Issue Timeline
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Finalisation of Basis of Allotment - On or about 30-08-2024
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Credit of Equity Shares to Demat a/c of Allottees - On or about 02-09-2024
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Listing of the Equity shares on the Stock Exchanges - On or about 03-09-2024
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About Premier Energies IPO
Premier Energies, a prominent player in India’s solar industry, is set to launch an Initial Public Offering (IPO) that promises to further solidify its position in the rapidly growing renewable energy sector. The IPO includes a fresh issue of equity shares worth Rs 1,291 crore and an Offer for Sale (OFS) of up to 3.42 crore shares, translating to approximately Rs 1,539 crore at the upper price band of Rs 450.
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IPO Structure and Stakeholder Participation
The OFS segment sees significant participation from key stakeholders. South Asia Growth Fund II Holdings LLC plans to divest 2.68 crore equity shares, South Asia EBT Trust will sell 1,72,800 equity shares, and promoter Chiranjeev Singh Saluja will offload 72 lakh equity shares. Currently, the company’s promoters collectively hold a 72.23% stake, while the public owns 26.12%, which includes the stake held by South Asia Growth Fund II Holdings LLC. The remaining 1.65% of shares are held by employee trusts. The IPO is being managed by Kotak Investment Banking, JP Morgan, and ICICI Securities, acting as the book-running lead managers.
Strategic Utilization of IPO Proceeds
The proceeds from the fresh issue are earmarked for strategic investments, with a significant portion, Rs 969 crore, allocated to Premier Energies' subsidiary, Premier Energies Global Environment Private Limited (PEGEPL). This investment will partially finance the establishment of a 4 GW Solar PV TOPCon Module manufacturing facility in Hyderabad, Telangana, enhancing the company’s production capabilities. The remaining funds will be utilized for general corporate purposes, ensuring that Premier Energies continues its trajectory of growth and expansion.
Leadership in Solar Manufacturing
Premier Energies has established itself as a leader in the Indian solar industry. By the end of FY24, the company had become the second-largest integrated player in the sector, with an annual installed capacity of 2 GW for cell manufacturing and 4.13 GW for module manufacturing. Moreover, Premier Energies emerged as the largest Indian exporter of solar cells to the US in FY24, underscoring its competitive edge and global reach.
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Operating from five manufacturing facilities, all located in Hyderabad, Premier Energies manages its extensive operations through eight subsidiaries, both in India and abroad. This robust infrastructure has been instrumental in driving the company’s remarkable growth.
Strong Financial Performance
Premier Energies has demonstrated exceptional financial performance, with revenue from operations growing at a compounded annual growth rate (CAGR) of 42.71% between FY21 and FY23. In FY24, the company’s revenue surged by 120% to Rs 3,143 crore, highlighting its rapid expansion and effective business strategy. The company also achieved profitability in FY24, posting a profit of Rs 231 crore, a substantial turnaround from a loss of Rs 13.3 crore in the previous year.
For the June quarter of FY25, Premier Energies reported a revenue of Rs 1,657.37 crore, a significant increase from Rs 611 crore in the same quarter the previous year. The company’s net profit for the quarter soared to Rs 245.73 crore, compared to Rs 43.53 crore in the previous year. Additionally, the EBITDA margin for the quarter rose to 22.16%, up from 12.44% the year before. As of June 2024, Premier Energies' order book stood at an impressive Rs 5,926.57 crore, reflecting strong demand across its product segments.
A Promising Future in Renewable Energy
Premier Energies is well-positioned to capitalize on opportunities in the burgeoning solar industry. The company’s strategic investments, strong financial performance, and leadership in solar manufacturing make it a key player to watch in the global renewable energy landscape. As Premier Energies takes this significant step with its IPO, it not only sets the stage for future growth but also contributes to India’s renewable energy ambitions, moving the country closer to its goal of becoming a global leader in solar power.
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