Premier Energies makes stunning debut

The scrip was listed at Rs 991, exhibiting a significant premium of 120.22% to the issue price.

So far, the stock has hit a high of 993.45 and a low of 860. On the BSE, over 28.78 lakh shares of the company were traded in the counter so far.

The initial public offer (IPO) of Premier Energies was subscribed 74.38 times. The issue opened for bidding on 27 August 2024 and it closed on 29 August 2024. The price band of the IPO was fixed between Rs 427 to 450 per share.

The IPO comprised an offer for sale of 3.42 crore equity shares and fresh issue of equity shares, aggregating to Rs 1,291.4 crore.

Of the net proceeds from the fresh issue, about Rs 968.60 crore will be used for investment in Premier Energies Global Environment, a subsidiary, for part-financing the establishment of 4 GW Solar PV TOPConcell and 4 GW Solar PV TOPConmodule manufacturing facility in Hyderabad. The balance will be for general corporate purposes.

Ahead of the IPO, Premier Energies on Monday, 26 August 2024, raised Rs 846.11 crore from anchor investors. The board allotted 1.88 lakh shares at Rs 450 each to 60 anchor investors.

Premier Energies is an integrated manufacturer of solar PV cells and solar modules, including custom-made modules for specific applications. EPC projects comprise end-to-end solar services for ground-mounted, rooftop, floating, canal bank, canal top and hybrid power generation systems as well as O&M services for projects executed. Further, the company makes customized products such as bespoke solar tiles. It is an independent power producer, generating 2MW solar power from its plant in Jharkhand.

The aggregate annual installed capacity for solar cells stood at 2 GW and solar modules 4.13 GW, spread across five manufacturing facilities in Hyderabad, as of August 2024. Of the total annual installed capacity, about 1.25 GW of solar cell and 1.6 GW of solar module manufacturing is housed in PEL, a 74% subsidiary. The balance is with two other 100% subsidiaries.

The firm reported a net profit of Rs 198.16 crore and sales of Rs 1,657.37 crore for the three months ended on 30 June 2024.