Premier Energies IPO booked 6.61x on Day 2, NIIs steal the show. Check GMP, key dates, review. Apply or not?

Premier Energies IPO subscription status: Premier Energies, a manufacturer of solar cells and modules, is experiencing continued momentum in its initial public offering (IPO) on the second bidding day, with non-institutional investors taking the lead in subscriptions, followed by retail investors. Premier Energies IPO subscription status is 6.61 times, as per BSE data.

The initial share-sale received bids for 29,48,83,545 shares against 4,46,40,825 shares on offer, according to BSE data.

Non-institutional investors' quota was oversubscribed by 18.83 times, while the retail investors category saw a subscription of 4.21 times. The qualified institutional buyers (QIBs) portion received a subscription of 1.40 times, and the employee portion has been subscribed 6.62 times.

The IPO is set to close on August 29 and has set a price range of ₹427 to ₹450 per equity share, having a face value of ₹1. Anchor investors have infused ₹846 crore into the company.

QIB are allotted up to 50% of the shares in the Premier Energies IPO public issue, while 15% are earmarked for NII. Retail investors have access to 35% of the offering. Additionally, employees can avail a discount of ₹22 per equity share.

Premier Energies has 29 years of experience as a manufacturer of integrated solar cells and solar modules, with an annual installed capacity of 2 GW for solar cells and 4.13 GW for solar modules. The company operates five manufacturing facilities.

Premier Energies IPO Review

Indsec Securities Ltd

Premier Energies, which manufactures solar modules with an installed capacity of 4.13 GW and solar cells with an installed capacity of 2 GW, is expected to benefit greatly from these growth tailwinds, according to the brokerage. Furthermore, with regard to installed capacity for the production of solar cells, the firm is second only to Mundra Solar, which has a 50% market share. The additional 4 GW Solar PV TOPCon Cell and 4 GW Solar PV TOPCon Module manufacture would be funded by net proceeds. Increasing export earnings is another priority (particularly US). With an order book of ₹5926.6 crore as of July 2024, it gives superior short-term revenue visibility and is well-diversified across its categories.

“Given the significant growth opportunity and sound fundamental we are optimistic on the IPO and thereby assign “Subscribe” rating on the stock,” the brokerage said.

GEPL Capital Private Ltd

Premier Energies is a well-established solar cell and module producer in India with a wide range of satisfied customers, according to the brokerage. The firm has witnessed a recent boost in profitability and has a sizable order book of ₹5,926 crore. Premier Energies has pioneered India's first bifacial monocrystalline PERC solar cell and covers 28% of the country's total capacity with an annual installed capacity of 2.0 GW. Premier Energies has shown impressive financial development over the last three years, with sales and EBITDA growing by 62% and 146% CAGR, respectively.

"The company became profitable in FY24 with a profit of ₹231 crore. Despite its extensive experience and strong international relationships, Premier Energies faces substantial industry competition. As the Indian solar module consumption market is projected to grow at a 40% CAGR over the next five years, Premier Energies is well-positioned to capitalise on this growth. Hence, we recommend an "Subscribe" rating for the issue," the brokerage said.

Premier Energies IPO details

The initial public offering (IPO) comprises a fresh issuance of equity shares totaling up to ₹1,291.4 crore and an Offer for Sale (OFS) of a maximum of 3.42 crore shares by the existing shareholders, which amounts to approximately ₹1,539 crore based on the upper band price of ₹450.

As part of the offer-for-sale component, South Asia Growth Fund II Holdings LLC (SAGF II) will sell 2.68 crore equity shares, South Asia EBT Trust will divest 1,72,800 equity shares, and promoter Chiranjeev Singh Saluja will offload 72,00,000 equity shares.

The company's promoters collectively possess a 72.23% stake, while the public holds 26.12% of the shares, which includes ownership by South Asia Growth Fund II Holdings LLC, and the remaining 1.65% shares are held by employee trusts.

The issue has book-running lead managers in the form of Kotak Investment Banking, JP Morgan, and ICICI Securities.

Premier Energies IPO GMP today

Premier Energies IPO grey market price is +395. This indicates Premier Energies share price were trading at a premium of ₹395 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Premier Energies share price was indicated at ₹845 apiece, which is 87.78% higher than the IPO price of ₹450.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.