Premier Energies IPO opens tomorrow: Price band, GMP and other details in 10 points

Premier Energies IPO: The initial public offering of Premier Energies worth ₹2,830.40 crore is set to open for subscription on Tuesday, August 27. The mainboard IPO aims to raise about ₹2,830.40 crore through a fresh issue and an offer for sale.

Let's take a look at the key details of Premier Energies IPO:

1. Key dates of Premier Energies IPO

The IPO will open for subscription on Tuesday, August 27, and close on Thursday, August 29. The allotment of shares is expected to be finalised on Friday, August 30, and the company's shares may be listed on the BSE and the NSE on Tuesday, September 3. Those who fail to get the shares after the IPO may expect refunds on Monday, September 2.

2. Premier Energies IPO details

Premier Energies IPO is a combination of fresh issue of 2.87 crore shares worth ₹1,291.40 crore and offer for sale of 3.42 crore shares worth ₹1,539.00 crore. Thus, the mainboard IPO is a book built issue of ₹2,830.40 crore.

3. Premier Energies IPO registrar and book-running lead managers

KFin Technologies is the registrar of the Premier Energies IPO, while Kotak Mahindra Capital Company, JP Morgan India Private Limited and ICICI Securities are the book-running lead managers of the issue.

4. Premier Energies IPO price band, minimum lot size

The company has set the price band at ₹427 to ₹450 per share, with a face value of ₹1. The minimum lot size for an application is 33 shares. This means the minimum investment required by retail investors is ₹14,850.

5. What are the objectives of Premier Energies IPO?

The company wants to invest the net proceeds of the issue in its subsidiary Premier Energies Global Environment Private Limited to finance the establishment of a 4 GW Solar PV TOPCon Cell and 4 GW Solar PV TOPCon Module manufacturing facility in Hyderabad. Some of the proceeds will be used for general corporate purposes.

6. Business overview of Premier Energies?

The company manufactures integrated solar cells and solar modules. As per the RHP (Red Herring Prospectus), it has five manufacturing facilities situated on land it owns in Hyderabad, with an annual installed capacity of 2 GW for solar cells and 4.13 GW for solar modules.

7. What is the industry overview of Premier Energies?

The sector's long-term growth outlook looks bright. According to the company's RHP, nearly 75 per cent of electricity will be generated from renewables by 2050. In India, the share of renewables in electricity generation stood at 20.7 per cent in FY24. As per the climate actions presented by the Indian government during COP-26, about 50 per cent of the country’s energy requirement would be met by renewable sources by 2030.

8. Financial performance of Premier Energies

The company's revenue from operations has seen a sustained rise since FY22. For FY22, FY23 and FY24, the company's revenue from operations rose to nearly ₹7,428.71 million, ₹14,285.34 million and ₹31,437.93 million, respectively. For Q1FY25, the company's revenue stood at ₹16,573.67 million against ₹6,110.23 million year-on-year.

The company suffered a loss of ₹143.60 million in FY22, which narrowed to ₹128.05 million in FY23. In FY24, the company saw a profit of ₹2,313.60 million. For Q1FY25, the company's profit stood at ₹1,981.60 million against ₹313.29 million in the same quarter last year.

9. What are the key risks of Premier Energies?

According to the company's RHP, its revenue from operations depends on a limited number of customers. The company's business prospects depend on the success of two products: solar cells and modules. The company has significant working capital requirements.

10. What is the current GMP of Premier Energies IPO?

According to stock market sources, Premier Energies IPO's last grey market premium (GMP) was ₹336. This means that the estimated listing price of the stock is ₹786, which is GMP+the price band of the issue at ₹450. The last GMP shows the stock could be listed at a premium of 74.67 per cent.

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