SAGF II-backed Premier Energies IPO price band fixed at ₹427-450 per share

Premier Energies IPO price band: The Premier Energies Limited IPO price band has been fixed in the range of ₹427 to ₹450 per equity share of the face value of ₹1. The Premier Energies IPO date of subscription is scheduled for Tuesday, August 27, and will close on Thursday, August 29. The allocation to anchor investors for the Premier Energies IPO is scheduled to take place on Monday, August 26.

The floor price and the cap price are 427 times and 450 times the face value of the equity shares respectively.

The Premier Energies IPO has allocated up to 50% of the shares in the public issue for qualified institutional buyers (QIB), 15% for non-institutional investors (NII), and a 35% of the offer is set aside for retail investors. Eligible employees participating in the employee reservation portion can avail of a discount of ₹22 per equity share.

The basis of allotment of shares for the Premier Energies IPO is currently scheduled to be finalised on Friday, August 30. Refunds will be initiated by the company on Monday, September 2, and the shares will be credited to the demat account of allottees on the same day after the refund process.

Founded in April 1995, Premier Energies Limited specialises in the production of integrated solar cell and solar panels. Its range of offerings includes solar cell, solar module, monofacial and bifacial modules, as well as EPC and O&M solutions.

The company operates five manufacturing facilities, all located in Hyderabad, Telangana, India.

Premier Energies Limited serves a diverse client base which includes NTPC, TATA Power Solar Systems Ltd, Panasonic Life Solutions Private Ltd, Madhav Infra Projects Ltd, and various others. The company has also exported its products to the United States, Hong Kong, South Africa, Bangladesh, Norway, Nepal, France, Malaysia, Canada, Sri Lanka, Germany, Hungary, the United Arab Emirates, Uganda, Turkey, South Korea, China, Taiwan, and the Philippines.

As per the red herring prospectus (RHP), the company's sole listed peers is Websol Energy System Ltd.

From FY21 to FY23, the company's operating revenue grew at a compound annual growth rate (CAGR) of 42.71%. Revenue for FY24 rose by 120% to ₹3,143 crore. In FY24, the firm generated a profit of ₹231 crore, up from a deficit of ₹13.3 crore the previous year.

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.

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