Premier Energies stock advances for 3rd day in a row, gains 18.3%; trades 164% above IPO price

Shares of Premier Energies extended their bullish streak for the third consecutive trading session, rising another 18.3 percent in early morning trade today to reach ₹1,188.90 per share.

The stock debuted on Indian exchanges on September 3 with a massive 120 percent premium over its issue price of ₹450 per share. Since then, it has maintained a strong upward trend, now trading 164 percent higher than its IPO price.

On Thursday, the company announced that it had secured an order from the Uttar Pradesh Department of Agriculture to supply, install, and commission 8,085 solar water pumping systems across various districts. The project, valued at ₹215 crore, includes a five-year comprehensive warranty and is expected to be completed by March 2025.

This initiative falls under Component-B of the PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) scheme, which aims to ensure energy security for farmers in India, along with honouring India’s commitment to increase the share of installed capacity of electric power from non-fossil-fuel sources to 40 percent by 2030 as part of Intended Nationally Determined Contributions (INDCs).

The ₹2,830.40 crore initial public offering (IPO) of Premier Energies was open for subscription from August 27, 2024, to August 29, 2024, with a price band between ₹427 and ₹450 per share. The IPO received a stellar response, as it was oversubscribed up to 75 times. 

About Premier Energies

Premier Energies ranks as India’s second-largest integrated manufacturer of solar cells and solar modules, with an annual installed capacity of 2 GW for solar cells and 3.36 GW for solar modules as of March 31, 2024. It is also the second-largest domestic solar cell producer in terms of capacity as of the same date.

The company's operations cover a broad spectrum, including the production of solar photovoltaic (PV) cells and modules, custom-designed panels for specific applications, execution of EPC (Engineering, Procurement, and Construction) projects, independent power generation, and O&M (Operations and Maintenance) services for EPC projects. It also sells other solar-related products. It runs five manufacturing facilities located in Hyderabad, all of which are situated on its own land.

The country's solar module market is on a growth trajectory, fueled by the government’s ambitious renewable energy targets and increasing demand for clean energy solutions. To capitalise on this momentum, Premier Energies plans to use a portion of its IPO proceeds to enhance its production capabilities by commissioning 4 GW TOPCon solar cell and 4 GW TOPCon solar module lines.

Since fiscal 2017, India's solar module manufacturing capacity has expanded rapidly, growing from 4.2 GW to 39.5 GW by the end of fiscal 2023 at a compound annual growth rate (CAGR) of 45.3 percent. This capacity rose further to 60 GW in fiscal 2024 and is projected to surpass 100 GW by fiscal 2028.

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