ACME Solar IPO: A Closer Look at India’s Renewable Energy Giant

ACME Solar IPO: A Closer Look at India’s Renewable Energy Giant

Acme Solar IPO opens for subscription on November 6th

ACME Solar IPO: A Closer Look at India’s Renewable Energy Giant The price band for Acme Solar Holdings Limited’s IPO has been set between ₹275 and ₹289 per equity share, with each share having a face value of ₹2. Investors can subscribe to the IPO from Wednesday, November 6, through Friday, November 8. Anchor investors will receive allocations on Tuesday, November 5. The IPO lot size is set at 51 equity shares, with additional purchases in multiples of 51.

The offering reserves at least 75% of shares for Qualified Institutional Buyers (QIB), up to 15% for Non-Institutional Investors (NII), and no more than 10% for retail investors. An additional portion of equity shares totaling up to ₹10 crore is reserved for employees. Tentatively, the basis of share allotment will be determined on Monday, November 11. Refunds, along with crediting of shares to allottees’ demat accounts, are expected on Tuesday, November 12. Acme Solar’s shares are anticipated to be listed on the BSE and NSE on Wednesday, November 13.

Founded in June 2015, Acme Solar Holdings focuses on generating electricity through renewable sources like wind and solar power in India. It is involved in the development, construction, ownership, operation, and maintenance of large-scale renewable energy projects via an in-house engineering, procurement, and construction (EPC) division and an operations and maintenance (O&M) team. The company generates revenue by selling electricity to various government-backed customers at both central and state levels.

The IPO, valued at ₹2,900 crore, includes a fresh issue of ₹2,395 crore and an offer-for-sale of ₹505 crore by ACME Cleantech Solutions Private Ltd, the promoter. Proceeds are earmarked for loan repayment or prepayment by subsidiaries and general corporate purposes. Nuvama Wealth Management Ltd, ICICI Securities Ltd, JM Financial Ltd, Kotak Mahindra Capital Company Ltd, and Motilal Oswal Investment Advisors Ltd are the book-running lead managers for this IPO, with Kfin Technologies Ltd serving as the registrar. As of the latest update, the IPO grey market premium is ₹0, suggesting the shares are trading at the issue price of ₹289 without any premium or discount in the grey market.

ACME Solar IPO: A Closer Look at India’s Renewable Energy Giant Acme Solar Holdings’ IPO, valued at ₹2,900 crore, will open for subscription on Wednesday, November 6, 2024, and will close on Friday, November 8. Priced between ₹275 and ₹289 per share, the IPO includes a fresh issue of ₹2,395 crore and an offer-for-sale (OFS) of ₹505 crore by promoter ACME Cleantech Solutions. Share allocation for this offering is expected to be finalized on Monday, November 11. Refunds for unsuccessful bidders will begin processing the same day, with shares credited to successful allottees’ Demat accounts on November 12. The company’s shares are anticipated to be listed on the NSE and BSE on November 13.

Nuvama Wealth Management Ltd, ICICI Securities Ltd, JM Financial Ltd, Kotak Mahindra Capital Company Ltd, and Motilal Oswal Investment Advisors Ltd serve as the book-running lead managers for this IPO, with Kfin Technologies Ltd as the registrar. Acme Solar operates a total of 1,340 MW in solar projects, with 3,250 MW of contracted projects under construction and 1,730 MW in the awarded project phase.

For the fiscal year 2023-24, Acme Solar reported a profit of ₹697.8 crore, a significant turnaround from a ₹3.17 crore loss in the previous year. The company also saw its operational revenue rise by 1.9% year-over-year, reaching ₹1,319.3 crore in FY24. Acme Solar’s business model focuses on developing, constructing, owning, and maintaining large-scale renewable energy projects, generating income by selling electricity to federal and state government-backed entities.

ACME Solar IPO: A Closer Look at India’s Renewable Energy Giant

ACME Solar Holdings IPO: Key Details and Information to Consider Before Subscribing

1. Key Dates: The subscription period for ACME Solar Holdings’ IPO begins on November 6, 2024, and ends on November 8, 2024. The allocation of shares is expected to be finalized on Monday, November 11, 2024.

2. IPO Size: This book-built offering is valued at ₹2,900 crore, comprising an offer-for-sale of 1.75 crore shares worth ₹505 crore and a fresh issue of 8.29 crore shares for ₹2,395 crore.

3. Listing Date: The expected listing date for ACME Solar Holdings on the BSE and NSE is Wednesday, November 13, 2024.

4. Price Band: The price band for the IPO is set between ₹275 and ₹289 per share. The minimum lot size for an application is 51 shares.

5. Investment Requirements: For retail investors, the minimum investment to qualify is ₹14,739. For Non-Institutional Investors (bNII), the minimum investment is 68 lots (3,468 shares), totaling ₹1,002,252. For Small Non-Institutional Investors (sNII), it is 14 lots (714 shares), amounting to ₹206,346.

6. Lead Managers: The book-running lead managers for this IPO include Nuvama Wealth Management Ltd, ICICI Securities Ltd, JM Financial Ltd, Kotak Mahindra Capital Company Ltd, and Motilal Oswal Investment Advisors Ltd. Kfin Technologies Ltd serves as the registrar for the offering.

7. Company Overview: Founded in June 2015, ACME Solar Holdings is a prominent Indian producer of electricity from renewable sources, specifically wind and solar energy. The company focuses on the development, construction, ownership, operation, and maintenance of large-scale renewable energy projects.

8. Promoters: The company’s promoters include Mamta Upadhyay, Manoj Kumar Upadhyay, ACME Cleantech Solutions Private Limited, MKU Holdings Private Limited, and the Upadhyay Family Trust.

9. Use of Proceeds: The net proceeds from the IPO will be used to repay or partially pay off outstanding loans from subsidiaries and for general corporate purposes.

10. Financial Performance: ACME Solar Holdings saw a revenue increase of 7.71% in FY24 compared to FY23, with net profit rising significantly from a previous loss. Its listed peers are Adani Green Energy Ltd and ReNew Energy Global PLC. As of now, the grey market premium for ACME Solar Holdings’ IPO is Nil, indicating no premium in the grey market.