Premier Energies Limited

About Premier Energies Limited  Incorporated in 1995, Premier Energies Limited is an integrated solar photovoltaic cell and solar module manufacturer.  Its business operations involve the manufacturing of solar photovoltaic (PV) cells, and solar modules using different module technologies. It sells customisable and ad hoc solar-related products depending on customer requirements. It also executes EPC (Engineering, Procurement, and Construction) projects along with O&M (Operations and Maintenance) services, and carries out independent power production through its 2 MW solar power plant in Jharkhand, India.  It operates five manufacturing facilities in Hyderabad, Telangana with an annual installed capacity of 2 GW for solar cells and 4.13 GW for solar modules. In fact, its unit II manufacturing facility is India’s first LEED gold rated solar manufacturing facility as certified by the US Green Building Council.  Some of its customers include TATA Power Solar Systems, Panasonic, Continuum, Shakti Pumps, First Energy, Bluepine Energies, Luminous, Hartek, Green Infra Wind Energy, Madhav Infra Projects, SolarSquare Energy and Axitec. It had an order book of ₹5,926 crore as of 31 July 2024.  It saw a CAGR rise of 61% in its revenue from operations between FY22 and FY24. However, the company’s profitability has been volatile. The company reported net loss in FY22 and FY23, but bounced back to report net profit of ₹231 crore in FY24.  Moreover, the Indian solar module consumption market (volume) is poised to grow at 40% CAGR over the next five years. In volume terms, consumption of modules in FY2024 was approximately 28.3 GW. The market is expected to grow further to 58 GW by FY28 on the backdrop of accelerated solar capacity addition which could benefit the company.  And now, Premier Energies Limited is coming out with its initial public offer (IPO). The total IPO issue size is ₹2,830.40 crore, comprising fresh issue, aggregating to ₹1,291.40 crore, as well as an offer for sale, aggregating to ₹1,539 crore. The money raised from the fresh issue will be utilised for investment in its subsidiary to finance manufacturing facility in Hyderabad and general corporate purposes. Its shares will be listed on the NSE and BSE.  Here are key details about the Premier Energies IPO:     Company Name  Premier Energies Limited   Company Type  Private    Company Established On  1995   Premier Energies Limited IPO Opening Date  27th August, 2024    Premier Energies Limited IPO Closing Date  29th August, 2024   Premier Energies Limited IPO Allotment Status  30th August 2024    Credit of Shares to the Demat Account  2nd September 2024   Premier Energies Limited IPO Listing Date  3rd September 2024    Premier Energies Limited IPO Face Value  ₹1 per share   Premier Energies Limited IPO Lot Size  33 shares    Premier Energies Limited IPO Issue Size  Approx ₹2,830.4 crore   Premier Energies Limited IPO to be Listed on  BSE, NSE    Premier Energies Limited IPO Price band  ₹ 427 – ₹ 450 per share        Financial snapshot     Particulars  FY22  FY23  FY24  Q1FY25    Revenue  ₹ 742 crore  ₹ 1,428 crore  ₹ 3,147 crore  ₹ 1,657 crore    Net Profit/Loss  ₹ -14.4 crore  ₹-13.3 crore  ₹ 231 crore  ₹ 198 crore               Here’s a quick look at Premier Energies Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)  Strengths and opportunities   Integrated solar cell and solar module manufacturer with backwards integration which allows it access to the market for DCR solar modules.  Long track record in the solar module manufacturing sector with an experience of 29 years being recognised as “top performers” in module reliability from PV Evolution Labs in 2023 and 2024.  Experienced in solar cell line production which benefits it as it operates in a blooming market as the annual installed capacity for solar modules in India has increased from 7.6 GW in FY20 to ~72 GW in FY24.  Diversified customer base with customers from 23 states and union territories in India as of 30 June 2024.  Large customer base with a total number of 200 customers from the domestic market and 27 customers from the overseas market as of FY24.  Robust order book with a four year module supply agreement with an Indian renewable power producer for the supply of up to 600 MW of solar modules and a letter of understanding for the supply of 500 MW of solar cells to a customer based in the United States.   Risks and threats   Dependent on some customers as it received 43% of its total revenue from operations from its top 5 customers in FY24.  Exposed to the risks of geographical concentration as all its manufacturing facilities are located in Hyderabad, Telangana.  Incurred losses of ₹14.4 crore and ₹13.3 crore in FY22 and FY23 respectively, due to the unavailability of specialised engineers from China who were required for certain installation and process stabilisation activities at the unit II manufacturing facility.  Most of its subsidiaries have incurred losses at some point in the last three fiscals and the three months ended 30 June, 2024.  Has consistently experienced negative cash flows amassing to ₹15.5 crore in FY22 and ₹41.0 crore as of 30 June 2024 from investing activities due to purchases of property, plant and equipment.  Experienced a significant decline in actual production and annual installed capacity of solar modules as it dropped from 470 MW as of FY23, to 260 MW as of FY24, to zero MW as of 30 June, 2024 due to decommissioning.  Faces intense competition from Waaree Energies, Mundra Solar, Jupiter Solar, Vikram Solar, Goldi Solar, RenewSys India and Websol Green Energy.            Premier Energies Limited IPO details  | Premier Energies Limited IPO date  According to the offer document filed by the company with the SEBI, the Premier Energies IPO’s opening date – in other words, the Premier Energies IPO launch date – will be 27th August 2024. The Premier Energies IPO closing date is 29th August 2024. After this, investors will be updated about the allotment status on 30th August 2024.  Investors who have been allotted shares can expect them to be credited to their demat account on 2nd September 2024. The Premier Energies IPO listing date is 3rd September 2024. The listing date is the date on which a company's shares are listed on the bourses—NSE and BSE.  | Premier Energies Limited IPO Price Band  The IPO is a fresh issue and an offer for sale. The Premier Energies IPO price band has been set between ₹427 and ₹450 per share. Interested investors can choose a price within this band to apply for the IPO.  The Premier Energies IPO listing price will be determined on 3rd September 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.  | Premier Energies Limited IPO Lot size  The Premier Energies IPO details have been declared. The Premier Energies IPO lot size is set at 33 shares, and an investor can apply for a minimum of 1 lot. Meanwhile, the Premier Energies IPO issue size is approx ₹2,830 crore.           How to pre-apply for the Premier Energies Limited IPO?  You can pre-apply for the Premier Energies Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription.  Follow these steps to pre-apply for the IPO:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Premier Energies Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Pre-Apply’  Accept the mandate on your UPI app            How to apply for the Premier Energies Limited IPO?  If you are interested in this investment opportunity but unsure how to apply for the Premier Energies Limited IPO, here we are listing out the steps for you.  When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Premier Energies Limited IPO on Upstox:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Premier Energies Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Apply’  Accept the mandate on your UPI app            How to check the Premier Energies Limited IPO allotment status?  When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes.  Here’s a step-by-step guide on how to check the Premier Energies Limited IPO allotment status:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover page, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, you will find the ‘View all’ option  Once you click on ‘View all’, you will be directed to the ‘IPO’ tab  In the ‘IPO’ tab, click on ‘My applications’  In ‘My applications’, under the History section, your Premier Energies Limited IPO allotment status will be mentioned    Check Allotment Status           Open a demat account with Upstox to apply for the Premier Energies Limited IPO  To apply for the Premier Energies Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.  Here is a step-by-step guide on how to open a demat account with Upstox:   Click here to visit the demat account opening page on the Upstox website.  Enter your phone number and other essential details to begin opening a demat account.  Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed.  Complete the e-verification using the OTP sent to your registered mobile number.   This is all it takes to open a demat account with Upstox. Easy and quick, right?   Open Demat Account           Upstox – trading app to apply for the Premier Energies Limited IPO  Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.  You can apply for the Premier Energies Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.  In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.