Alpex Solar IPO triples investors’ wealth on first day, shares list at 186% premium
Upstox
3 min read • Updated: February 15, 2024, 12:02 PM
Summary
The Alpex Solar IPO was open for subscription from February 8 to February 12. The price band of the book-built issue was fixed at ₹109-115 per share.
Solar panel manufacturer Alpex Solar Ltd has made a stellar debut at the stock exchanges as it was expected after the high demand for the IPO. Alpex Solar shares listed at a whopping 186% premium on the NSE SME platform on Thursday, February 15.
The stock made its debut at ₹329 on NSE compared to its issue price of ₹115. By 10:07 am, the share price rose further to hit the day’s high of ₹345.45, up 200%, or thrice of the issue price.
Analysts were expecting a strong listing as the initial public offering (IPO) had received an overwhelming subscription of 303 times.
The portion reserved for non-institutional investors (NIIs) was oversubscribed by a humongous 503 times, while the retail investors’ quota saw a subscription of 352 times. The qualified institutional buyers’ (QIB) category was subscribed 141.3 times.
Alpex Solar IPO: Offer size, price band and minimum investment
The ₹74.52-crore Alpex Solar IPO comprised only a fresh issuance of 6.48 million equity shares with a face value of ₹10 each. The price band of the book-built issue was fixed at ₹109-115 per share.
The minimum bid size was 1,200 shares. This meant that retail investors needed to invest a minimum of ₹1.38 lakh, while NIIs were required to invest in a minimum of 2 lots (2,400 shares), amounting to ₹2.76 lakh. The IPO was open for subscription from February 8 to February 12.
Of the 6.48 million shares on offer, almost 2.15 million equity shares were reserved for retail investors. Another 1.23 million shares were kept aside for QIBs, while 1.85 million shares accounted for the anchor portion. The NII portion was fixed at 0.92 million equity shares, while 0.32 million shares were kept for market makers.
According to Alpex Solar, out of the total funds raised from the IPO, ₹19.55 crore will be utilised to upgrade and expand the company’s existing solar module manufacturing facility. The company aims to increase the capacity from 450 MW to 1.2 GW in the existing manufacturing unit.
The company will invest another ₹12.94 crore to set up a new manufacturing unit for its solar module’s aluminium frame. Almost ₹20.49 crore will be kept aside to meet the company’s working capital requirement, with the balance amount to be used for general corporate expenses.
Corporate Capital Ventures Pvt. Ltd was the book running lead manager of the Alpex Solar IPO, while Skyline Financial Services Pvt. Ltd was its registrar. SS Corporate Securities was appointed as the market maker for the IPO.
About the company
Founded in 1993, Alpex Solar Ltd initially operated as an international trading house that specialised in trade of synthetic yarns and knitting machinery components.
However, the company later diversified in wind power generation, leading Alpex to evolve into a manufacturer of solar photovoltaic (PV) panels.
Since 2005, Alpex has been engaged in the manufacturing of solar photovoltaic panels in the industry. The company had recorded a consolidated net profit of ₹3.78 crore during 2022-23 compared with ₹20 lakh in 2021-22. Revenue from operations during the same period increased to ₹194.68 crore in FY23 from ₹165.6 crore in FY22.
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