Premier Energies files draft papers for ₹1,500-crore IPO: Check issue size and other details

Premier Energies Limited, a solar cell and solar module manufacturer, has submitted its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for launch of its initial public offering (IPO). The company aims to raise over ₹1,500 crore through the IPO.

Premier Energies Limited IPO offer size and other details

The Premier Energies Limited IPO comprises a fresh issue of equity shares worth ₹1,500 crore. The public issue will also include an offer-for-sale (OFS) component of 2.82 crore equity shares by existing shareholders, South Asia Growth Fund II Holdings LLC, and South Asia EBT Trust. Promoter Chiranjeev Singh Saluja is also expected to offload 42 lakh equity shares through the OFS.

Kotak Mahindra Capital Company Limited, JP Morgan India Private Limited and ICICI Securities Limited are the book running lead managers (BRLMs) for the Premier Energies Limited IPO. KFin Technologies Limited has been appointed as the registrar to the offer.

The Hyderabad-based company is also planning a pre-IPO placement of specified securities, amounting up to ₹300 crore, before submitting the DRHP to the registrar of companies. The pricing for this placement will be determined by the company in consultation with the BRLMs. If the pre-IPO placement is successful, the funds raised will be deducted from the fresh issue.

The price band, employee discount (if applicable), and lot size for the IPO will be determined by the company in consultation with the BRLMs.

As per the DRHP, promoters collectively hold a 72.23% stake on a fully diluted basis, with 68.75% held by the promoters themselves and 3.48% held by the promoter group. The investors— South Asia Growth Fund II Holdings LLC and South Asia EBT Trust— hold a combined 21% stake in the company.

Premier Energies Limited IPO objectives

Premier Energies Limited intends to use the net proceeds from the offering for various purposes, including an investment of ₹1,168 crore in its subsidiary, Premier Energies Global Environment Private Limited. This investment will partially finance the establishment of a 4 GW Solar PV TOPCon Cell and 4 GW Solar PV TOPCon Module manufacturing facility in Hyderabad, Telangana. The remaining funds will be used to meet general corporate expenses.

About Premier Energies Limited

Incorporated in 1995, Premier Energies Ltd is an integrated solar cell and solar module manufacturing company, with backing from GEF Capital, a private equity investor based in Washington DC.

Premier Energies Ltd operates manufacturing units across three locations in Telangana, spanning a total land area of around 44.91 acres. As of March 31, 2024, the annual production capacity of Premier Energies Ltd is 2 GW for solar cells and 3.36 GW for solar modules. Ongoing development efforts are underway for additional Topcon Cell and module lines across a combined area of 75 acres.

To know more about IPOs listing, schedule and upcoming IPOs, click here