Premier Energies IPO opens on Tuesday: Check price band, lot size, business model & more

The initial public offering (IPO) of Premier Energies Ltd will open for subscription on Monday, August 27. The three-day window for subscription will close on Wednesday, August 29. The IPO is a book-built issue worth ₹2,830.4 crore.

Kfin Energies Limited is the issue's registrar. Kotak Mahindra Capital Company Limited, JP Morgan India Private Limited, and ICICI Securities Limited are the book-running lead managers.

The company is expected to conduct an anchor investor allocation round on August 26, ahead of the IPO launch. Here are the key details about the mainboard IPO.

Premier Energies IPO: Important dates

The Premier Energies IPO is set to open on August 27. The subscription window for the public issue will close on August 29.

The IPO share allotment is likely to be finalised on August 30. Refunds for unsuccessful bidders and credit of shares to the demat account for successful bidders will be done on September 2.

Premier Energies IPO listing date has been tentatively fixed as September 3. Shares of Premier Energies Limited will be listed on the BSE and NSE.

Premier Energies' business model and top clients

Premier Energies Limited, established in 1995, manufactures integrated solar cells and solar panels. The company offers a range of products, such as solar modules, solar cells, and myofascial and bifacial modules. It also offers services for engineering, procurement, and construction (EPC) projects in the solar sector. It has five manufacturing plants in Hyderabad, Telangana.

The company's key clients include NTPC, TATA Power Solar Systems Ltd, Panasonic Life Solutions Private Ltd, and Madhav Infra Projects Ltd. It exports products to the United States, China, South Korea, Hong Kong, Bangladesh, South Africa, Nepal, France, and Malaysia.

Premier Energies key financials

The company’s total revenue in FY24 more than doubled to ₹3,171.31 crore compared to ₹1,463.21 crore in FY23. Premier Energies Ltd reported a total revenue of ₹767.7 crore in FY22. Between FY22 and FY24, its total income grew at a CAGR of 60.5%.

Its net profit in FY24 stood at ₹231.36 crore, compared to a loss of ₹13.34 crore in FY23. The solar cell producer also reported a loss of ₹14.41 crore in FY22.

Its total assets increased significantly to ₹3,554.13 crore in FY24 against ₹2,110.69 crore in FY23 and ₹1,341.49 crore in FY22.

Premier Energies IPO price band and lot size

Premier Energies IPO price band has been fixed at ₹427 to ₹450 per equity share with a face value of ₹10. The minimum application size for retail investors is a single lot of 33 shares, aggregating to an investment of ₹14,850.

Premier Energies IPO offer size

The solar cell manufacturer's public offer consists of a fresh issue of 2.87 crore shares, amounting to ₹1,291.4 crore, and an offer-for-sale (OFS) component of 3.42 crore shares, amounting to approximately ₹1,539 crore.

Qualified Institutional Buyers (QIBs) will be allocated 50% of the shares of Premier Energies IPO. The company has reserved 15% of the issue size for non-institutional investors and 35% for the retail category.

Premier Energies IPO objective

The net proceeds of the Premier Energies IPO will be used for investments in the company’s subsidiary, Premier Energies Global Environment Private Limited, for part-financing the establishment of a 4 GW Solar PV TOPCon Cell and 4 GW Solar PV TOPCon Module manufacturing facility in Hyderabad, Telangana. A portion of the proceeds will also be used for general corporate purposes.