Premier Energies shares drop up to 9%, trim losses later; stock's 6-month lock-in period ends today; check details

However, the stock recovered later, and when last seen, it was trading 4% lower at ₹887.60.

According to news reports, which quoted Nuvama Alternative and Quantitative Research, as many as 10.6 crore shares of the company will become eligible to trade today as the lock-in period ends. The number of shares mentioned amounts to 23% of the company's outstanding equity.

Once the lock-in period ends, shareholders are free to sell their shares; hence, prices of the scrip drop.

The IPO lock-in period is a specific period following an IPO during which shareholders, such as early investors and company insiders, are not allowed to sell their shares.

Market regulators aim to stabilise stock prices during the post-IPO period by preventing a sudden surge of shares into the market during this temporary restriction.

Premier Energies IPO: Bumper listing

On September 3, 2024, shares of the company made their debut with a sharp premium of over 120% against the issue price of ₹450. The stock made its debut at ₹991, surging 120.22% from the issue price on the BSE.

On the NSE, shares of the firm were listed at ₹990, a jump of 120%.

The ₹2,830 crore initial share sale had a fresh issue of up to ₹1,291.4 crore and an offer-for-sale of up to 3,42,00,000 equity shares.

The price range for the offer was ₹427-₹450 per share.

The company had said that proceeds from the fresh issue to the tune of ₹968.6 crore will be allocated for investment in the company's subsidiary, Premier Energies Global Environment Pvt Ltd, 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, and the remaining funds will be used towards general corporate purposes.

Premier Energies is an integrated solar cell and solar module manufacturer with over 29 years of experience and an annual installed capacity of 2 GW for solar cells and 4.13 GW for solar modules. It has five manufacturing facilities.

Q3 FY25 Results

Premier Energies reported a 490% jump in its consolidated net profit to ₹254.90 crore for the October-December quarter of FY 2024-25 compared to ₹43.15 crore in the year-ago period.

The consolidated total income of the company surged by around 144% to ₹1,749.38 crore in the third quarter of FY25 compared to ₹714.73 crore in the year-ago period. On a quarter-on-quarter basis, the total income rose by 12% compared to ₹1,553.59 crore in the September quarter.

The profit margin surged to 14.59% in the third quarter of FY25 from 6.05% in Q3FY24.