Premier Energies sets price band for Rs 28.3 billion IPO

Premier Energies Ltd, a solar cell and module manufacturer, has set a price band of Rs 427-450 per share for its Rs 28.3 billion initial public offering (IPO). The IPO will open from August 27 to August 29, with bidding for anchor investors starting on August 26.

The offering includes a fresh issue of shares worth Rs 12.91 billion and an offer-for-sale (OFS) of up to 34.2 million shares, valued at Rs 15.39 billion at the upper price band. The OFS will see South Asia Growth Fund II Holdings LLC selling 26.8 million shares, South Asia EBT selling 1.72 million shares, and promoter Chiranjeev Singh Saluja selling 7.2 million shares.

Proceeds from the fresh issue, amounting to Rs 9.69 billion, will be allocated to Premier Energies Global Environment Pvt Ltd for establishing a 4 GW Solar PV TOPCon Cell and 4 GW Solar PV TOPCon Module manufacturing facility in Hyderabad, along with other corporate needs. After the IPO, Premier Energies is expected to have a market capitalization exceeding Rs 200 billion.

With 29 years of experience, Premier Energies has a production capacity of 2 GW for solar cells and 4.13 GW for solar modules across five manufacturing facilities. The company reported a revenue increase to Rs 31.43 billion in fiscal 2024, up from Rs 14.28 billion the previous year.

Kotak Mahindra Capital Company Ltd, J.P. Morgan India, and ICICI Securities are the lead managers for the IPO.