1 week ago
Shares of ACME Solar Holdings Ltd. made a muted debut at the bourses on Wednesday, November 13, as the Gurugram-based company commenced its trading at ₹251 on NSE, a discount of 13.15% over its issue price of ₹289.
Similarly, the stock was listed at ₹259 on BSE, at a discount of 10% over its issue price.
The listing of ACME Solar has been muted than the expectations. Ahead of its listing, the grey market premium (GMP) for the shares of the company stood at -₹4.
Shivani Nyati of Swastika Investmart recommended that investors should exercise caution and consider the potential for volatility in the short term. While the company's long-term growth prospects are encouraging, the near-term market dynamics and the impact of external factors could influence the stock's performance post-listing.
The issue was subscribed 2.75 times on the closing day of bidding.
The retail investors led the demand, subscribing to 3.10 times the portion allocated to them, while the non-institutional investors portion was subscribed 0.97 times so far. Meanwhile, the qualified institutional buyers saw their quota subscribed 3.54 times. The employee category was booked 1.59 times.
ACME Solar had already raised ₹1,300.50 crore from anchor investors ahead of its IPO launch. Anchor book included names like HSBC Global Investment Fund, Edelweiss Life Insurance, Nippon MF, HDFC MF, ICICI Prudential MF, Abu Dhabi Investment Authority, TATA MF, among others.
The IPO, which opened for bidding on November 6, has a fixed price band in the range of ₹275-289 apiece. Investor can apply for a minimum of 51 equity shares in one lot and its multiples thereafter.
The Gurugram-based company’s IPO includes a fresh issue of shares worth ₹2,395 crore and an offer for sale (OFS) of shares valued at ₹505 crore by ACME Cleantech Solutions.
ACME Solar Holdings plans to use the proceeds from the fresh issuance to the extent of ₹1,795 crore towards payment of debt and a portion will be used for general corporate purposes.
Over the years, ACME Solar has diversified and expanded its portfolio from solar power projects to becoming an integrated renewable energy company in India.
The company develops, builds, owns, operates and maintains utility-scale renewable energy projects through its in-house engineering, procurement and construction (EPC) division, as well as its operation and maintenance (O&M) team. ACME Solar generates revenue by selling electricity to various off-takers, including central and state government-backed entities.
As of June 2024, 18 out of its 28 operational projects are located in Andhra Pradesh, Rajasthan and Telangana representing 85% of its total operational projects capacity.
It has an aggregate operational project capacity of 1,320 MW of solar power projects. It also had under construction contracted project capacity of 1,650 MW, including 1,500 MW of solar power projects and 150 MW of wind power projects.
On the earnings front, ACME Solar’s consolidated revenue rose 2% to ₹1,319 crore during FY24 from ₹1,294.90 crore in the previous year. The company had a turnaround from being a loss-making in FY23 to posting a profit of ₹698.23 crore in FY24.
Nuvama Wealth Management, ICICI Securities, JM Financial, Kotak Mahindra Capital Company and Motilal Oswal Investment Advisors were the book-running lead managers, and KFin Technologies was the registrar of the issue.
