ACME Solar Holdings Ltd has launched its Initial Public Offering (IPO) on November 6, 2024, aiming to raise approximately ₹2,900 crores. With a price range set between ₹275 and ₹289 per share, the IPO has garnered significant attention from investors. This article provides an update on the subscription status, grey market premium (GMP), expert reviews, and whether you should consider subscribing to this public offering.
IPO Overview
- IPO Opening Date: November 6, 2024
- IPO Closing Date: November 8, 2024
- Price Band: ₹275 to ₹289 per share
- Total Issue Size: ₹2,900 crores
- Allocation:
- 75% for Qualified Institutional Buyers (QIBs)
- 15% for Non-Institutional Investors (NIIs)
- 10% for Retail Individual Investors (RIIs)
The IPO is primarily focused on raising funds for the development of renewable energy projects, aligning with the growing demand for sustainable energy solutions in India.
Company Profile
ACME Solar Holdings is engaged in the development, construction, ownership, operation, and maintenance of large-scale renewable energy projects. The company has established a strong presence in India with a focus on solar energy generation and is well-positioned to benefit from the increasing shift towards renewable energy sources.
Subscription Status
As of November 7, 2024, the ACME Solar Holdings IPO has been subscribed approximately 47% at 11:00 AM IST. Here’s a breakdown of the subscription status:
- Retail Investors: Subscribed 1.55 times
- Non-Institutional Investors (NIIs): Subscribed 37%
- Qualified Institutional Buyers (QIBs): Subscribed 15%
- Employee Portion: Subscribed 78%
The strong interest from retail investors indicates confidence in ACME Solar’s business model and growth prospects.
Grey Market Premium (GMP)
The current grey market premium for ACME Solar Holdings shares is approximately ₹10, suggesting that shares are trading slightly above the issue price in the unofficial market. This indicates positive sentiment among investors regarding the upcoming IPO.
GMP Insights
- Current GMP: ₹10
- Estimated Listing Price: ₹299 per share (approximately 3.46% higher than the upper end of the IPO price band)
The GMP reflects investor expectations and can provide insights into potential listing performance.
Financial Performance
ACME Solar Holdings has shown significant financial growth:
- Revenue Growth: Total revenue increased from ₹1,294.90 crore in FY23 to ₹1,319.25 crore in FY24.
- Profitability: The company reported a profit of ₹698.23 crore in FY24, a substantial turnaround from previous losses.
These metrics highlight ACME Solar’s operational efficiency and its ability to capitalize on market opportunities within the renewable energy sector.
Expert Opinions
Analyst Insights
- Canara Bank Securities Ltd recommends subscribing to the IPO for long-term gains due to ACME Solar’s robust project pipeline and potential growth in renewable tariffs.
- Swastika Investmart Ltd notes that while the company has faced fluctuating profitability, recent growth trends and strong margins make it a suitable option for long-term investors.
- Analysts emphasize that ACME Solar’s extensive experience in renewable energy positions it well against competitors like Adani Green Energy and ReNew Energy Global PLC.
Should You Subscribe?
Prospective Investors Should Consider:
- Strong Market Positioning: ACME Solar is well-established in India’s renewable energy landscape.
- Growth Potential: The company’s focus on expanding its solar and hybrid projects aligns with national sustainability goals.
Risks to Consider:
- Market Competition: The renewable energy sector is becoming increasingly competitive.
- Regulatory Challenges: Compliance with environmental regulations may pose risks to operations.
Conclusion
The ACME Solar Holdings IPO presents an attractive opportunity for investors looking to enter the renewable energy sector. With a solid financial performance and positive market sentiment reflected in the GMP, potential investors should weigh the risks against the promising growth opportunities before making their investment decisions.
Disclaimer: The views expressed in this article are solely those of individual analysts and do not represent the views of any financial institution or its management. Investors are advised to conduct their own research and consult with certified financial advisors before making any investment decisions regarding this IPO.
