Premier Energies Gains Rs 846-cr from Anchor Investors Pre-IPO

Premier Energies Ltd, a solar cell and module manufacturer, announced on Monday that it has secured Rs 846 crore from anchor investors. This announcement comes just a day before its initial public offering (IPO) opens for public subscription. According to a circular on the BSE website, the anchor investors include Nomura Funds, Abu Dhabi Investment Authority, HDFC Mutual Fund, ICICI Prudential Mutual Fund, Axis Mutual Fund, Kotak Mutual Fund, Nippon India Mutual Fund, Sundaram Mutual Fund, and UTI Mutual Fund.

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The company has allocated 1.88 crore equity shares to 60 funds at Rs 450 each, totalling Rs 846.11 crore. The IPO, valued at Rs 2,830 crore, will open on August 27 and close on August 29. The price band for the shares is set between Rs 427 and Rs 450 per share.

IPO Details and Allocation

The Hyderabad-based company's IPO consists of a fresh issue of equity shares worth up to Rs 1,291.4 crore and an offer for sale (OFS) of up to 3.42 crore shares by the selling shareholders. At the upper end of the price band, this OFS is valued at Rs 1,539 crore. This brings the total issue size to Rs 2,830 crore.

Under the OFS component, South Asia Growth Fund II Holdings LLC will divest 2.68 crore shares. Additionally, South Asia EBT will offload 1.72 lakh shares and promoter Chiranjeev Singh Saluja will sell 72 lakh shares.

Use of Proceeds

The proceeds from the fresh issue amounting to Rs 968.6 crore will be used for investment in Premier Energies Global Environment Pvt Ltd. This investment will help part-finance the establishment of a 4 GW Solar PV TOPCon Cell and a 4 GW Solar PV TOPCon Module manufacturing facility in Hyderabad, Telangana. The remaining funds will be allocated towards general corporate purposes.

Premier Energies is an integrated solar cell and module manufacturer with nearly three decades of experience. The company boasts an annual installed capacity of 2 GW for solar cells and 4.13 GW for solar modules across five manufacturing facilities.

Financial Performance

As of FY24, Premier Energies reported revenue from operations amounting to Rs 3,143 crore. This marks a significant increase from Rs 1,428 crore in the previous fiscal year.

Kotak Mahindra Capital Company Ltd, J P Morgan India Pvt Ltd and ICICI Securities Ltd are serving as the book-running lead managers for this issue.

The IPO is expected to attract significant interest given the company's strong financial performance and strategic plans for expansion in solar energy manufacturing.