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Premier Energies' initial public offering (IPO) has garnered significant interest from investors, with the first day of bidding seeing an oversubscription rate of 2.17 times. The IPO opened for subscription on August 27th and will remain open until August 29th. The company's mainboard segment IPO has reserved 50% of the offering for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 35% for retail investors. Additionally, employees are eligible for a ₹22 discount per equity share.
Premier Energies Limited, established in 1995, specializes in the production of integrated solar cells and panels. Their product portfolio includes solar cells, solar modules, monofacial and bifacial modules, along with EPC and O&M solutions. The company boasts five manufacturing facilities, all strategically located in Hyderabad, Telangana, India.
The IPO's strong performance is evident in the subscription figures. On the first day, 9,51,45,204 share applications were received against an offer of 4,38,72,888 shares. The non-institutional investors (NII) portion led the pack with a subscription of 5,19,83,118 shares, compared to the offered 94,01,333 shares. The retail portion received 4,19,09,571 applications, while the QIB portion remained undersubscribed with only 4,47,150 applications.
Premier Energies' IPO comprises a fresh issue of equity shares worth up to ₹1,291.4 crore and an Offer for Sale (OFS) of up to 3.42 crore shares by existing shareholders. This translates to a total offer size of around ₹1,539 crore, based on the upper price band of ₹450. The OFS includes the sale of 2.68 crore equity shares by South Asia Growth Fund II Holdings LLC, 1,72,800 equity shares by South Asia EBT Trust, and 72,00,000 equity shares by promoter Chiranjeev Singh Saluja.
The promoters of Premier Energies collectively hold a 72.23% stake in the company, while the public owns 26.12%, including holdings by South Asia Growth Fund II Holdings LLC. The remaining 1.65% of the shares are held by employee trusts. Kotak Investment Banking, JP Morgan, and ICICI Securities are the book-running lead managers for the issue.
The grey market price for Premier Energies' IPO stands at +₹390, meaning the shares were trading at a premium of ₹390 in the grey market. Based on the upper end of the IPO price band and the current grey market premium, the estimated listing price of Premier Energies shares is projected to be ₹840 per share, reflecting a significant 86.67% increase over the IPO price of ₹450.
Source: Premier Energies IPO subscribed 2.17 times on day 1; check subscription status, GMP, other details