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The article provides a comprehensive guide for investors interested in subscribing to the upcoming Initial Public Offering (IPO) of ACME Solar Holdings Limited. The IPO is scheduled to open on November 6th, 2024, and will close on November 8th, 2024. The allocation is expected to be finalized on November 11th, 2024, with the listing taking place on the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) on November 13th, 2024.
The IPO is a book-built offering with a total size of ₹2,900 crores. It consists of an Offer for Sale (OFS) of 1.75 crore shares worth ₹505 crores and a fresh issue of 8.29 crore shares for ₹2,395 crores. This structure allows existing shareholders to sell some of their shares while the company raises capital for future growth.
The IPO price band is set at ₹275 to ₹289 per share. Investors can apply for a minimum of 51 shares, which translates to a minimum investment of ₹14,739 for retail investors. For bNII (bid for non-institutional investors), the minimum lot size is 68 lots (3,468 shares) for an investment of ₹1,002,252. Similarly, for sNII (bid for non-institutional investors), the minimum lot size is 14 lots (714 shares) for an investment of ₹206,346.
The lead managers for the IPO are Nuvama Wealth Management Limited, ICICI Securities Limited, JM Financial Limited, Kotak Mahindra Capital Company Limited, and Motilal Oswal Investment Advisors Limited. The registrar for the issue is Kfin Technologies Limited. These entities play a crucial role in managing the IPO process, including investor relations and ensuring compliance with regulatory requirements.
ACME Solar Holdings Limited is an Indian company specializing in the development, construction, ownership, operation, and maintenance of large-scale renewable energy projects. Founded in June 2015, the company has established itself as one of the largest producers of electricity from wind and solar energy in India. The company's promoters are Mamta Upadhyay, Manoj Kumar Upadhyay, ACME Cleantech Solutions Private Limited, MKU Holdings Private Limited, and Upadhyay Family Trust.
The company intends to utilize the net proceeds from the IPO to partially repay outstanding loans taken out by its subsidiaries and for general corporate objectives. This indicates that the company is seeking capital to strengthen its financial position and support future growth initiatives. The article highlights ACME Solar Holdings Limited's strong financial performance, with revenue increasing by 7.71% and net profit showing significant growth in FY24 compared to FY23. The company's peers include Adani Green Energy Ltd and ReNew Energy Global PLC, providing a benchmark for comparison.
The Grey Market Premium (GMP) of Acme Solar Holdings IPO is currently nil as per investorgain.com. This indicates that shares of ACME Solar Holdings are not trading at a premium in the grey market. The absence of a GMP could be attributed to various factors, including market sentiment and investor expectations. It is crucial for investors to conduct thorough research and analysis before making any investment decisions.
The article concludes by emphasizing the importance of investors thoroughly understanding the financial statements, management team, and business prospects of ACME Solar Holdings Limited before subscribing to the IPO. It also suggests considering the company's competitive landscape and future growth potential. By carefully evaluating these factors, investors can make an informed decision about whether to participate in the ACME Solar Holdings IPO.