ACME Solar Holdings, a leading renewable energy company, is set to launch its Initial Public Offering (IPO) with a mix of fresh issue and offer of sale. However, according to a brokerage firm, the company's reliance on government-owned transmission grids and infrastructure, and its growth depending on winning competitive bids pose significant risks. The company's financial performance has been lacklustre in recent years, with low margins and reported losses. Interested investors can subscribe to the IPO from November 6 to 8 for a price band of Rs 275 to Rs 289 per equity share.
ACME Solar Holdings, a Gurugram-based renewable energy company, has announced the pricing for its initial public offering (IPO) of Rs 2,900 crore, with a price band of Rs 275 to Rs 289 per share. The company plans to use the proceeds from the fresh issuance to pay off debt and for general corporate purposes. With a diversified portfolio and a revenue stream from selling electricity to government-backed entities, ACME Solar has seen a turnaround from loss-making to a profit of Rs 698.23 crore in FY24.
Indian solar panel manufacturer Premier Energies recently made headlines for its successful IPO, which raised an impressive Rs 846 crore from anchor investors. The company has also won a major order for 350 MW solar modules and received approval from Sebi for their IPO. However, the solar industry as a whole may face challenges due to interest rate cuts. Meanwhile, Reliance is set to commission their first solar giga-factory this year, while ACME Solar Holdings has filed for a Rs 3,000 crore IPO and NTPC has commissioned a 160 MW solar plant in Jaisalmer. KPI Green Energy has also secured letters of intent for a significant green energy project.