ACME Solar Holdings, one of the largest solar energy companies, will trade publicly on the stock markets on November 6, 2024, between Rs. 275 to Rs. 289, equity and Rs. 2 per share, at face value. Acme Solar Holdings specializes in large-scale projects that harness solar and wind energy resources. The company produces and sells electricity, which forms a core part of its income. With central and state government backing, ACME Solar aims to go all in and attract investors with its offering. Read on to find out more about the IPO.
Solar Holdings IPO: Key Details
The issue comes with an initial 51 equity shares and will expand to multiples of those 51 equity shares. Subscriptions opened on Wednesday, November 6, 2024, and closed on Friday, November 8. The IPO allotment is likely by Monday, November 11, and BSE and NSE listings will be on Wednesday, November 13. The anchor round may be on Tuesday, November 5.
The price band for this IPO listing is between Rs. 275 and Rs. 289 per share, with a face value of Rs. 2 per equity. Fresh issues are worth Rs. 2,395 crores, while equity shares come with an offer for sale (OFS) price of Rs. 505 crores. That means the promoter, ACME Cleantech Solutions Pvt. Ltd is looking to raise Rs. 2,900 crores with this IPO.
Financial Performance
ACME Solar adopts an integrated approach to project development to cut costs and retain margins, which it otherwise would have had to shell out. The solar energy company generates much of its revenue from notable players like NTPC, NHPC, and Solar Energy Corporation of India and has managed to maintain more than 99 percent of its grids and plants since FY 2022. The average CUF has seen an annual increase from 21.9 percent in FY22 to 27 percent in the first quarter of FY25, underscoring the company’s outstanding operational expertise and capacity.
The management has been conservative, though, and the company only managed to secure projects worth 825 MW between FY22 and FY23. However, it has increased since, with tariffs improving in Q1 FY25. PAT has been weak since FY22, and EBITDA is mostly stagnant, although operating cash flow coming into EBITDA has stayed strong, with a more than 100 percent increase. EBITDA margins are generally high, especially considering that the company has capitalized on the expenses of the project.
Steps to Check IPO Status
Investors can check their IPO statuses by visiting the BSE or NSE websites.
- Visit the BSE IPO Allotment page.
- Click ‘Issue Type’ and select ‘Equity.’
- Select Acme Solar Holdings Limited from the dropdown, ‘Issue Name.’
- Complete the Captcha to verify that you are human, and click ‘Search’ to check your allotment status.
Subscribers can also check the allotment status of the IPO by logging into the NSE website and keying in relevant details such as PAN number or application number.
Investor Takeaway
ACME Solar is a leading producer of solar-energy-based electricity. With an aggregate share price of about Rs. 2,395 crores and an Offer of Sale of shares worth Rs. 505 crores, the IPO looks promising, especially since the company focuses on large-scale renewable energy projects and has a total operating capacity of 1,320 MW as of March 2024.
ACME Solar Holdings
IPO
