.jpg)
Synopsis: ACME Solar Holdings' IPO, open from November 6 to November 8, 2024, offers shares at a price band of Rs275-289 per share, aiming to raise Rs1,050 crore. This IPO includes a portion for Qualified Institutional Buyers (75%), Non-Institutional Investors (15%), and Retail Investors (10%). Funds raised will be allocated toward repaying subsidiary borrowings and general corporate expenses.
ACME Solar Holdings Limited, a prominent renewable energy company, has opened its initial public offering (IPO) from November 6 to November 8, 2024, with a share price band set at Rs275-289. Through this public issue, the company aims to raise Rs1,050 crore, of which Rs505 crore will be offered as part of an Offer for Sale (OFS) by the promoter ACME Cleantech Solutions, while the remaining Rs2,395 crore will be directed towards fresh share sales. The purpose of the fresh share issuance is to repay or prepay loans availed by the company's subsidiaries and to cover other corporate expenses.
The IPO targets different investor categories, with 75% of the shares reserved for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 10% for Retail Investors. The minimum application size for retail investors is 51 shares, equating to an investment starting at Rs14,739. High Net Worth Individuals (HNIs) can participate with different investment requirements, depending on their category, with Small HNIs needing a minimum of 714 shares (Rs2,06,346) and Big HNIs starting at 3,468 shares (Rs10,02,252).
Lead Managers and Registrar
Top financial firms, including JM Financial, ICICI Securities, Nuvama Wealth Management, Motilal Oswal, and Kotak Mahindra Capital, are managing this IPO as lead managers. Kfin Technologies has been appointed as the registrar for this issue. Investors interested in applying for the IPO can do so through ASBA (Application Supported by Blocked Amount) services offered by various banks or through stock brokers with UPI capabilities.
Investment Strategy and Market Potential
ACME Solar, an established player in the renewable energy sector, primarily generates revenue through its large-scale wind and solar energy projects. With a current operational capacity of 1,340 MW and a total project capacity (including contracted and awarded projects) of 6,320 MW, ACME Solar stands poised to benefit from India’s growing focus on renewable energy. The company’s extensive project pipeline aligns with government efforts to expand renewable energy capacity to 500 GW by 2030. This capacity expansion plan, combined with a cost-effective valuation compared to peers, has garnered interest from retail and institutional investors alike.
Investors have the option to subscribe to this IPO for long-term gains, as several analysts project growth for the company in the renewable energy sector. By capitalizing on favorable industry policies and expanding its portfolio, ACME Solar aims to strengthen its competitive position and capture a significant market share in renewable energy.
Disclaimer: This article provides general information and should not be seen as financial advice. Please consult a financial advisor before investing in any IPO.
