Premier Energies Ltd IPO Review: GMP, Lot Size, Key Dates, and Company Details – Equitypandit
Introduction to Premier Energies Ltd IPO
Premier Energies was incorporated in April 1995. The company will issue a book of Rs 2,830.40 crore, out of which a fresh issue of 2.87 crore shares and an offer-for-sale of 3.42 crore shares will be issued. The Initial Public Offering will be opened on 27 August 2024 and closed on 29 August 2024.
This IPO subscription is an amalgamation of a fresh issue of Rs 1,291.40 crore, amounting to 2.87 crore shares, and an offer-for-sale of Rs 1,539.00 crore, amounting to 3.42 crore shares. The firm will be listed on both the BSE and NSE.
The allotment for the same will occur on 30 August 2024. The price range is fixed at Rs 427 to Rs 450 per share. A minimum of 33 shares constitutes the minimum lot size for a bid. Retail investors need to invest a minimum of Rs 14,850. Small NII investors need a minimum investment of Rs 207,900 for 462 shares, which is 14 lots. Large NII investors need a minimum investment of Rs 1,009,800 for 2,244 shares, which is 68 lots.
Kfin Technologies Ltd is the IPO’s registrar. Premier Energies Ltd IPO is being led by Kotak Mahindra Capital Company Ltd, J.P. Morgan India Pvt Ltd and ICICI Securities Ltd as book-running lead managers.
Premier Energies Ltd IPO Company Details
Premier Energies deals with the manufacture of integrated solar cells and panels. The products include solar cells, solar modules, and one-side or two-side capturing sunlight panels. Other services include set-up and maintenance for solar energy systems.
It has five manufacturing units, all of which are based in Hyderabad, Telangana, India.
The company’s clients include NTPC, TATA Power Solar, Panasonic, and other companies.
As of 31st July 2024, the company has a robust order book worth Rs 59,265.65 million. This includes orders for non-DCR solar modules, DCR solar modules, solar cells, and EPC projects.
Premier Energies exports its products worldwide, reaching consumers in the USA, Hong Kong, South Africa, Bangladesh, and many other nations in Europe, Asia, and Africa. By June 2024, the firm had 1,447 regular workers and 3,278 contract workers on the rolls and proved itself as one of the most important players in the renewable energy sector.
Premier Energies Ltd IPO Details:
| Premier Energies Ltd IPO Opening Date and Closing Date | 27th August to 29th August |
| Face Value | Rs 1 per share |
| Price Band | Rs 427 to Rs 450 per share |
| Lot Size | 33 Shares |
| Total Issue Size | 62,897,777 shares (aggregating up to Rs 2,830.40 Cr) |
| Fresh Issue | 28,697,777 shares (aggregating up to Rs 1,291.40 Cr) |
| Offer for Sale | 34,200,000 shares (aggregating up to Rs 1,539.00 Cr) |
| Issue Type | Book-Built Issue IPO |
| Listing At | NSE, BSE |
| Shareholding Pre-Issue | 422,065,168 |
| Shareholding Post Issue | 450,762,945 |
| Employee Discount | Rs 22 per share |
Premier Energies Ltd IPO tentative schedules:
| IPO Open Date | Tuesday, 27th August, 2024 |
| IPO Close Date | Thursday, 29th August, 2024 |
| Basis of Allotment | Friday, 30th August, 2024 |
| Refund Initiation | Monday, 2nd September, 2024 |
| Credit of Shares in Demat | Monday, 2nd September, 2024 |
| Listing Date | Tuesday, 3rd September, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on 29th August, 2024 |
Applications by different investors, Premier Energies Ltd lot size, shares, and their value:
| Application | Lots | Shares | Amounts |
| Retail (Min) | 1 | 33 | Rs 14,850 |
| Retail (Max) | 13 | 429 | Rs 193,050 |
| S-HNI (Min) | 14 | 462 | Rs 207,900 |
| S-HNI (Max) | 67 | 2,211 | Rs 994,950 |
| B-HNI (Min) | 68 | 2,244 | Rs 1,009,800 |
Investor categories and Premier Energies Ltd shares offered:
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50.00% of the offer |
| Retail Shares Offered | Not less than 35.00% of the Offer |
| NII (HNI) Shares Offered | Not less than 15.00% of the Offer |
Premier Energies Ltd Financials:
| Periods Ended | 30th Jun, 2024 | 31st Mar, 2023 | 31st Mar, 2022 |
| Assets | Rs 3,735.5 Cr. | Rs 2,110.69 Cr. | Rs 1,341.49 Cr. |
| Revenue | Rs 1,668.79 Cr. | Rs 1,463.21 Cr. | Rs 3,735.5 Cr. |
| Profit After Tax | Rs 198.16 Cr. | Rs -13.34 Cr. | Rs -14.41 Cr. |
| Net Worth | Rs 26.96 Cr. | Rs -0.24 Cr. | Rs -0.51 Cr. |
| Reserves and Supplies | Rs 255.73 Cr. | Rs 224.4 Cr. | Rs 209.2 Cr. |
| Total Borrowing | Rs 1,200.16 Cr. | Rs 763.54 Cr. | Rs 453.3 Cr. |
Premier Energies Key Performance Indicators (KPI) and their values:
The market capitalisation of Premier Energies Ltd IPO is Rs 20284.33 crore.
| KPI | Values |
| Return on Equity (ROE) | 43.73% |
| Return on Capital Employed (ROCE) | 25.65% |
| Debt to Equity Ratio (D/E) | 1.86 |
| Return on Net Worth (RoNW) | 37.46% |
| Price to Book Value (P/BV) | 30.76 |
| PAT Margin (%) | 7.3 |
Premier Energies Ltd IPO GMP
The most recent GMP of the IPO is Rs 280, as of 23rd August 2024, 12:30 PM. The IPO has a price band of Rs 450.00. The estimated listing price for Premier Energies Ltd is Rs 730, reflecting a potential gain of 62.22% per share.
For the IPO, the Retail Subject to Sauda is Rs 7,000, and the Small HNI Subject to Sauda is Rs 98,000. The GMP ranges from a low of Rs 190 to a high of Rs 280.
Objectives of the Premier Energies Ltd IPO
The company plans to use the net proceeds from the fresh issue to fund two main objectives:
- It would invest in its subsidiary, Premier Energies Global Environment Private Limited, to help establish a 4 GW solar PV TOPCon cell and module manufacturing facility in Hyderabad, Telangana, India.
Some major risks associated with the Premier Energies Ltd IPO are:
- 67.03% of revenues are dependent on the top 10 customers of the company.
- It depends to a great extent on solar cells and modules.
- All the manufacturing units are concentrated in Hyderabad, Telangana.
- The company incurred losses of Rs 144.08 million in fiscal 2022.
- Its cash flow was adverse at Rs 410.48 million in June 2024.
- It faces stiff competition from manufacturers based in India and Southeast Asia.
- The company does not have its suppliers tied through long-term agreements, so a delay in delivery or shortage in materials could have a possible negative impact on operations.
Frequently Asked Questions (FAQs)
What could be the price band for the Premier Energies IPO?
The issue price band is between Rs 427 and Rs 450 for each share.
What could be a quota for the Retail Investors in the IPO application of Premier Energies Ltd?
The issue of shares to retail investors shall be a minimum of 35% of the share issue.
Where can we track Premier Energies’ stock performance after it’s listed?
Unicorn Signals provides tracking of a stock’s performance two to three days later, once it’s listed on the stock exchange.
How do I subscribe to Premier Energies’ IPO?
Subscriptions can be made from the IPO opening to the closing date via your demat account or by contacting your bank or financial institution.
What is the closing time for the subscription to Premier Energies’ IPO?
The deadline for the application is 5 PM on 29th August, 2024, yet most brokers will not be accepting applications past 1-3 PM.
Where can I get detailed information on the Premier Energies Ltd IPO?
Detailed information on the same can be found in the following documents filed with SEBI by the company:
