ACME Solar Holdings Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹289
Per ShareLot Size
51 Shares
Minimum Investment
₹14,739
Issue Size
₹2,900 Cr
Face Value
₹2
Per ShareIPO Type
Book Building
Retail Quota
10%
QIB Quota
75%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
ACME Solar Holdings Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
100%
Promoter Holding (Post-Issue)
83.41%
Issue Type
Book Building
ISIN
INE622W01025
About the Company
ACME Solar Holdings Limited is a renewable energy company in India with a portfolio of solar, wind, hybrid and firm and dispatchable renewable energy ("FDRE") projects. The Company develops, builds, owns, operates and maintains utility scale renewable energy projects (through its in-house engineering, procurement and construction ("EPC") division and operation and maintenance team), and generate revenue through the sale of electricity to various off-takers including central and state government-backed entities. As of the date of this Red Herring Prospectus, it has an aggregate operational capacity of 1,340 MW (1,826 MWp); under construction contracted capacity of 3,250 MW and under construction awarded capacity of 1,730 MW.
Industry Overview
Renewable sources are a clean source of energy, preventing the release of pollutants into the air. While there are multiple renewable sources that can be utilised, solar, wind, small hydro, biomass, and bagasse remain key sources. Renewable energy installations have increased to approximately 200 GW as of August 2024. As of March-2024, installed grid connected renewable energy generation capacity (including large hydro) in India constituted approximately 44% of the total installed generation base in India.
Company History
ACME Solar Holdings Limited was originally incorporated as "ACME Solar Holdings Private Limited" at Haryana, India, as a private limited company under the Companies Act, 2013, pursuant to a certificate of incorporation dated June 3, 2015, issued by the Registrar of Companies, Delhi and Haryana at New Delhi. Upon the conversion of the Company into a public limited company, pursuant to a board resolution dated May 1, 2017 and a shareholders' resolution dated May 2, 2017, the name of the Company was changed to "ACME Solar Holdings Limited", and a fresh certificate of incorporation dated May 12, 2017 was issued by the RoC. Pursuant to a board resolution dated January 21, 2020 and a shareholders' resolution dated January 24, 2020, the Company was converted into a private limited company and consequently, the name of the Company was changed to "ACME Solar Holdings Private Limited", and a fresh certificate of incorporated dated July 1, 2020, was issued by the Registrar of Companies, New Delhi. Subsequently, pursuant to a board resolution dated May 27, 2024, and a shareholders' resolution dated June 7, 2024, the Company was converted into a public limited company and consequently, the name of the Company was changed to "ACME Solar Holdings Limited" and a fresh certificate of incorporation dated June 22, 2024 was issued by the Registrar of Companies, Delhi and Haryana at New Delhi.
Products & Services
- ACME Solar Holdings Limited is a renewable energy company in India with a portfolio of solar, wind, hybrid and firm and dispatchable renewable energy ("FDRE") projects.
Growth Strategy
- Expand and diversify its portfolio to continue to maintain its leadership position.
- Continue to invest in and improve its integrated business model.
- Focus on technology upgrades to improve efficiency and longevity of its projects.
- Continue to diversify its funding sources, optimise its cost of capital and identify partners/investors for future growth.
Customer Base
Wholesaler and Retailer
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a consolidated basis, as reported for FY23 to FY25.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offering of 100,381,678# equity shares of face value of Rs. 2 each ("Equity Shares") of Acme Solar Holdings Limited (the "Company" or the "Issuer") for cash at a price of Rs. 289.00# per equity share including a securities premium of Rs. 287.00 per equity share (the "Offer Price") aggregating to Rs. 2900.00# crores (the "Offer"). The offer comprises a fresh issue of 82,907,630# equity shares by the company aggregating to Rs. 2395.00 crores (the "Fresh Issue") and an offer for sale of 17,474,048 equity shares (the "Offered Shares") aggregating to Rs. 505.00 crores (the "Offer for Sale") by Acme Cleantech Solutions Private Limited (referred to as the "Promoter Selling Shareholder"). The offer includes a reservation of 381,679# equity shares, aggregating to Rs. 10.00# crores (constituting to 0.06% of the post offer paid-up equity share capital of the company), for subscription by eligible employees (the "Employee Reservation Portion"). The offer less the employee reservation portion is hereinafter referred to as the "Net Offer". The offer and the net offer shall constitute 16.59% and 16.53%, respectively, of the post-offer paid-up equity share capital of the company. The company, in consultation with the book running lead managers ("brlms"), offered a discount of Rs. 27.00 on the offer price to eligible employees bidding in the employee reservation portion ("Employee Discount"). *Subject to finalization of basis of allotment. #A discount of Rs. 27.00 per equity share was offered to eligible employees bidding in the employee reservation portion.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- Large renewable energy player well positioned to capitalize on strong industry tailwinds in its IPP business.
- End-to-end value chain capabilities and an integrated approach to developing renewable power projects by its in-house project development, EPC and O&M teams.
- Expansive portfolio diversified across different renewable energy technologies.
- Long-term stable cash flows based on contracts with central and state government entities.
- Access to diversified sources of funding.
- The company may not be able to grow its portfolio of renewable energy power projects as the company relies on highly competitive renewable energy power project auctions. Further, its future growth is significantly dependent on successfully executing its Under Construction Awarded Projects and Under Construction Contracted Projects. In the event, the company is not successful in executing its future projects, its business and results of operations may be adversely impacted.
- The company is dependent on its Power Purchase Agreements ("PPA") to sell power and generate its revenue from operations. Further, the terms of its PPAs may expose it to certain risks that may affect its future results of operations and cash flows.
- Its business is dependent on the company's top 10 off-takers, which contributed 95.42%, 89.42%, 89.97%, 87.48% and 81.11% of its revenue from operations during the three months ended June 30, 2024 and June 30, 2023 and for Fiscal 2024, 2023 and 2022, respectively. The loss of any of these off-takers could have an adverse effect on its business, financial condition, results of operations and cash flows.
- The company procured 84.48%, 77.15%, 79.37%, 69.84% and 69.95% of its total purchases during the three months ended June 30, 2024 and June 30, 2023 and in Fiscal 2024, 2023 and 2022, respectively from ACME Cleantech, its top supplier. Further, the company does not have definitive supply agreements with its vendors for the supply of components and any interruptions in supply could adversely affect its business, financial condition, results of operations and cash flows.
- The company is dependent on its relationship with one of its Promoters, ACME Cleantech and any adverse developments in such relationship may adversely affect its business and reputation.