Premier Energies Limited is coming up with an IPO worth INR 2,830.40 crores, consisting of a fresh issue of 2.87 shares worth INR 1,291.40 crores and an offer to sell 3.42 crore shares worth INR 1,539 crores. The company aims to invest in a 4 GW Solar PV TOPCon manufacturing facility for corporate purposes.
Premier Energies IPO – Important Dates
| Premier Energies Limited IPO Date | August 27, 2024 to August 29, 2024 |
| Premier Energies Limited IPO Listing Date | September 3, 2024 |
| Premier Energies Limited IPO Price | INR 427-450 per share |
| Premier Energies Limited IPO Lot Size | 33 Shares |
| Premier Energies Limited IPO Total Issue Size | INR 2,830.40 crores |
| Premier Energies Limited IPO Basis of Allotment | August 30, 2024 |
| Premier Energies Limited IPO Initiation of Refunds | September 2, 2024 |
| Premier Energies Limited IPO Credit of Shares to Demat | September 2, 2024 |
| Premier Energies Limited IPO Issue Type | Book Built Issue IPO |
| Premier Energies Limited IPO Listing At | BSE, NSE |
Premier Energies Limited IPO – Company Profile
Premier Energies Limited, with 29 years of experience, specializes in manufacturing solar PV cells and modules, executing EPC projects, providing O&M services, and producing independent power through a 2 MW solar plant in Jharkhand.
With five owned facilities in Hyderabad, their solar manufacturing capacity totals 2 GW for cells and 4.13 GW for modules. Unit II is India’s first LEED gold-rated solar plant, certified by the USGBC in August 2022.
Steps are underway to add a 1,000 MW TOPCon solar cell line by 2025, with further expansion plans for an additional 4 GW TOPCon cell and module lines, leveraging IREDA financing and Fresh Issue proceeds.
Premier Energies Ltd IPO Fundamental Analysis
Premier Energies Limited’s financial analysis reveals a mixed performance. Revenue growth reflects strong performance, with increased profitability and EPS boosting investor confidence. However, higher debt, decreased liquidity, and slower inventory turnover warrant attention.
- Revenue Trend: The revenue increased from ₹7,428.71 million in March 2022 to ₹14,285.34 million in March 2023. The revenue for the current year’s 12-month period ending March 2024 is INR 31,437.93 million.
- Equity and Liabilities: Both equity and liability have shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has increased, indicating rising reliance on debt financing.
- Profitability: The profit after tax (PAT) has increased from ₹(144.08) million in March 2022 to ₹2,313.60 million by March 2024. The rise in profitability could be a source of confidence for investors.
- Earnings per Share (EPS): The diluted EPS has also increased from ₹(0.44) in March 2022 to ₹5.48 by March 2024, reflecting higher earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has risen from (3.65)% to 37.46%, indicating an increase in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has decreased, indicating weakening liquidity and potential challenges in meeting short-term obligations.
- Inventory Turnover Ratio: There’s a significant decrease in the Inventory Turnover Ratio, which might suggest slower sales or inefficient inventory management.
Premier Energies IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 March 2024 |
| Revenue (₹ in Million) | 7,428.71 | 14,285.34 | 31,437.93 |
| Equity (₹ in Million) | 4,039.39 | 4,242.49 | 6,598.85 |
| Expenses (₹ in Million) | 7,838.99 | 14,721.91 | 28,832.62 |
| Profit and Loss After Tax (₹ in Million) | (144.08) | (133.36) | 2,313.60 |
| RoNW (%) | (3.65) | (3.35) | 37.46 |
| NAV per Equity Share (₹) | 9.32 | 9.05 | 14.63 |
| Diluted EPS only (₹) | (0.44) | (0.38) | 5.48 |
| Total Assets (in millions) | 13,414.94 | 21,106.88 | 35,541.25 |
| Total Liabilities (in millions) | 9,375.55 | 16,864.39 | 28,942.40 |
| Debt Equity Ratio | 1.15 | 1.86 | 2.18 |
| Current Ratio (in time) | 1.29 | 1.02 | 1.16 |
| Inventory Turnover Ratio | 4.20 | 2.76 | 2.85 |
Premier Energies Limited IPO Peer Comparison
Premier Energies Limited shows strong profitability and return on equity with increasing EPS. At the same time, Websol Energy System Limited displays negative performance across profitability and return metrics, indicating significant financial challenges and a lack of growth.
| Company | Total Income (₹ in million) | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Premier Energies Limited | 31,713.11 | 1 | NA | 6.93 | 5.48 | 37.46 | 14.63 |
| Websol Energy System Limited | 268.10 | 10 | NA | (29.99) | (29.99) | NA | NA |
Premier Energies Ltd IPO Objective
The main objective of Premier Energies Limited is to invest in its subsidiary to part-finance the establishment of a 4 GW Solar PV TOPCon cell and module manufacturing facility in Hyderabad, Telangana.
- Investment in their Subsidiary, Premier Energies Global Environment Private Limited, for part financing the establishment of a 4 GW Solar PV TOPCon Cell and 4 GW Solar PV TOPCon Module manufacturing facility in Hyderabad, Telangana, India: The company intends to utilize INR 968.60 crores from the Net Proceeds to part-finance the establishment of a 4 GW Solar PV TOPCon cell and module manufacturing facility in Hyderabad, with a total estimated cost of INR 3,358.33 crores.
- General corporate purposes: The company plans to use the net proceeds for general corporate purposes, including plant and machinery maintenance, business development, employee expenses, marketing, insurance, taxes, duties, and other contingencies.
Premier Energies Limited IPO Risks And Challenges
Premier Energies Limited’s risks include losing key customers, fluctuations in solar technology demand, competition, price volatility, and the geographical concentration of its facilities, which makes operations vulnerable to local disruptions and affects business stability and profitability.
- Losing critical customers due to contract issues, financial problems, or competition could negatively impact their business, operations, and financial condition. While this hasn’t happened recently, future occurrences could affect their performance and prospects.
- The company faces risks from fluctuations in solar technology demand, competition from alternative energy sources, price volatility, regulatory changes, and market conditions, which could impact profitability and operational stability due to limited product diversification.
- With five facilities in Telangana, India, and plans for a new one, the company’s operations are concentrated geographically, making them susceptible to local disruptions such as economic conditions, natural disasters, and unforeseen events.
Premier Energies Ltd IPO – Industry & Market Potential
India, the third-largest electricity producer with 442 GW capacity, aims for 622 GW by FY2028. The shift to renewable energy, especially solar, is driven by a goal of 500 GW renewables by CY2030, enhancing the country’s clean energy future.
With a goal of net-zero emissions by CY2070, the country plans to expand renewable energy capacity to 500 GW by CY2030, including 300 GW from solar. Harnessing 748 GWp of solar potential, it has achieved 10% of this target.
Solar capacity is projected to grow from 1,419 GW in 2023 to 3,180 GW by 2027, making it the largest global power source, surpassing hydropower, natural gas, and coal. This growth is driven by strong policy support and rising investments.
Premier Energies Limited IPO – Type of Offer
Premier Energies Limited plans a fresh issue of shares, seeking INR 1,291.40 crores to invest in a 4 GW Solar PV TOPCon manufacturing facility and for corporate purposes. Additionally, the company proposes an offer for sale, intending to sell 3.42 crore existing shares.
- Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 1,291.40 crores. The company intends to utilize the proceeds from the fresh issue to invest in a 4 GW Solar PV TOPCon manufacturing facility and for corporate purposes.
- Offer for sale: Premier Energies Limited is offering to sell 3.42 crore existing shares. The following are the details of the existing shareholders who are also the promoters selling the shares:
| Name of the promoter selling shareholder | Maximum number of offered shares for sale (in millions) |
| Chiranjeev Singh Saluja | 7,200,000 |
Premier Energies IPO Offer Size
The offer size of Premier Energies Limited is INR 2,830.40 crores, consisting of a fresh issue of 2.87 shares worth INR 1,291.40 crores and an offer to sell 3.42 crore shares worth INR 1,539 crores. The company aims to invest in a 4 GW Solar PV TOPCon manufacturing facility for corporate purposes.
Premier Energies Limited IPO Allotment Structure
Premier Energies Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
How to apply for Premier Energies IPO?
To apply for the Premier Energies Limited IPO through Alice Blue, follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for Premier Energies Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Premier Energies Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How do you check Premier Energies IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Premier Energies Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Premier Energies Limited IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Premier Energies Limited IPO:
● Registrar’s Website: Visit the website of KFin Technologies Limited, the registrar of the Premier Energies Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● BSE NSE: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) National Stock Exchange (NSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Premier Energies Ltd IPO Offer Registrar
The registrar for the Premier Energies Limited IPO is KFin Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
KFin Technologies Limited
Selenium, Tower-B, Plot No. 31 and 32 Financial
District Nanakramguda, Serilingampally Hyderabad
500 032 Telangana, India
Tel: +91 40 6716 2222
E-mail: [email protected]
Website: www.kfintech.com
Premier Energies IPO – FAQs
1. What is the allotment date of the Premier Energies IPO?
The allotment date of the Premier Energies Limited IPO is August 30, 2024.
2. What is the price band of the Premier Energies IPO?
The price band of the issue is INR 427-450 per share.
3. What is the size of the Premier Energies IPO?
The offer size of Premier Energies Limited is INR 2,830.40 crores, consisting of a fresh issue of 2.87 shares worth INR 1,291.40 crores and an offer to sell 3.42 crore shares worth INR 1,539 crores. The company aims to invest in a 4 GW Solar PV TOPCon manufacturing facility for corporate purposes.
4. What is the listing date of the Premier Energies IPO?
The listing date of Premier Energies Limited’s IPO is September 3, 2024.
