ACME Solar Holdings mobilises Rs 1,301 crore from anchor investors, Rs 2900-crore IPO to open on Nov 6

ACME Solar Holdings IPO

ACME Solar Holdings, one of the largest producers of electricity from wind and solar energy, raised Rs 1,300.5 crore from anchor investors on November 5, a day before its IPO launch.

The Rs 2,900-crore initial share sale will open for subscription for all investors on November 6, and close on November 8, with a price band of Rs 275-289 per share. It is a combination of fresh issue of Rs 2,395 crore, and an offer-for-sale of Rs 505 crore by promoter ACME Cleantech Solutions.

"..... has finalised allocation of 4.5 crore equity shares to anchor investors at a price of Rs 289 per share," the power producer said in its filing to exchanges.

Marquee institutional investors like Abu Dhabi Investment Authority, Goldman Sachs, Morgan Stanley, Nomura, Societe Generale, HSBC Global, BNP Paribas Funds, CLSA Global, Prudential Hong Kong, Eastspring Investments, Oaks Emerging Umbrella Funds Plc, Lion Global, Great Eastern Life, Copthall Mauritius, Susquehanna Pacific, Citigroup, and Integrated Core Strategies invested in ACME shares.

Nippon Life India, HDFC Mutual Fund, ICICI Prudential MF, Mirae Asset, Tata Mutual Fund, SBI Life Insurance, ICICI Prudential Life, Bandhan MF, Manulife, Invesco India, Baroda BNP Paribas, SBI General Insurance, Abakkus Diversified Alpha Fund, Kotak Mahindra Life, and Edelweiss Life are among the other participants in the anchor book, becoming shareholders in the company now.

"Out of the total allocation of 4.5 crore equity shares to the anchor investors, 1.5 crore shares were allocated to 8 domestic mutual funds through a total of 17 schemes," ACME Solar said.

Established in 2015, the Gurugram-based renewable energy company is among the top 10 renewable energy players in India in terms of operational capacity. It has an operational project capacity of 1,340 MW, an under-construction contracted project capacity of 3,250 MW, and an under-construction awarded project capacity of 1,730 MW.

ACME Solar, which competes with listed entities like Adani Green Energy, will utilise Rs 1,795 crore out of the net fresh issue proceeds to repay the debt of its subsidiaries, and the remainder for general corporate purposes.

Its IPO shares were available at around 5-7 percent premium over the upper price band in the grey market, market observers said. ACME shares will debut on the bourses on November 13.

Nuvama Wealth Management, ICICI Securities, JM Financial, Kotak Mahindra Capital Company, and Motilal Oswal Investment Advisors are the book running lead managers to the issue.