Australian Premium Solar SME IPO: Check price band, GMP, financials, risks and listing date

The Rs 28-crore initial public offering (IPO) of Australian Premium Solar (India) opened for subscription on January 11. The IPO, purely a fresh issue, will close on January 15.

Incorporated in 2013, Australian Premium Solar manufactures monocrystalline and polycrystalline solar panels and provides engineering, procurement and construction (EPC) services for residential, agricultural, and commercial applications.

Issue Size

The issue is entirely a fresh issue of 52 lakh shares.

Price Band

The price band for the offer has been fixed at Rs 51-Rs 54 a share.

Lot size

Investors can bid for a minimum of 2,000 equity shares and in multiples thereof.

Financial Performance
For the year ended March 2023, the company reported a revenue of Rs 94.5 crore, down 3.6 percent from the year-ago period. However, net profit was up 22 percent to Rs 3.3 crore.

Objectives of the issue

The company will utilise funds for capital expenditure, to meet working capital requirements, general corporate purpose and public issue expenses.

Promoters of the company

The company promoters are Chimanbhai Ranchhodbhai Patel, Savitaben Chimanbhai Patel and Nikunjkumar Chimanlal Patel.

Lead Managers

Beeline Capital Advisors Pvt Ltd is the book-running lead manager of the issue, while Link Intime India Private Ltd is the registrar. The market maker for the Australian Premium Solar (India) IPO is Spread X Securities.

Key Risks

i.) The company has only one manufacturing facility and continued operations are critical to its business. Any disruption at the facility may hurt the financials and operational condition of Australian Premium Solar (India).

ii.) The company provides EPC service for solar rooftops and solar pumps and receives subsidies from state and central governments for the same. A reduction or discontinuation of such subsidy will result in a reduction in the number of potential consumers.

iii.) It conducts business activities on a purchase order basis and therefore, has not entered into long-term agreements with customers.

Grey Market Premium

The grey market premium (GMP) surged to Rs 30, or 55.5 percent, over the issue price of Rs 54 on January 10. The GMP implies a listing price of Rs 84.

The grey market is an unofficial ecosystem where shares start trading much before the allotment and until the listing day. Investors typically track the grey market premium (GMP), which can fluctuate wildly, to get an indication of the listing price.

Listing Date

Australian Premium Solar (India) will likely list on NSE SME on January 18.