Premier Energies IPO subscribed 2.1 times on day 1; NIIs lead so far

The trading in its equity shares will commence on the BSE and NSE, effective September 3.

Premier Energies' Rs 2,830-crore initial public offering saw a robust subscription on the first day after it was subscribed 2.1 times on August 27. Investors bought 9.36 crore equity shares against the offer size of 4.46 crore equity shares.

The company intends to raise Rs 1,291.4 crore via fresh issue, and another Rs 1,539 crore through offer-for-sale (OFS), at the upper end of the price band at Rs 427-450 per share.

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Non-institutional investors were at the forefront, buying 5.38 times the portion set aside for them. Retail investors were at the second spot, picking 1.81 times the allotted quota, followed by employees who bought 3.16 times their reserved portion. The part set aside for qualified institutional buyers (QIBs) was subscribed 4 percent.

Founded in April 1995, Premier Energies specializes in the production of integrated solar cells and panels. Its product lineup features solar cells, monofacial and bifacial modules, as well as EPC and O&M solutions. The company operates five manufacturing facilities, all located in Hyderabad, Telangana, India.

The company plans to use the net proceeds, defined as the gross proceeds from the Fresh Issue minus the related expenses, for two main purposes: investing in its subsidiary, Premier Energies Global Environment Private Limited, to partially finance the establishment of a 4 GW Solar PV TOPCon Cell and Module manufacturing facility in Hyderabad, Telangana, India, and for general corporate purposes.

The trading in its equity shares will commence on the BSE and NSE, effective September 3.

Ahead of the listing, the Premier Energies IPO shares were available at around 84 percent premium over the upper price band, in the grey market. The grey market is an unofficial platform for trading in IPO shares till the listing.

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