Premier Energies listing bonanza: IPO investors’ money more than doubles; share price beats GMP estimate

A day before the issue opened on August 26, the company garnered Rs 846.12 crore through its anchor book.

Shares of Premier Energies were off to a roaring start on its stock market debut on September 3 after listing at Rs 991, a massive premium of 120 percent over the IPO issue price of Rs 450 per share.

The listing gains are above the grey market estimates where shares were trading at a premium of 108 percent. The grey market is an unofficial platform for IPO share trading before the official listing.

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The Rs 2,830-crore public offer -- a mix of a fresh issue and an offer-for-sale, was keenly watched by investors after the IPO was subscribed 74.14 times over three days. Qualified institutional buyers led the subscription, taking up 216.67 times their allotted portion. Retail investors subscribed 7.33 times their quota, while employees subscribed 10.84 times their reserved portion. Non-institutional investors subscribed 49.81 times their reserved portion.

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Founded in April 1995, Premier Energies specializes in solar solutions, manufacturing solar cells, monofacial and bifacial modules, and providing EPC and O&M services. The company runs five production units in Hyderabad, Telangana.

Funds raised from the fresh issue, after deducting expenses, will be invested in Premier Energies Global Environment Private Limited, a subsidiary, to develop a 4 GW Solar PV TOPCon Cell and Module plant in Hyderabad, along with meeting general corporate needs.

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A day before the issue opened on August 26, the company garnered Rs 846.12 crore through its anchor book. Global marquee investors Nomura Funds, Blackrock Institutional Trust Company, PGGM World Equity, Government Pension Fund Global, Abu Dhabi Investment Authority, Neuberger Berman Investment Funds, Morgan Stanley, BNP Paribas, Pioneer Investment Fund, Eastspring Investments, Carmignac Portfolio, and Allianz Global Investors Fund participated in the anchor book.

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