Solarworld Energy Solutions IPO subscribed 123% on Day 1, retail portion booked 4.5 times; check GMP

Solarworld Energy Solutions IPO Day 1

The initial public offering of Solarworld Energy Solutions opened for public bidding today, September 23. The Rs 490-crore issue has been subscribed 123 percent so far on Tuesday.

The maiden public offering of the company received bids for over 99 lakh shares, as against the offer size of around 81 lakh shares, according to data on NSE. Retail investor portion has been subscribed 4.56 times, while Non Institutional Investors (NII) portion got booked 145 percent of the portion kept for them. Qualified Institutional Buyers (QIB) are yet to make any bid for the IPO.

Solarworld Energy Solutions IPO GMP:

Ahead of listing, the unlisted shares of Solarworld Energy Solutions were trading with more than 18.5 percent grey market premium (GMP) over the IPO price, according to data on Investorgain. This is slightly lower than the 19.37 percent GMP quoted by the site during the weekend, but higher than the 9 percent quoted last week.

According to IPO Watch, the unlisted shares of the company were trading with 18.51 percent GMP over the IPO price.

Key details about Solarworld Energy Solutions IPO:

Solarworld Energy Solutions launched its IPO to raise Rs 490 crore from the capital markets through a fresh issue of Rs 440 crore and an offer for sale (OFS) of shares worth Rs 50 crore by promoter Pioneer Facor IT Infradevelopers. The price band for the IPO has been set at Rs 333-351 per share.

Investors can bid for a minimum of 42 shares, requiring an investment of Rs 14,742 at the upper price band, and in multiples thereafter. The share allotments will likely be finalized by September 26, and the shares are scheduled to be listed on stock exchanges on September 30.

Solarworld Energy Solutions will spend Rs 420 crore of the fresh issue proceeds (including pre-IPO round funds) for establishing a 1.2 GW solar PV TopCon cell manufacturing facility in Pandhurana, Madhya Pradesh through Kartik Solarworld. The remainder amount will be used for general corporate purposes, while the offer-for-sale funds will go to the selling shareholder.

The company that seeks valuation of Rs 3,042 crore competes with listed peers like Sterling & Wilson Renewable Energy, KPI Green Energy, Waaree Renewable Technologies, and Oriana Power.

Solarworld Energy Solutions Anchor Book:

A day before the IPO opened for public bidding, the solar energy solutions provider said that it has raised Rs 220.5 crore from 14 anchor investors on September 22. VQ Fastercap Fund was the largest anchor investor, acquiring 12.79 lakh shares for Rs 44.89 crore, while Pinebridge Global Funds, Singularity AMC, and Motilal Oswal AMC each bought 7.09 lakh shares for Rs 24.89 crore.

Citigroup Global, BNP Paribas, Varanium Dynamic Trust, Nuvama Private Investment Trust, Cognizant Capital, LC Pharos, India Max Investment Fund, Capri Global, Golden Equity Fund, and Astrone Capital were other buyers in the anchor book.

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