Premier Energies block deal: 5.5% equity exchanged for Rs 2,629 crore, South Asia Growth Fund II Holdings likely seller

Promoters hold a 64.3 percent stake in Premier Energies as of March 2025.

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Shares of solar energy player Premier Energies Ltd rose in early trade on Monday, June 10, as the firm saw a large block deal involving shares worth around Rs 2,629 crore.

Premier Energies saw a large trade with 2.5 crore shares, representing 5.54 percent of its equity, changing hands in a block deal worth Rs 2,629 crore. The shares were exchanged at Rs 1,052 apiece.

According to sources to CNBC-TV18, South Asia Growth Fund II Holdings was potentially going to offload 2.5 crore equity shares, which represents 5.5 percent of the total equity in the firm, through the block deal route. The floor price of this deal was set at Rs 1,051.5 crore apiece, which represents a one percent discount from the previous session's closing price.

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Following the block deal, the South Asia Growth Fund will have a 150-day lock-in period, wherein the fun cannot sell anymore shares in Premier Energies. According to the March shareholding pattern, the fund has an 11.1 percent stake in the firm.

The firm's equity structure is dominated by promoters, who collective own around 64.3 percent in the firm, as of March 2025. Further, foreign institutional investors (FIIs) and domestic institutional investors (DIIs) own 3.0 percent and 8.7 percent stakes, respectively. Public shareholders hold around 23.4 percent in the firm.

Kotak Institutional Equities has a 'sell' call on Premier Energies, as a result of the stock's high valuations. Despite forecasting a strong Compounded Annual Growth Rate (CAGR) of 44 percent for Premier Energies between FY24 and FY30, Kotak cited the stock's high valuations as a concern, driving its bearish stance.

The broking firm also highlighted the potential of India’s solar sector, projecting an 18 percent CAGR in utility-scale solar capacity additions through FY30. India’s solar sector is set to grow significantly over the next decade as the country targets 500 GW of renewable energy capacity by 2030. Solar capacity is projected to increase from 82GW in FY24 to 214GW by FY30, driven by utility-scale projects, rooftop installations, solar pumps, and captive industrial use.

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