Subscribe for ACME Solar Holdings Ltd IPO; KR Choksey

KR Choksey, has come out with its report on ACME Solar Holdings Ltd. The research firm has recommended to “ Subscribe” the ipo in its research report as on November 05 2024.

November 06, 2024 / 10:28 IST

IPO

KR Choksey, ACME Solar Holdings Ltd

ACME Solar is a prominent renewable energy company in India, with a diverse portfolio spanning solar, wind, hybrid, and firm and dispatchable renewable energy (FDRE) projects. As one of India's largest independent power producers (IPPs) in renewable energy, ACME Solar ranks among the top 10 in operational capacity as of June 30, 2024. Originally focused on solar projects, the company has expanded over the years to become an integrated renewable energy provider. Acme's business model centers on Power Purchase Agreements (PPAs) with state-run distribution companies (DISCOMs) and institutional buyers, ensuring long-term, stable cash flows. It has 1,340 MW of operational solar capacity and 3,250 MW under construction contracted, focusing on technological innovation and efficient, cost-effective clean energy.

Valuation and Outlook

At the EV/EBITDA valuation of 23x which is cheaper compared to its peer the company offers attractive growth potential, supported by its leadership in the renewable energy sector. Hence, we assign a “SUBSCRIBE” rating.

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