Premier Energies files draft papers for IPO with fresh issue component of Rs 1,500 crore

Premier Energies IPO

Premier Energies, one of the largest solar cell and solar module manufacturers, has filed preliminary papers with the capital markets regulator SEBI to raise funds via an initial public offering.

The IPO consists of a fresh issuance of equity shares worth Rs 1,500 crore by the company, and an offer-for-sale (OFS) of 2.82 crore equity shares by the existing shareholders.

Investors South Asia Growth Fund II Holdings LLC, and South Asia EBT Trust, and promoter Chiranjeev Singh Saluja are the selling shareholders in the OFS.

At the time of filing draft papers, promoters hold 72.23 percent stake on a fully diluted basis, and 26.12 percent shares are held by public shareholders, including South Asia Growth Fund II Holdings LLC, and South Asia EBT Trust. Further, employees have a 1.65 percent shareholding in the company.

The Hyderabad-based company may also consider mobilising Rs 300 crore in a pre-IPO placement before filing the red herring prospectus with the Registrar of Companies.

Also Read: Post Ola Electric, now Ola Cabs meets investment banks, weighs IPO

Premier Energies, which claimed to be the second largest integrated solar cell and solar module manufacturer with an annual installed capacity of 2 GW and 3.36 GW, respectively, will spend Rs 1,168.74 crore out of the net fresh issue proceeds for the establishment of a 4 GW solar PV TOPCon cell and 4 GW solar PV TOPCon module manufacturing facility in Hyderabad by the subsidiary, Premier Energies Global Environment (PEGEPL). The remaining fresh issue money will be used for general corporate purposes.

On the financial front, the company, which also focuses on the execution of EPC projects, independent power production, and O&M services with respect to EPC projects, has posted a consolidated loss of Rs 13.3 crore for the year ended March FY23 against a loss of Rs 14.4 crore in previous fiscal, but revenue from operations jumped by 92.3 percent to Rs 1,428.5 crore during the same period.

However, the firm turned into black for the nine-month period ended December FY24, with a profit of Rs 127.4 crore on revenue of Rs 2,017.2 crore.

Premier Energies with five manufacturing facilities in Hyderabad provides business offerings to several customers including NTPC, Tata Power, Panasonic Life Solutions, Shakti Pumps, First Energy 6, Bluepine Energies, Luminous Power Technologies, Hartek Solar, and Green Infra Wind Energy.

Also Read: Sanathan Textiles refiles draft papers to raise Rs 800 crore via IPO

The company had an order book of Rs 5,362 crore as of March 15, 2024, of which Rs 1,197.5 crore from the non-DCR solar modules segment, Rs 3,212.9 crore from DCR solar modules, Rs 801.5 crore in the solar cells division, and Rs 150 crore in the EPC projects.

Kotak Mahindra Capital Company, JP Morgan India, and ICICI Securities are the book-running lead managers to the issue.