Renewable energy firm ACME Solar’s IPO garners robust retail backing
ACME Solar Holdings Limited’s initial public offering (IPO), through a book-building process, features a fresh issue of shares worth ₹2,395 crore and an offer-for-sale (OFS) of ₹505 crore by ACME Cleantech Solutions. The IPO opened on November 6 and will close on November 8, targeting a total of ₹2,900 crore.
Day 2 Subscription Highlights
As of November 7, the IPO received 70% subscription, with bids for 4.05 crore shares against the available 5.82 crore. The retail investor segment oversubscribed at 2.04 times, while non-institutional investors (NIIs) subscribed to 56% and qualified institutional buyers (QIBs) to 31% of their allotted portions.
Anchor Investment and Grey Market Premium
On November 5, ACME Solar raised ₹1,300 crore from anchor investors, supporting the IPO’s demand. However, as of November 7, the grey market premium (GMP) remained nil, suggesting limited secondary market demand above the issue price. According to one of the research platform, the IPO may list at the upper price band of ₹289.
Read Complete Details: ACME Solar IPO: Must Know Details
Use of Funds
Proceeds from the fresh issuance are allocated towards repaying debt (₹1,795 crore) and other corporate purposes, strengthening ACME Solar’s financial structure.
Company Overview and Revenue Model
ACME Solar, a key player in India’s renewable energy market, develops, builds, and operates large-scale projects. It generates revenue by supplying electricity to central and state government-backed entities through its engineering, procurement, and construction (EPC) and operations and maintenance (O&M) divisions.
IPO Management
Nuvama Wealth Management, ICICI Securities, JM Financial, Kotak Mahindra Capital, and Motilal Oswal Investment Advisors are the book-running lead managers for the IPO, with KFin Technologies as the registrar.
Disclaimer:
This article is intended solely for informational purposes and should not be construed as investment advice or an endorsement of the ACME Solar Holdings IPO. We do not suggest or encourage investment in this IPO or any securities mentioned. Investors should exercise discretion and conduct their own research and analysis before making any investment decisions. Past performance is not indicative of future results, and investment in any IPO carries inherent risks. Always consult a financial advisor or professional before proceeding with any investment.