Summarize

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Premier Energies, a solar solutions specialist, saw its shares list with a 120% premium over its IPO price, following an oversubscription of 74.14 times.
The company plans to invest the IPO proceeds in its subsidiary, Premier Energies Global Environment Private Limited, to develop a 4 GW Solar PV TOPCon Cell and Module plant in Hyderabad.
Prior to the IPO, Premier Energies secured ₹846 crore from global investors, highlighting its strong market position in the renewable energy sector.

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The company's shares were listed at ₹991 each

Premier Energies shares list with 120% premium over IPO price

By Mudit Dube

Sep 03, 2024

11:01 am

What's the story

Premier Energies, a leading solar solutions provider, made an impressive debut on the stock market today. The company's shares were listed at ₹991 each, marking a substantial premium of 120% over the initial public offering (IPO) issue price of ₹450 per share. This significant gain surpassed gray market predictions where shares were trading at a premium of 108%.

Investor interest

Premier Energies's IPO oversubscribed, attracts institutional buyers

The ₹2,830-crore public offer from Premier Energies was met with high investor interest, with the IPO being oversubscribed 74.14 times over three days. Qualified institutional buyers led the subscription frenzy by taking up 216.67 times their allotted portion. Retail investors and employees also showed strong interest by subscribing 7.33 times and 10.84 times their respective quotas, while non-institutional investors subscribed nearly 50 times their reserved portion.

Investment plans

Premier Energies to invest IPO proceeds in subsidiary

Premier Energies, established in April 1995, specializes in solar solutions including the manufacture of solar cells and modules. The company operates five production facilities in Hyderabad, Telangana. The funds raised from the fresh issue will be invested in Premier Energies Global Environment Private Limited, a subsidiary of the company. This investment aims to develop a 4 GW Solar PV TOPCon Cell and Module plant in Hyderabad and meet general corporate needs.

Anchor investment

Premier Energies secured ₹846 crore through anchor book

A day before the issue opened on August 26, Premier Energies secured ₹846.12 crore through its anchor book. Global investors including Nomura Funds, Blackrock Institutional Trust Company, PGGM World Equity, Government Pension Fund Global, Abu Dhabi Investment Authority, Neuberger Berman Investment Funds, Morgan Stanley and others participated in this round of investment. This significant financial backing underscores the strong market position and potential growth of Premier Energies in the renewable energy sector.