Solar panel maker Premier Energies on Tuesday made a blockbuster stock market debut, posting a listing gain of 120.22 per cent to list at Rs 991 per share on the BSE as against the IPO issue price of Rs 450 apiece. On the NSE, the IPO posted a 120 per cent gain to list at Rs 990 apiece.
However, later, the stock saw profit booking and fell Rs 120 to Rs 870.75 apiece on the BSE.
“Premier Energies, the leading solar cell and module manufacturer, made a blockbuster debut on the stock market, listing at Rs. 990 per share, a staggering 120% gain over its issue price of Rs. 450. This exceptional performance aligns with the pre-listing hype, fueled by the company’s strong fundamentals, robust investor response, and favourable market conditions,” Shivani Nyati, Head of Wealth, Swastika Investmart Ltd.
The company’s diversified customer base, robust order book, and recent surge in profitability have contributed to this positive sentiment, she said.
While the solar manufacturing industry remains competitive, Premier Energies’ strategic positioning and focus on innovation differentiate it from its peers. The company’s ability to navigate industry headwinds, as demonstrated by its strong financial performance in FY24, further enhances its appeal, Nyati added.
“Overall, Premier Energies’ successful listing and impressive performance solidify its position as a promising player in the renewable energy sector. Investors who participated in the IPO may book profit, but those who still want to hold it may keep a stop loss at 890,” she said.
Prashanth Tapse, senior VP (research), Mehta Equities Ltd, said, “As expected with strong subscription response, listing was in line with our assumption considering reasonable valuations before listing, well-positioned to capitalize the industry demand in renewable energy and an opportunity to invest in India’s second-largest integrated solar cell and module manufacturer.”
Post listing considering 120% listing gain on valuation front has moved from reasonability valued to stretched valuations which would be reason for profit booking attempts at high levels, he added.
“We continue to recommend conservative investors to choose profit booking, while risk takers can continue holding for long term as the sector outlook remains optimistic. Given the company’s strategic alignment with government initiatives promoting domestic solar production, alongside its diversified customer base and recognition as a top performer in module reliability, suggests a promising future. In the long run we believe the market could give a premium multiple towards its leadership position,” Tapse added.
The initial public offering (IPO) of Premier Energies Ltd was opened between August 27 and August 29, 2024. The price band of the IPO was fixed at Rs 427-450 per share. The 2,830.4-crore IPO received a 75 times subscription, garnering bids for over 3,30,51,69,813 shares as against 4,41,06,533 shares on offer.
According to the latest data, the retail quota received a 7.35 times subscription, while the non-institutional investors category also got a 50.90 times subscription. The QIB category received a 212.42 times subscription on the first day of bidding.
The IPO was a fresh issue of up to Rs 1,291.4 crore and an offer-for-sale of up to 3,42,00,000 equity shares.
The proceeds from the fresh issue to the tune of Rs 968.6 crore will be allocated for investment in the company’s subsidiary, Premier Energies Global Environment Pvt Ltd, for part-financing the establishment of a 4 GW Solar PV TOPCon Cell and 4 GW Solar PV TOPCon Module manufacturing facility in Hyderabad, Telangana, and the remaining funds will be used towards general corporate purposes.
Premier Energies is an integrated solar cell and solar module manufacturer with 29 years of experience and an annual installed capacity of 2 GW for solar cells and 4.13 GW for solar modules. It has five manufacturing facilities.
Kotak Mahindra Capital Company, J P Morgan India and ICICI Securities are the book-running lead managers to the offer.
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