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ACME Solar Holdings IPO
ACME Solar Holdings is set to roll out a Rs 2,900 crore book. This IPO subscription is an amalgamation of a fresh issue of Rs 2,395 crore (8.29 crore shares) and an offer-for-sale of Rs 505 crore (1.75 crore shares). The firm will be listed on both BSE and NSE.
Retail investors need to invest a minimum of Rs 14,739. Small NII investors require a minimum investment of Rs 206,346 for 714 shares, which is 14 lots. Large NII investors need a minimum investment of Rs 1,002,252 for 3,468 shares, which is 68 lots.
Kfin Technologies Ltd is the registrar to the issue. Nuvama Wealth Management Ltd, ICICI Securities Ltd, Jm Financial Ltd, Kotak Mahindra Capital Company Ltd and Motilal Oswal Investment Advisors Ltd are the book running lead managers in this IPO.
ACME Solar Holdings IPO GMP Details:
The most recent GMP of the IPO is Rs 5, as of 7th November, 2024 09:30 AM. The IPO has a price band of Rs 289. The estimated listing price for ACME Solar Holdings is Rs 294, reflecting a potential gain of 09% per share.
ACME Solar Holdings IPO Details
| ACME Solar Holdings IPO Opening Date and Closing Date | 6th November to 8th November |
| Face Value | Rs 2 per share |
| Price Band | Rs 275 to Rs 289 per share |
| Lot Size | 51 Shares |
| Total Issue Size | 100,346,022 shares (aggregating up to Rs 2,900 Cr) |
| Fresh Issue | 82,871,973 shares (aggregating up to Rs 2,395 Cr) |
| Offer for Sale | 17,474,049 shares (aggregating up to Rs 505 Cr) |
| Issue Type | Book-Built Type Issue |
| Listing At | NSE, BSE |
| Shareholding Pre-Issue | 522,207,910 |
| Shareholding Post Issue | 605,079,883 |
| Basis of Allotment | Monday, 11th November, 2024 |
| Refund Initiation | Tuesday, 12th November, 2024 |
| Credit of Shares in Demat | Tuesday, 12th November, 2024 |
| Listing Date | Wednesday, 13th November, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on 8th November, 2024 |
| Draft Red Herring Prospectus | Link |
| Red Herring Prospectus | Link |
ACME Solar Holdings Company Insights
ACME Solar Holdings Limited is a renewable energy company incorporated in 2015 in India which is primarily engaged in Wind and Solar energy corporations.
The business is involved in the development, construction, ownership and management of large utility-scale renewable projects supported by its in-house engineering and maintenance capabilities. Revenue is generated through power sales to clients, including but not limited to clients in the central and state government frameworks.
ACME Solar had installed 1,320 MW of solar projects up to 31st March 2024. It has a contracted capacity of 1,650 MW that includes 150 MW of wind projects and 1,500 MW of solar projects. Furthermore, the company executes 2,380 MW of projects, which consist of 300 MW solar, 830 MW hybrid, and 1,250 MW FDRE projects.
214 people in permanent employment across the different departments.
ACME Solar Holdings Lot Size, Shares, And Their Value:
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 51 | Rs 14,739 |
| Retail (Max) | 13 | 663 | Rs 191,607 |
| S-HNI (Min) | 14 | 714 | Rs 206,346 |
| S-HNI (Max) | 67 | 3,417 | Rs 987,513 |
| B-HNI (Min) | 68 | 3,468 | Rs 1,002,252 |
ACME Solar Holdings shares offered:
| Investor Category | Shares Offered |
| QIB Shares Offered | Not less than 75.00% of the offer |
| Retail Shares Offered | Not more than 10.00% of the Offer |
| NII (HNI) Shares Offered | Not more than 15.00% of the Offer |
ACME Solar Holdings Financials:
For the period ended on 31st March, 2024 & 31st March, 2023:
| Periods Ended | 31st Mar, 2024 | 31st Mar, 2023 |
| Assets | Rs 13,394.13 Cr. | Rs 12,186.95 Cr. |
| Revenue | Rs 1,466.27 Cr. | Rs 1,361.37 Cr. |
| Profit After Tax | Rs 697.78 Cr. | Rs -3.17 Cr. |
| Net Worth | Rs 2,590.87 Cr. | Rs 1,900.56 Cr. |
| Reserves and Supplies | Rs 1,836.43 Cr. | Rs 1,146.12 Cr. |
| Total Borrowing | Rs 8,217.59 Cr. | Rs 8,657.35 Cr. |
Should You Invest in the ACME Solar Holdings IPO?
Financial Performance:
Revenue: The company generated Rs 340.01 crore in revenue during the period ended on 30th June, 2024.
Profit After Tax (PAT): The company earned a profit of Rs 1.39 crore after deducting taxes.
Net Worth: The company’s net worth, which represents the total value of the company’s assets minus its liabilities, is Rs 1,942.12 crore.
Financial Position:
Assets: The company’s total assets amounted to Rs 13,985.14 crore.
Reserves and Surplus: The company has accumulated reserves and surplus of Rs 1,837.68 crore.
Total Borrowing: The company has borrowed a total of Rs 9,319.91 crore.
ACME Solar Holdings Key Performance Indicators (KPI) and their values:
The market capitalisation of ACME Solar Holdings IPO is Rs 17,486.81 crore. As of 30th June, KPI and their values are:
| KPI | Values |
| Return on Equity (ROE) | 2.93 |
| Return on Net Worth (RoNW) | 0.07% |
| Price to Book Value (P/BV) | 7.77 |
| Debt/Equity | 3.89 |
| PAT Margin (%) | 0.41 |
Objectives of ACME Solar Holdings IPO
The company plans to use the net proceeds for two main purposes:
- Repaying or partially repaying certain outstanding loans taken by its subsidiaries.
- Meeting general corporate expenses.
Some major risks associated with the ACME Solar Holdings IPO are:
- High debt levels indicate ACME relies heavily on financing, which could be impacted by interest rate changes.
- Regulatory and economic risks from shifts in government policies on renewable energy and global economic conditions may affect operations and project timelines.
- If not controlled well, increases in material costs for solar panels and associated infrastructure will cut into profitability.
Frequently Asked Questions (FAQs)
What is the price band of ACME Solar Holdings’ IPO?
Price band has been fixed at Rs 275 and Rs 289 per share.
What is the retail investor quota of ACME Solar Holdings’ IPO?
A maximum of 10% shares shall go to the retail investors.
Where can I track ACME Solar Holdings’ stock performance?
You can track it on Unicorn Signals after listing.
How can I apply for ACME Solar Holdings’ Initial Public Offer?
Through your demat account or through your bank/financial institution during the IPO period.
When is the Last Date of IPO subscription for ACME Solar Holdings?
The cut-off time is 8th November, 2024, at 5 PM; however, most brokers stop accepting applications between 1-3 PM.
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