ACME Solar Makes Weak Market Debut; Shares Slump over 13 %

Shares of renewable energy firm ACME Solar Holdings Ltd on Wednesday listed with a discount of over 13 per cent from the issue price of Rs 289.

The company's stock made its market debut at Rs 259, down 10.38 per cent from the issue price on the BSE. It further tumbled 11.76 per cent to Rs 255.

At the NSE, shares of the renewable energy firm listed at Rs 251, reflecting a slump of 13.14 per cent.

The company's market valuation stood at Rs 16,358.55 crore.

The initial share sale of ACME Solar Holdings Ltd got subscribed 2.75 times on the closing day of bidding on Friday.

The Initial Public Offering (IPO) had a price band of Rs 275 to Rs 289 per share.

The Rs 2,900-crore IPO of the Gurugram-based company had a fresh issue of shares worth Rs 2,395 crore and an offer-for-sale (OFS) of shares valued at Rs 505 crore by ACME Cleantech Solutions.

ACME Solar Holdings intends to utilise the proceeds from the fresh issuance to the extent of Rs 1,795 crore towards payment of debt, and a portion will be used for general corporate purposes.

Over the years, ACME Solar has diversified and expanded its portfolio from solar power projects to becoming an integrated renewable energy company in India.

The company develops, builds, owns, operates and maintains utility-scale renewable energy projects through its in-house engineering, procurement and construction (EPC) division and its operation and maintenance (O&M) team.

ACME Solar generates revenue by selling electricity to various off-takers, including central and state government-backed entities.