Premier Energies IPO: Another Multibagger Listing in Sight?

Premier Energies IPO listing: The upcoming solar panel manufacturer listing will keep investors on the edge of their seats. With the issue being oversubscribed by nearly 74 times alongside a triple-digit GMP (Grey Market Premium), the D-street analysts are expecting a strong debut on the market.

During the three-day subscription period, investors placed bids for around 330.98 crore shares, compared to the 4.46 crore shares available. Qualified institutional buyers (QIBs) showed the highest interest, subscribing 216.67 times their allotted quota.

Meanwhile, retail investors subscribed by nearly 7.33 times their allotted quota, employees 10.84 times, and non-institutional investors 49.81 times their reserved quota.

The Premier Energies IPO will be hitting the bourses, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on September 3 (Tuesday).

"Premier Energies Limited (PEL) is poised for a strong market debut, expected to list with a premium of 110 per cent to 120 per cent. With 29 years of experience, PEL is a major player in integrated solar cell and module manufacturing, becoming India’s second-largest such manufacturer by March 31, 2024," said Akriti Mehrotra, Research Analyst, Stoxbox.

The company boasts an annual installed capacity of 2 GW for solar cells and 4.13 GW for modules. In FY24, the company recorded a revenue of Rs. 31,437.93 million, marking an impressive 105 per cent CAGR from FY22. Its order book which is valued at Rs. 59,265.65 million as of July 31, 2024, indicates strong demand, said Mehrotra.

Premier Energies reported a net income of Rs. 2,303 million in FY24, a turnaround from the previous loss.

While the primary market remains optimistic, there are growing concerns about the overvaluation of companies going public. SME IPOs are facing even higher scrutiny as they continue to see sky-high subscription levels despite these concerns.