Shares of Premier Energies were off to a solid start on its market debut on September 3 after listing at Rs 991 on the NSE, a premium of 120 per cent against the IPO issue price of Rs 450 per share. The listing gains surpassed grey market estimates where shares were trading at a premium of around 108 per cent.
The Rs 2,830 crore IPO, a mix of a fresh issue and offer for sale (OFS) was keenly watched by investors after the IPO was subscribed over 74 times over three days. Qualified institutional buyers (QIBs) subscribed 216.67 times their reserved portion, while employees subscribed 10.84 times their allotted portion. Retail investors subscribed 7.33 times their quota and non-institutional investors (NIIs) subscribed 49.81 times their reserved quota.
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At 12:30 PM, the stock was trading at Rs 858.25, up 90 per cent from the issue price, on the National Stock Exchange (NSE).
Prashanth Tapse, Senior VP (Research) at Mehta Equities says the listing was in line with our assumption considering reasonable valuations before listing, well-positioned to capitalize on the industry demand in renewable energy and an opportunity to invest in India’s second-largest solar cell and module manufacturer.
“Post listing considering 120 per cent listing gain on valuation front has moved from reasonability valued to stretched valuations which would be reason for profit booking attempts at high levels. We continue to recommend conservative investors to choose profit booking, while risk takers can continue holding for the long term as the sector outlook remains optimistic,” Tapse said.
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Shivani Nyati, head of wealth at Swastika Investmart says that this exceptional performance aligns with the pre-listing hype, fueled by the company’s strong fundamentals, robust investor response, and favorable market conditions.
The company’s diversified customer base, robust order book and recent surge in profitability have contributed to this positive sentiment, she said.
In the April-June quarter of FY25, the company reported revenue from operations of Rs 1,657.37 crore and profit after tax (PAT) of Rs 198.16 crore. In the financial year 2023-24, the company posted revenue from operations of 3,143.79 crore and PAT of 231.36 crore.
As of July 31, 2024, the company had an order book of Rs 5,926.5 crore. The total included 1,609.11 crore for non-DCR solar modules, Rs 2,214.06 crore for DCR solar modules, 1,891.11 crore for solar cells, and 212.27 crore for EPC projects.
According to Nyati, while the solar 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.
Premier Energies Ltd is the second-largest integrated solar cell and module manufacturer in India and also holds the position of the country’s second-largest solar cell producer by annual installed capacity. Their total annual installed capacity stands at 2GW for solar cells and 4.13GW for solar modules.
The company is involved in multiple stages of the solar power value chain, ranging from manufacturing solar cells and modules to offering EPC solutions, O&M services and operating as an independent power producer.
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The primary goal of the IPO is to invest Rs 968.6 crore in Premier Energies Global Environment Pvt Ltd to establish a 4 GW Solar PV TOPCon Cell and Module Facility in Hyderabad, Telangana, India.
