Premier Energies shares debut with 120% premium over issue price
Premier Energies' shares debuted on the exchanges with a 120% premium on Tuesday. The stock listed at Rs 990 on NSE and Rs 991 on BSE, compared to the offer price of Rs 450.
Ahead of its debut, the company's shares traded at a premium of over 100% in the unlisted market.
The IPO of Premier Energies received a robust response from investors, with a subscription rate of 74 times at close, driven by substantial bidding from non-institutional investors.
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The company plans to use the net proceeds to invest in its subsidiary, Premier Energies Global, to partially finance the establishment of a 4 GW Solar PV TOPCon Cell and 4 GW Solar PV TOPCon Module manufacturing facility in Hyderabad. The remaining funds will be allocated to general corporate purposes.
Premier Energies was the second-largest integrated player in India at the end of FY24, with 2 GW of annual installed capacity for cell manufacturing and 4.13 GW for module manufacturing. It is also the largest Indian exporter of solar cells to the US in FY24.
As of the date of filing the RHP, the company operates five manufacturing facilities, all located in Hyderabad, and conducts operations through eight subsidiaries both in India and overseas.
Analysts note that the company's substantial investments, including a new 4 GW TOPCon solar cell line, and its improved return on capital employed (ROCE)—which rose from 3.6% in FY22 to 25.6% in
