Premier Energies, a leading solar cell manufacturer, has announced its initial public offering (IPO) price band at Rs 427-450 per share. The company plans to raise up to Rs 2,830.4 crore from the primary market, making it one of the largest IPOs in the renewable energy sector.
The IPO consists of a fresh issue of Rs 1,291.4 crore and an offer-for-sale of 3.4 crore shares, aggregating to Rs 1,539 crore. The issue will open for subscription on August 27 and close on August 29, with a minimum bid size of 33 shares.
The proceeds from the fresh issue will be used to partially finance the construction of a 4 GW solar PV TOPCon cell and module manufacturing facility in Hyderabad. This expansion is expected to enhance Premier Energies’ production capacity and strengthen its position in the competitive solar manufacturing market.
Premier Energies operates five manufacturing facilities at three properties in Hyderabad, with an annual installed capacity of 2 GW for solar cells and 3.36 GW for solar modules. The company reported a profit of Rs 231 crore in fiscal 2024, after two years of losses, indicating a turnaround in its financial performance.
However, the company faces intense competition from solar cell and module makers from China and Southeast Asia, as well as domestic players. The IPO’s success will depend on investor appetite for the renewable energy sector and Premier Energies’ ability to execute its expansion plans.
