ACME Solar Holdings IPO: Important details about upcoming IPO

ACME Solar Holdings Limited filed a DRHP and will be coming up with its public issue in the upcoming time; the public issue will be offering a 100% book-built offer. This upcoming IPO is offering a fresh issue worth up to Rs 2000 Crore of equity shares and an offer for sale worth up to Rs 1000 equity shares, which sums up a total issue size of worth up to Rs 3000 Crore. The face value is reported as Rs. 2 for each share. This new IPO issue is being made through the book-building process with a reservation of not more than 50% of the new offer reserved for Qualified Institutional Investors, not less than 15% reserved for NII and the remaining 35% or more reserved for Retail Individuals. The exact dates for the IPO's subscription opening and closing, as well as the price band, will be announced soon.

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About ACME Solar Holdings Limited

ACME Solar Holdings Limited was incorporated in 2015 and is one of the largest renewable energy companies in India. It has a diversified portfolio of solar, wind, hybrid, and firm and dispatchable renewable energy. In addition, we are one of the biggest independent power producers in India and develop, construct, own, operate, and maintain utility-scale renewable energy projects. It has an in-house EPC Division and O&M Team that ensures end-to-end operations. We generate revenue ultimately accruing from sales to central government and state government-backed entities. With operational capacity already at a significant level and continuous expansion taking place, we remain committed to sustainable energy development and to our leading position in the renewable energy sector.

ACME Solar Holdings Limited IPO Objectives

The company mentioned in the DRHP that it plans to utilise the Net Proceeds for various strategic purposes. These include Repayment/prepayment, in full or in part, of certain outstanding borrowings availed by our Subsidiaries. And the further allocation will be for general corporate purposes - The amount utilised for general corporate purposes shall not exceed 25% of the Gross Proceeds.

Financials of the Company

For the FY year ended March 2024, compared to March 2023, the company's assets increased by 9.91% to Rs 13,394.13 crore. However, revenue increased by 1.88% to Rs 1,319.25 crore, and profit after tax showed a drastic change from negative Rs 3.17 crore to Rs 698.23 crore for the same period. Total borrowing decreased to Rs 8,216.66 crore from Rs 8,657.35 crore as compared to FY24 from FY23. These numbers show how the company's finances have been and where exactly there is a need to make strategic changes.

Lead manager(s), Registrar of IPO & Promoter(s) of the Company

The IPO is managed by Nuvama Wealth Management Limited, ICICI Securities Limited, JM Financial Limited, Kotak Mahindra Capital Company Limited and Motilal Oswal Investment Advisors Limited. The company has appointed KFin Technologies Limited as the registrar for the issue, while the company has Mamta Upadhyay, Manoj Kumar Upadhyay, Acme Cleantech Solutions Private Limited, MKU Holdings Private Limited, and Upadhyay Family Trust as their promoter(s).

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