24-Apr-2024
2 mins read
Premier Energies IPO is offering a 100% book-built public issue. This upcoming IPO is offering a fresh issue of worth up to Rs 1500 Crore equity shares and an offer for sale of 28,200,000 of equity shares. The face value is reported as Rs. 1 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 Non-Institutional Investors and the remaining 35% or more reserved for Retail Individuals. Application for public issue and subscription opening/closing dates and other important dates will be announced soon; however, keep in mind that the public offering is proposed to be listed on both the exchanges, i.e. NSE and BSE.
About the Company
Premier Energies, with 29 years of experience in the solar industry, stands as India’s second-largest integrated solar cell and solar module manufacturer. As of March 31, 2024, the company boasts annual installed capacities of 2 GW and 3.36 GW, respectively (Source: F&S Report). Additionally, they hold the position of the second largest domestic manufacturer of solar cells by annual installed capacity as of the same date (Source: F&S Report). The company’s business encompasses the manufacturing of solar PV cells and modules, and the sale of other solar-related products. With five manufacturing facilities located in Hyderabad, Telangana, India, all situated on land owned by the company, they are committed to driving sustainable solar solutions forward.
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Objectives of the Public Offering
The company proposes to utilize a portion of the Net Proceeds for funding capital expenditure requirements in relation to the expansion of manufacturing capacities in the form of a 4 GW TOPCon cell line and 4 GW solar module line, which may be subject to the risk of unanticipated delays in implementation, cost overruns and other risks and uncertainties. Further, they intend to utilize a portion of the net proceeds towards investment in their subsidiary PEGEPL to finance the Project. The total estimated cost of setting up the Project is ₹34,642.75 million of which propose to deploy a sum of ₹11,687.38 million from the Net Proceeds.
Financials of the Company (Amt in Crores)
The company reported net revenue of Rs 1428.53 Crore, assets worth Rs 2110.69 Crore, and profit after tax reported as Rs -13.34 Crore for the FY 22-23. It is clear that the PAT increased by 7.42% even though it is still in negative side whereas revenue rose by 92.30%
| Period Ended | 30-Sep-23 | 31-Mar-23 | 31-Mar-22 | 31-Mar-21 |
| Assets | 2,938.73 | 2,110.69 | 1,341.49 | 976.87 |
| Revenue | 2,017.21 | 1,428.53 | 742.87 | 701.46 |
| Profit After Tax | 127.4 | -13.34 | -14.41 | 25.81 |
| Net Worth | 511.24 | 381.98 | 393.39 | 220.83 |
| Total Borrowing | 1,410.05 | 763.54 | 453.3 | 345.19 |
Key Performance Indicators of Premier Energies Limited
Key performance indicators of the Company reported a Return on Capital Employed as 5.94%, a Return on Net Worth of -3.35%, a Profit after-tax margin of -0.91% and a Return on Equity as -3.18 % for the year ended March 2023. If we look at the EBITDA margin, it is reported as 7.71% for the same FY.
Lead Manager, Registrar of IPO & Promoters of the Company
The IPO is managed by Kotak Mahindra Capital Company Limited, J.P. Morgan India Private Limited and ICICI Securities Limited, which is the book-running lead managers of this public issue. Whereas Kfin Technologies Limited has been appointed as the registrar for the issue while Surender Pal Singh Saluja and Chiranjeev Singh Saluja serve as the designated promoters of the company.
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