ACME Solar Holdings IPO: Rs 2900 Crore Offering Opens November 6
ACME Solar Holdings IPO
ACME Solar Holdings IPO: Rs 2900 Crore Offering Opens November 6—Explore the Company’s Business and Growth Potential
The highly anticipated IPO of ACME Solar Holdings, a prominent player in the renewable energy sector, is set to open on November 6.
The company aims to raise Rs 2900 crore through this public offering, providing investors with a unique opportunity to be part of India’s green energy revolution.
The IPO will remain open until November 8, with a price band expected to be announced by Monday.
IPO Details: What to Expect
Under this IPO, ACME Solar Holdings plans to issue fresh equity shares worth Rs 2395 crore. Additionally, shares valued at Rs 505 crore will be sold through an Offer for Sale (OFS) by ACME Cleantech Solutions, the sole promoter and shareholder. The company has also reserved shares worth Rs 10 crore specifically for its employees.
The distribution of shares is designed to ensure broad participation: 75% of the net offer is reserved for Qualified Institutional Buyers (QIBs), 15% for non-institutional investors, and 10% for retail investors. Notably, the IPO will open for anchor investors on November 5.
Share allotment is anticipated by November 11, with equity shares credited to the demat accounts of eligible investors by November 12. Trading on BSE and NSE is expected to commence on November 13.
Use of IPO Proceeds
ACME Solar Holdings has outlined a clear plan for the deployment of IPO proceeds. Approximately Rs 1795 crore will be allocated to repay existing debt, while the remainder will be utilized for general corporate purposes. As of August 2024, the company’s total debt stood at Rs 9,891.7 crore.
The book-running lead managers for the issue include Nuvama Wealth Management, ICICI Securities, JM Financial, Kotak Mahindra Capital Company, and Motilal Oswal Investment Advisors.
Business Overview: ACME Solar Holdings
Founded in 2015, ACME Solar Holdings has emerged as one of India’s largest independent power producers (IPPs) focused on renewable energy, primarily solar power.
The company is a significant competitor to Adani Green Energy, its only listed peer. ACME Group has been a pioneer in the solar IPP space in India, having developed an impressive 2719 MW (3668 MWp) of solar projects since inception.
Currently, the operational capacity stands at 1340 MW (1826 MWp), with an additional 3250 MW under construction and 1730 MW awarded for future development.
Financial Performance
ACME Solar Holdings reported a consolidated profit of Rs 697.8 crore for FY24, a remarkable turnaround from a loss of Rs 3.17 crore the previous year.
Despite this positive trend, revenue growth was modest, increasing by only 1.9% to Rs 1319.3 crore, up from Rs 1295 crore in FY23.
The company experienced a significant decline of 98.3% in profit during the first quarter of FY25, dropping to Rs 1.4 crore from Rs 82.3 crore in the same quarter the previous year. Revenue for this period also fell by 16.1% year-on-year, totaling Rs 309.6 crore.
Final Remarks
As ACME Solar Holdings prepares to launch its IPO, investors will have the chance to support a key player in India’s transition to renewable energy.
With a solid track record, ambitious growth plans, and a clear strategy for using IPO proceeds, ACME Solar Holdings is poised for significant impact in the renewable energy sector.
