Premier Energies IPO: Issue To Open On 27th August; Check Price Band, Size, Listing Date & More

On Tuesday, August 27, 2024, Premier Energies Limited will begin accepting its bid/offer for its equity share initial public offering. Monday, August 26, 2024, is the day of the anchor investor bid, and the bid offer will end on Thursday, August 29, 2024. A fresh issue of up to Rs 12,914 million and an offer for sale (OFS) of up to 34,200,000 equity shares make up the total offer size. Bids can be placed for a minimum of 33 equity shares and in multiples of 33 equity shares after that. The offer's price range is Rs 427 to Rs 450 per equity share.

In order to partially finance the construction of a 4 GW Solar PV TOPCon Cell and 4 GW Solar PV TOPCon Module manufacturing facility in Hyderabad, Telangana, India, which is expected to cost Rs 9,686.03 million and to be executed in FY 2025 and FY 2026, the company plans to use the net proceeds from the fresh issue for the following purposes: (i) Investment in its subsidiary, Premier Energies Global Environment Private Limited; and (ii) General corporate purposes.

Up to 26,827,200 equity shares from South Asia Growth Fund I Holdings LLC, up to 172,800 equity shares from South Asia EBT Trust (an investor selling shareholder), and up to 7,200,000 equity shares from Chiranjeev Singh Saluja (a promoter selling shareholder) will be offered in the offer for sale of up to 34,200,000 equity shares.
When bidding in the Employee Reservation Portion, eligible employees would receive a discount of Rs. 22 per equity share.

The Red Herring Prospectus of the company, dated August 20, 2024, filed with the Registrar of Companies, Telangana, at Hyderabad, SEBI, and the Stock Exchanges, is the means by which the equity shares are being issued. It is proposed that the equity shares made available through the Red Herring Prospectus be listed on BSE and NSE.

Using the book-building process, the offer is being made, with a maximum of 50% of the net offer being made available for proportionate allocation to Qualified Institutional Buyers (QIBs). However, the company may, at its discretion and in consultation with the BRLMs, allocate up to 60% of the QIB portion to anchor investors.

Additionally, only mutual funds will be eligible for 5% of the Net QIB portion to be allocated proportionally, provided that valid bids are received at or above the offer price. The remaining net QIB portion will be allocated proportionately to all QIBs (apart from Anchor Investors), including Mutual Funds, provided that valid bids are received at or above the Offer Price.

Moreover, Non-Institutional Investors (NIIs) would be entitled to receive at least 15% of the net offer of which, one-third of the Non-Institutional Category will be allotted to bidders with bids exceeding Rs 200,000 and up to Rs 1,000,000, while the remaining two-thirds of the Non-Institutional Category will be made available to bidders with bids exceeding Rs 1,000,000.

The book-running lead managers for Premier Energies IPO are ICICI Securities Limited, J.P. Morgan India Private Limited, and Kotak Mahindra Capital Company Limited.