Premier Energies To Seek Rs 1500 Crore In IPO Soon

Premier Energies Limited, India’s second largest integrated solar cell and solar module manufacturer (in terms of annual installed capacity of 2 GW and 3.36 GW, respectively as per a Frost & Sullivan Report), as of March 31, 2024, has filed the draft red herring prospectus (DRHP) with capital markets regulator, SEBI to raise more than Rs. 1,500 crores through an initial public offering (IPO).

The filing comes at a time when the leading industry player, Waaree Energies is also expected to tap the markets, at a time when market enthusiasm for renewable energy players has possibly never been higher.

According to the draft red herring prospectus, the Initial Public Offering of the Hyderabad-based company consists of a Fresh Issue of equity shares aggregating up to Rs. 1500 crores and an Offer for Sale of up to 2,82,00,000 Equity Shares by the Selling Shareholders. Under the offer for sale component, South Asia Growth Fund II Holdings LLC will divest 2,38,46,400 equity shares and South Asia EBT Trust will divest 1,53,600 equity shares and promoter Chiranjeev Singh Saluja will sell 42,00,000 equity shares.

The company, in consultation with the BRLMs, may consider a Pre-IPO placement of specified securities for up to Rs. 300 crores. If the Pre-IPO placement is undertaken, the fresh issue will be reduced to the extent of such Pre-IPO placement.

Premier Energies Limited which was established in 1995 by Surender Pal Singh Saluja, Chairman and Whole-Time Director, proposes to utilize the Net Proceeds of the Fresh Issue towards investment worth Rs. 1168 crores in its subsidiary, Premier Energies Global Environment Private Limited (PEGEPL) for part-financing the establishment of a 4 GW Solar PV TOPCon Cell and 4 GW Solar PV TOPCon Module manufacturing facility in Hyderabad, Telangana and the rest towards general corporate purposes.

The company which is into manufacturing of solar PV cells and solar modules, execution of EPC projects, independent power production, O&M services with respect to EPC projects executed by the company and sale of other solar-related products has customers across IPPs, OEMs and off-grid operators such as NTPC, TATA Power Solar Systems Ltd, Panasonic Life Solutions Pvt Ltd, Continuum Green Energy (India) Pvt Ltd, Shakti Pumps (India) Ltd, First Energy 6 Pvt Ltd (Thermax Group company), Luminous Power Technologies Pvt Ltd, Hartek Solar Pvt Ltd, Green Infra Wind Energy Ltd (subsidiary of Sembcorp Green Infra Ltd) etc.

Premier Energies, which has five manufacturing facilities, all of which are situated on land owned by the company, in Hyderabad, Telangana has become the largest Indian exporter of solar cells to the United States (one of the largest markets for solar panels globally) for the nine months ended December 31, 2023 .

The company’s revenue from operations increased at a compounded annual growth rate (CAGR) of 42.71% from Fiscal 2021 to Fiscal 2023. As of Fiscal 2023 its revenue from operations was Rs. 1,428 crores and Rs. 2,017 crores for the nine months ended December 31, 2023. As of March 15, 2024, the company had an order book of Rs. 5,362 crores.

Kotak Mahindra Capital Company Ltd, J.P. Morgan India Private Ltd and ICICI Securities Ltd are the book running lead managers to the issue. The equity shares are proposed to be listed on BSE and NSE.