Solarworld Energy Solutions IPO: What Does Grey Market Premium (GMP) Signal Ahead Of Listing?

The initial public offering (IPO) of Solarworld Energy Solutions, which opened on Tuesday, September 23, will conclude its subscription process today, on September 25.

The IPO was booked 9.39 times as of 12:04 p.m. on Thursday. Overall, investors bid for 7,59,75,606 shares against the 80,93,092 shares on offer.

The unlisted shares of Solarworld Energy Solutions have been trading at a premium in the grey market (GMP), indicating positive listing gains for investors.

As the Day 3 subscription gets underway, the GMP for Solarworld Energy Solutions Limited remains in focus on the final day of bidding.

The GMP for the Solarworld Energy Solutions IPO stood at Rs 52 per share as of 11:30 a.m. on September 25. It indicates a listing price of Rs 403 apiece at a premium of 14.81% over the upper limit of the IPO price band.

This means the unlisted shares of the company were trading at Rs 403 per share in the private market. Investors bidding for the issue can expect a potential gain of up to 15% when the shares of Solarworld Energy Solutions list on BSE and NSE next week.

Note: GMP does not represent official data and is based on speculation. GMP data sourced from InvestorGain.

The Solarworld Energy Solutions IPO is a book build issue of Rs 490 crore. It comprises a fresh issue of 1.25 crore shares worth Rs 440 crore and an offer-for-sale (OFS) of 14 lakh shares amounting to Rs 50 crore.

The price band for the IPO is set between Rs 333 and Rs 351 per share.

The IPO was booked 1.23 times on Day 1 and 4 times on Day 2.

The lot size for an application is 42. The minimum amount of investment required by a retail investor is Rs 14,742.

Nuvama Wealth Management Ltd. is the book running lead manager and MUFG Intime India Pvt.Ltd. is the registrar of the issue.

Solarworld Energy Solutions provides engineering, procurement and construction (EPC) services for setting up solar projects. It is also a manufacturer of solar modules with an annual capacity of 1.8 GW.

IPO allotment status for Solarworld Energy is expected to be finalised on September 26. Shares of Solarworld Energy Solutions are tentatively scheduled to be listed on the BSE and NSE on September 30.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.