Premier Energies Ends At 86% Premium Over IPO Price

Shares of Premier Energies Ltd. ended on Tuesday at Rs 838.3 per share, a premium of 86.2% over its issue price of Rs 450 per share on the BSE. On the NSE, the stock closed at a premium of 86.4%. The stock listed at a premium of 120% on both the stock exchanges.

The initial public offering of Premier Energies was subscribed 74.38 times on its final day of bidding. The company raised Rs 2,830.4 crore, consisting of a fresh issue of shares worth Rs 1,291.4 crore and an offer-for-sale component of Rs 1,539 crore.

The company will use proceeds worth Rs 968.6 crore for financing establishment of a solar cell and solar module manufacturing facility in Hyderabad. The balance towards general corporate purposes.

Promoter and promoter groups hold 72.23%, while 26.12% of equity is classified as public shareholding. Post the public offering, the promoter shareholding will decrease to 60.04% and public shareholding will expand to 38.41%, as per NDTV Profit calculations.

Founded in April 1995, PEL manufactures integrated solar cells and solar panels. The company is also the second-largest solar cell and module manufacturer in India as per capacity. As of March, it has 16.2% market share in the total solar cell-installed capacity in India

The company has five manufacturing units in Hyderabad. Its total annual installed capacity for solar cells stands at 2 GW, while its solar module production capacity is 4.13 GW.

As of July 31, the company had a total order book of Rs 5,926.6 crore, of which, 25% are from the public sector undertakings and government entities, while the rest is from private players

PEL revenue has grown a compounded annual growth rate of 106% over the last three years. In fiscal 2022, the company had posted a net loss of Rs 14.4 crore, while it posted a net profit of Rs 231.4 crore in the last fiscal.