Acme Solar has raised Rs 2,800 crore through a qualified institutional placement (QIP), one that has been welcome by market participants. In fact, the company's QIP has drawn strong participation from domestic mutual fund and insurance companies as the renewable energy firm looks to fund expansion and pare debt.
The QIP was priced at Rs 279.50 per share, a 5% discount to the floor price, and saw robust demand from domestic institutional investors.
Key investors who have participated in the QIP included Nippon India Mutual Fund, HDFC Mutual Fund, SBI Mutual Fund, ICICI Prudential Mutual Fund, Kotak Mutual Fund, and SBI Life Insurance, among others.
Markets have favoured Acme Solar in the wake of their latest QIP, with the stock notably reaching a 52-week high earlier this week. On Friday, the stock is gained 1.6%, marking a 65% surge in stock in the last six months.
Acme Solar has said the proceeds of the QIP will be deployed across four objectives: Funding its renewable expansion plans, executing future growth pipeline, reducing corporate debt and strengthening the balance sheet.
Acme Solar's fundraise, though, comes at a difficult time for the renewable energy sector, where most companies have seen a slight slowdown of momentum, as far as the push for renewables are concerned.
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