Premier Energies IPO Set to List With 100% Premium :All eyes will be on the listing of the IPO of Premier Energies, a leading company working in the solar industry, tomorrow i.e. on 3 September 2024. The grey market premium of this IPO has raised the expectations of investors. Its GMP has crossed 100 per cent. The IPO also received a bumper response from investors and it was subscribed 75 times. The brokerage believes that the company is in a better position to take advantage of the growing market of solar energy. The listing of this stock is to be done on 3 September 2024.
Premier Energies : 75 times subscribed
Premier Energies’ IPO has been subscribed 75 times overall. 35% of the IPO was reserved for retail investors and this portion has been subscribed 7.44 times so far. 50% of the IPO was reserved for qualified institutional buyers and it has been subscribed 212.42 times. 15% of the IPO was reserved for non-institutional investors and it has been subscribed 50.98 times so far. The portion reserved for employees in the IPO has been subscribed 11.32 times. They have received a discount of Rs 22 per share.
GMP increased to 106%
The unlisted stock of Premier Energies is seen at a premium of Rs 480 in the grey market, which is 106 per cent in terms of the upper price band of Rs 450. The price band for the IPO was fixed at Rs 427-450 per share. The size of the IPO of solar cell and module manufacturer company Premier Energies Limited was Rs 2830 crore.
What is the company’s outlook?
Brokerage house Choice Broking says that with proactive regulations, policy support and commitment by the government towards renewable energy, the domestic solar manufacturing market is likely to see strong growth in the mid-term. Manufacturers like PEL are well placed to benefit from the expanding market with their dominant market position. Continued restrictions on trade with China by developed economies like the USA and Europe will continue to provide export opportunities for the company in the mid-term.
The brokerage says that international solar wafer and cell prices have been on a declining trend since mid-2022 and current prices may be lower than FY21 levels. The decline in raw material prices has had a positive impact on the company’s financial performance during FY24 and Q1 FY25. Thus, any volatility in raw material prices will be negative for the company.
What are the strengths of the company
• An integrated solar cell and solar module manufacturer
• A long track record in the solar module manufacturing market
• Experienced in solar cell-line production
• A diversified customer base with client relationships within India and a strong order-book overseas
• Senior Management Team led by an experienced promoter
Key risks and concerns
• A general slowdown in global economic activity
• Unfavorable government policies and regulations
• Disruption in global supply chains mainly due to geo-political tensions
• Difficulty expanding into foreign and US markets
• Delay in commissioning of expansion projects
• Unfavorable foreign currency exchange rates
• Volatility in prices of key raw materials
• Competition from Chinese imports
(Disclaimer: The views or advice on the stock are given by experts and brokerage houses. These are not the personal views of Financial Express. There are risks in the market, so take expert advice before investing.)
