Premier Energies IPO Listing:The IPO of Premier Energies, a leading company working in the solar industry, has proved to be a blockbuster for investors. The company’s shares made a strong entry in the stock market today on 3 September. Premier Energies’ stock was listed on BSE today at Rs 991, while the IPO price was Rs 450. In this sense, the stock gave a return of 120 percent on listing itself. Now the question arises whether investors should sell the shares after earning so much profit.
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Premier Energies : Was subscribed 75 times
This IPO got a bumper response from investors. Premier Energies’ IPO was 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 was subscribed 212.42 times. While 15% of the IPO was reserved for non-institutional investors and it was subscribed 50.98 times. The portion reserved for employees in the IPO was subscribed 11.32 times. They got a discount of Rs 22 per share.
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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.
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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
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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.)
