Premier Energies Ltd has submitted a draft red herring prospectus (DRHP) to SEBI for its initial public offering (IPO), aiming to raise over INR 1,500 crore. The company plans to allocate INR 1,168 crore of the IPO proceeds to its subsidiary, Premier Energies Global Environment, to support the establishment of a 4 GW TOPCon solar cell and module manufacturing facility in Hyderabad, Telangana. The remaining funds will be utilized for general corporate purposes.
Established in 1995 by Surender Pal Singh Saluja, Premier Energies Ltd is India’s second-largest integrated solar cell and module manufacturer, boasting an annual installed capacity of 2 GW and 3.36 GW, respectively, as of March 31, 2024. The company’s IPO comprises a fresh issue of equity shares worth up to INR 1,500 crore and an offer for sale of up to 2,82,00,000 equity shares by selling shareholders.
The offer for sale includes divestment by South Asia Growth Fund II Holdings LLC (2,38,46,400 equity shares), South Asia EBT Trust (1,53,600 equity shares), and promoter Chiranjeev Singh Saluja (42,00,000 equity shares). Additionally, Premier Energies may consider a pre-IPO placement of specified securities for up to INR 300 crore, which would reduce the size of the fresh issue.
Premier Energies also engages in EPC projects, independent power production, and O&M services, with five manufacturing facilities in Hyderabad, Telangana. The company claims to be the largest Indian exporter of solar cells to the United States, a significant market for solar panels globally.
Its revenue from operations exhibited a CAGR of 42.71% from fiscal 2021 to fiscal 2023, reaching INR 1,428 crore in Fiscal 2023 and INR 2,017 crore for the nine months ended Dec. 31, 2023. As of March 15, 2024, Premier Energies had an order book of INR 5,362 crore.
Kotak Mahindra Capital Co. Ltd, J.P. Morgan India, and ICICI Securities Ltd are the book running lead managers to the issue, and the equity shares are proposed to be listed on both the BSE and NSE.
