Premier Energies initial public offerings (IPO), which opened for subscription on August 27, was booked 2.17 times on the first day of bidding. The mainboard segment IPO will remain open for subscription till August 29.
The IPO has been reserved up to 50 per cent for Qualified Institutional Buyers (QIBs), with 15 per cent set aside for Non-Institutional Investors (NIIs). Retail investors are reserved 35 per cent of the offer. Additionally, employees are eligible for a ₹22 discount per equity share.
Premier Energies Limited, founded in April 1995, specializes in producing integrated solar cells and panels. The company’s product range includes solar cells, solar modules, monofacial and bifacial modules, along with EPC and O&M solutions. It operates five manufacturing facilities, all located in Hyderabad, Telangana, India.
Premier Energies IPO subscription status
The Premier Energies IPO was subscribed over 2.17 times on the first day of bidding. The IPO received 9,51,45,204 share applications against offered 4,38,72,888 shares on August 27, as per data by Chittorgarh.
The non-institutional investors (NII) portion lead the pack by receiving 5,19,83,118 shares against offered 94,01,333 shares. Meanwhile, retail portion received 4,19,09,571 applications and QIB remained undersubscribed with only 4,47,150 applications.
Premier Energies IPO details
The Premier Energies IPO includes a fresh issue of equity shares worth up to ₹1,291.4 crore, along with an Offer for Sale (OFS) of up to 3.42 crore shares by existing shareholders, totaling around ₹1,539 crore based on the upper price band of ₹450.
As part of the offer-for-sale, South Asia Growth Fund II Holdings LLC (SAGF II) will sell 2.68 crore equity shares, South Asia EBT Trust will divest 1,72,800 equity shares, and promoter Chiranjeev Singh Saluja will offload 72,00,000 equity shares.
The promoters of the company collectively hold a 72.23 per cent stake, while the public owns 26.12 per cent of the shares, which includes holdings by South Asia Growth Fund II Holdings LLC. The remaining 1.65 per cent of the shares are held by employee trusts.
Kotak Investment Banking, JP Morgan, and ICICI Securities are the book-running lead managers for the issue.
Premier Energies IPO GMP
The grey market price for Premier Energies’ IPO stands at + ₹390, meaning the shares were trading at a premium of ₹390, as reported by investorgain.com.
Based on the upper end of the IPO price band and the current grey market premium, the estimated listing price of Premier Energies shares is projected to be ₹840 per share, reflecting a 86.67 per cent increase over the IPO price of ₹450.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.