ACME Solar Holdings Limited IPO (ACME Solar Holdings IPO) Detail Review –
ACME Solar Holdings Limited IPO (ACME Solar Holdings IPO) Detail is set to open from 6th Nov 2024 to 8th Nov 2024. In this article we will analyze the financials , strengths and weaknesses of the ACME Solar Holdings Limited IPO (ACME Solar Holdings IPO). Keep scrolling below to read more!
ACME Solar Holdings Limited IPO (ACME Solar Holdings IPO) Overview –
Established in 2015, ACME Solar Holdings Limited is an Indian electricity producer from renewable energy sources. The company is one of the largest producers of electricity from wind and solar energy in India.
The company specializes in the development, construction, ownership, operation and maintenance of large-scale renewable energy projects. The company achieves this through its in-house engineering, procurement and construction (EPC) division and operations and maintenance (O&M) team. The company’s revenue is generated by selling electricity to various customers, including plants supported by the central and state governments.
As of March 31, 2024, the company had a total operational project capacity of 1,320 MW (1,802 MWp) in solar power projects. In addition, it had a contracted project capacity of 1,650 MW, comprising 1,500 MW (2,192 MWp) of solar power projects and 150 MW of wind power projects. In addition, the awarded project capacity under construction amounted to 2,380 MW, consisting of 300 MW of solar power projects, 830 MW of hybrid power projects and 1,250 MW of FDRE power projects.
Competitive strengths
- Largest renewable energy company with strong industry growth in the IPP business;
- End-to-end value chain and integrated approach to renewable energy project development through in-house project development, EPC and O&M teams;
- An expansive portfolio diversified across different renewable energy technologies;
- Long-term stable cash flows based on contracts with central and state government agencies;
- Access to diversified funding sources;
- Design and value engineering leading to greater efficiency; and
- Experienced promoters and management team
As of March 31, 2024, the company had 214 permanent employees in various departments.
ACME Solar Holdings Limited IPO (ACME Solar Holdings IPO) Synopsis-
ACME Solar Holdings Limited IPO (ACME Solar Holdings IPO) is set to be open from 6th Nov 2024 to 8th Nov 2024, offering combination of fresh issue of 8.29 crore shares aggregating to Rs 2,395.00 crores and offer for sale of 1.75 crore shares aggregating to Rs 505 crores. This NSE,BSE IPO follows a Book Built Issue IPO with tentative listing date fixed as Wednesday, November 13, 2024.
The total issue size of this IPO amounts to Rs. 2,900.00 Crores. The company has allocated shares 10% to retail investors, 75% to institutional and 15% to non institutional investors.
| Particulars | Details |
| Opening Date | 6th Nov 2024 |
| Closing Date | 8th Nov 2024 |
| Lot Size | 51 Shares |
| Face Value | Rs 2 |
| IPO Size | Rs. 2,900.00 Cr |
| Fresh Issue | Rs. 2,395 Cr |
| IPO Price Range | Rs. 275 – 289 |
| Min. Investment | Rs. 14,739 |
| Offer for Sale (OFS) | Rs. 505.00 Cr |
| Employee Discount | Rs 27 per share |
| Basis of Allotment | 11th Nov 2024 |
| Refunds | 12th Nov 2024 |
| Listing Date | 13th Nov 2024 |
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | Click Here |
ACME Solar Holdings Limited IPO (ACME Solar Holdings IPO) Market Lot
ACME Solar Holdings Limited IPO (ACME Solar Holdings IPO) minimum market lot is 51 shares with ₹14,739 application amount. The retail investors can apply up to 13 lots with 663 shares or ₹191,607 amount.
| Application | Lot Size | Shares | Amount |
| Retail Minimum | 1 | 51 | ₹14,739 |
| Retail Maximum | 13 | 663 | ₹191,607 |
| S-HNI Minimum | 14 | 714 | ₹206,346 |
| S-HNI Maximum | 67 | 3,417 | ₹987,513 |
| B-HNI Minimum | 68 | 3,468 | ₹1,002,252 |
ACME Solar Holdings Limited IPO (ACME Solar Holdings IPO) Book Running Lead Managers –
- Nuvama Wealth Management Limited
- ICICI Securities Limited
- Jm Financial Limited
- Kotak Mahindra Capital Company Limited
- Motilal Oswal Investment Advisors Limited
ACME Solar Holdings Limited IPO (ACME Solar Holdings IPO) Registrar to the offer –
The registrar for the ACME Solar Holdings Limited IPO (ACME Solar Holdings IPO) is Kfin Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
The Objective Of The Issue –
The company desires to use the Net Proceeds from the Issue to fulfill its following goals:
- Repayment/prepayment, in full or in part, of certain outstanding borrowings availed by the Subsidiaries; and
- General corporate purposes.
Key Performance Indicator –
The market capitalization of ACME Solar Holdings Limited is Rs 17486.81 Cr.
KPI as of March 31, 2024.
| KPI | Values |
| ROE: | 38.84% |
| ROCE: | NA |
| EBITDA Margin: | 82.56% |
| PAT Margin: | 47.62% |
| Debt to equity ratio: | 2.66 |
| Earning Per Share (EPS): | ₹12.55 (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 26.95% |
| Net Asset Value (NAV): | ₹49.62 |
Financial Status –
ACME Solar Holdings Limited’s revenue increased by 7.71% and profit after tax (PAT) rose by 22084.28% between the financial year ending with March 31, 2024 and March 31, 2023.
Below is the synopsis of the company’s financial data for the financial year that concluded on 31 March 2024.
The company’s total assets are Rs. 13,394.13 crore.
The company’s total revenue is Rs. 1,466.27 crore.
The company’s PAT is Rs. 697.78 crore.
The company’s net worth is Rs. 2,590.87 crore
| Particulars(in Rs. Crores) | 30 June 2024 | 31 MAR 24 | 31 MAR 23 | 31 MAR 22 |
|---|---|---|---|---|
| Revenue From Operations | 340.01 | 1,466.27 | 1,361.37 | 1,562.73 |
| PAT | 1.39 | 697.78 | -3.17 | 62.01 |
| Net Worth | 1,942.12 | 2,590.87 | 1,900.56 | 1,908.76 |
| Total Assets | 13,985.14 | 13,394.13 | 12,186.95 | 10,887.62 |
| Total Borrowings | 9,319.91 | 8,217.59 | 8,657.35 | 7,563.60 |
Evaluation of P/E Ratio :
The P/E Ratio of ACME Solar Holdings Limited is 44.87x.
Comparative Analysis with Listed Peers
The average P/E Ratio of the industry is 170.3x.
Peers of ACME Solar Holdings Limited IPO (ACME Solar Holdings IPO) –
| Company Name | EPS (Basic) | EPS (Diluted) | NAV (per share) (Rs) | P/E (x) | RoNW (%) | P/BV Ratio | Financial statements |
|---|---|---|---|---|---|---|---|
| ACME Solar Holdings Limited | 12.55 | 12.55 | 49.61 | 26.93 | Consolidated | ||
| Adani Green Energy Ltd | 6.21 | 6.2 | 85.86 | 291.7 | 7.22 | 21.27 | Consolidated |
| ReNew Energy Global PLC | 9.94 | 9.92 | 332.16 | 48.8 | 3.07 | 1.46 | Consolidated |
ACME is the smallest company in terms of operational capacity, scale, and revenue. Further, the Profit Margin shown in the financials is derived from the sale of exceptional items like assets.
Although the firm net debt to equity ratio is low compared to other competitors such as Adani Green indicating the company is less leveraged among other competitors, the investors should be aware that individually, the company’s debts are high as we look deeper.
Dividend Policy
No dividends paid by the company in the last three fiscal.
ACME Solar Holdings Limited IPO (ACME Solar Holdings IPO) Strengths –
A major participant in renewable energy that is well-positioned to benefit from robust industry tailwinds.
Capabilities across the whole value chain and an integrated strategy for creating renewable energy projects by internal teams in charge of project conception, engineering, procurement, construction, operations, and maintenance.
Broad portfolio including a variety of renewable energy technologies.
The dedicated senior management team and promoters.
ACME Solar Holdings Limited IPO (ACME Solar Holdings IPO) Weakness –
Because the company depends on extremely competitive renewable energy power project auctions, it might not be able to expand its portfolio of renewable energy power projects.
The company’s top 10 off-takers account for 89.97%, 89.15%, and 87.77% of its operating revenue in Fiscal 2024, 2023, and 2022, respectively. The business, financial situation, operational outcomes, and cash flows may all suffer if any of these off-takers were to leave.
It might be exposed to serious dangers when it comes to modernizing and enhancing its renewable energy projects, which could lead to lower power production and higher maintenance costs.
ACME Solar Holdings Limited IPO (ACME Solar Holdings IPO) Status –
ACME Solar Holdings Limited IPO (ACME Solar Holdings IPO) allotment status will be available on Kfin Technologies Limited.
Click on Kfin Technologies Limited to get allotment status.
ACME Solar Holdings Limited IPO (ACME Solar Holdings IPO) GMP Today –
IPO’s last GMP is ₹10, last updated 6th Nov 2024. With the price band of 289.00, IPO’s estimated listing price is ₹299(cap price + today’s GMP). The expected percentage gain/loss per share is 3.46%.
Note : The GMP prices shown here are only news related to the grey market. We do not trade/deal in grey market or subject to rates, nor do we recommend trading in grey market.
Disclaimer:
- IPO Grey Market Premium (ACME Solar Holdings Limited IPO GMP) mention is valid for the specific date as mentioned in the header.
- We are not buying and selling IPO forms on IPO Grey Market.
- Don’t decide to subscribe to an IPO just based on the initial price, as it can change before the listing.Subscribe only considering Fundamentals of the companies.
Conclusion –
Hope the details presented in this blog will assist you in learning about the financial performance of the company. Before making an investment in the company’s upcoming initial public offering (IPO), thoroughly research the company, its finances, business prospects, and market trends.
Also, investors should consult their financial advisor, conduct further due diligence, analyze industry trends and the competitive landscape, and consider risk factors before making an investment decision.
For all such latest information on upcoming IPOs, keep visiting our website.
