The ₹2,900-crore initial public offering of ACME Solar Holdings enters its second day with overall subscription of 0.39 times. The IPO comes with a price band of ₹275-289 a share and will close on Friday. The issue is a combination of a fresh issue of ₹2,395 crore, and an offer-for-sale of ₹505 crore by the promoter ACME Cleantech Solutions. The minimum application lot size is 51 shares.
At least 75 per cent of the public issue has been reserved for QIBs, up to 15 per cent for non-institutional investors, and 10 per cent for retail investors. The portion reserved for retail investors was subscribed 1,19 times on the first day itself, while the quota for employees (4.03 lakh shares) was subscribed 0.60 times. On the other hand, the portions for NIIs and QIBs was subscribed 0.32 times and 0.15 times, respectively.
Acme Solar Holdings on Tuesday raised ₹1,300.5 crore from anchor investors as part of the IPO. The company allotted 4.5 crore shares at ₹289 a share to 58 anchor investors.
Marquee institutional investors such as Abu Dhabi Investment Authority, Goldman Sachs, Morgan Stanley, Nomura, Societe Generale, HSBC Global, BNP Paribas Funds, CLSA Global, Prudential Hong Kong, Eastspring Investments, Oaks Emerging Umbrella Funds Plc, Lion Global, Great Eastern Life, Copthall Mauritius, Susquehanna Pacific, Citigroup and Integrated Core Strategies were among the investors who participated in the anchor book.
Among domestic mutual funds, Nippon Life India, HDFC Mutual Fund, ICICI Prudential MF, Mirae Asset, Tata Mutual Fund, SBI Life Insurance, ICICI Prudential Life, Bandhan MF, Manulife, Invesco India, Baroda BNP Paribas, SBI General Insurance, Abakkus Diversified Alpha Fund, Kotak Mahindra Life, and Edelweiss Life were also allotted shares in the anchor book.
ACME Solar Holdings intends to utilise the proceeds from the fresh issuance towards payment of debt (₹1,795 crore) and a portion will be used for general corporate purposes.
Nuvama Wealth Management, ICICI Securities, JM Financial, Kotak Mahindra Capital Company and Motilal Oswal Investment Advisors are the issue’s lead book-running managers, while Kfin Technologies is the registrar.