The IPO of ACME Solar Holdings Ltd, with a price range of ₹275-289, concluded on Friday, achieving an overall subscription of 2.75 times. The IPO received bids for approximately 16 crore shares against the 5.82 crore shares available.
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 issue drew a modest response from Qualified Institutional Buyers (QIBs), who oversubscribed by 3.54 times. Within this category, Foreign Institutional Investors (FIIs) placed the highest bids, followed by domestic financial institutions and mutual funds. Retail investors also showed considerable interest, subscribing 3.10 times their allocated shares. The employee segment received moderate interest, with a subscription of 1.59 times; they will get a discount of ₹27 per share.
Non-Institutional Investors (NIIs) subscribed at 0.97 times overall, with larger bids (above ₹10 lakh) at 0.86 times and smaller bids (₹2 lakh to ₹10 lakh) at 1.18 times.
Word of advice
Kranthi Bathini, Director of Equity Strategy at WealthMills Securities Pvt Ltd, said: . “Green energy stocks have performed well over the past two years, and ACME’s IPO saw strong interest from both retail and institutional investors. Bathini observed that while short-term listing gains could be expected, market volatility has led many retail investors to exit IPO investments within the first 15 days. “For serious long-term investment, observing the company’s performance over a few quarters would be prudent,” he advised, referring to Ola Electric’s recent IPO performance as an example.
The IPO’s strong demand highlights the renewable energy sector’s appeal, buoyed by government support and market optimism. With listing gains anticipated, ACME Solar’s market debut is expected to attract significant attention, further underscoring investor confidence in India’s green energy landscape.
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.
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.