Premier Energies Faces Market Test as Lock-in Period Ends

A notable market event looms for the popular solar cell and module manufacturer Premier Energies as it will be completing the six-month lock-in period for a large number of its shares. A total of 106 million shares, 23% of the company’s outstanding equity, are now free to trade. This move should boost investor interest in Premier Energies.

IPO Debut and Subscription

On September 3, 2024, Premier Energies had an impressive stock market debut. The IPO was offered in a price band of ₹427 to ₹450 per share. The stock debuted at ₹991 on the Bombay Stock Exchange (BSE), a premium of 120.22% on the issue price. On the National Stock Exchange (NSE), too, the shares listed at ₹990, up 120%. On its last day, the IPO received 74.09 times more than its shares available. The ₹28.3 billion IPO comprised a fresh issue of up to ₹12.914 billion and an offer-for-sale of up to 34,200,000 equity shares

Strategic Use of IPO Proceeds

Premier Energies had planned to use ₹9.686 billion from the fresh issue to fund investment in subsidiary Premier Energies Global Environment Pvt Ltd. The investment will be used to partially fund the construction of a 4 GW Solar PV TOPCon Cell and 4 GW Solar PV TOPCon Module manufacturing plant in Hyderabad, Telangana. The balance of the proceeds will be used for general corporate purposes.

Financial Performance

Q3 FY25 results witnessed strong growth. Premier Energies, posted a whopping 490% growth in its consolidated net profit at ₹254.9 crore, against ₹431.5 crore in the year-ago period. Consolidated total income also surged over 144% notched at ₹17,493.8 million. This is against ₹7,147.3 million in the corresponding period last year. The profit margin expanded 4.54% in Q3FY25 vis-a-vis the 6.05% reported in Q3FY24.

Company Profile

Premier Energies has over 29 years of expertise in manufacturing solar cells and modules. The firm has an annual capacity of 2 GW for solar cells and 4.13 MW for solar modules. It has five manufacturing facilities.

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