ACME Solar Holdings IPO: Public Issue To Open For Subscription Tomorrow; How To Check Status, GMP?

ACME Solar Holdings Limited, one of India's leading renewable energy players, is set to launch its highly anticipated initial public offering (IPO) on Wednesday, November 6. The company aims to raise Rs 2,900 crore through this offering, combining both a fresh issue and an offer for sale (OFS). The issue will remain open till November 8.

IPO Price Band, Allotment, and Listing Dates

ACME Solar's IPO price band has been set between Rs 275 and Rs 289 per share. Following the close of the subscription period, the company is scheduled to finalize share allotments by November 11. Shares are expected to list on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on November 13.

Grey Market Premium (GMP)

Ahead of its official debut, ACME Solar's shares have generated excitement in the grey market, where they are currently trading at a 9.8% premium over the IPO's upper price band of Rs 289. The grey market premium (GMP) is often viewed as an indicator of the demand and sentiment surrounding an IPO, though it is unofficial and unregulated.

ACME Solar's Operations and Objectives

ACME Solar Holdings stands out as a key player in India's renewable energy industry, with a focus on generating electricity through large-scale wind and solar projects. The company generates revenue primarily by supplying electricity to state and central government-supported entities, which provides stable, long-term revenue streams. ACME Solar is not only involved in developing and constructing these renewable energy projects but also actively manages and operates them.

The IPO proceeds are earmarked for two main objectives: debt reduction and corporate funding. A substantial portion will go towards repaying loans incurred by ACME's subsidiaries, a move that will likely improve the company's financial stability and reduce interest expenses. Additionally, part of the funds will support general corporate operations, ensuring that ACME has the financial flexibility to pursue new projects and expand its operational capabilities.

Investment Details

ACME Solar's IPO offers attractive entry points for retail and non-institutional investors (NIIs). Retail investors can participate with a minimum application of 51 shares, equating to an investment of Rs 14,739 at the upper price band of Rs 289. For non-institutional investors, the minimum investment requirements vary. Small NIIs are expected to invest at least Rs 2,06,346, while large NIIs need a minimum investment of Rs 10,02,252. This tiered investment structure allows a diverse range of investors to participate based on their financial capacities.

Lead Managers and Registrar

A robust team of financial experts is overseeing ACME Solar's IPO, led by prominent book-running managers including Nuvama Wealth Management, ICICI Securities, JM Financial, Kotak Mahindra Capital Company, and Motilal Oswal Investment Advisors. Kfin Technologies will serve as the registrar, managing allotment and administrative processes.

ACME Solar's IPO comes at a time when India is intensifying its focus on sustainable energy to reduce dependence on fossil fuels and meet climate goals. ACME Solar, with its extensive portfolio and operational expertise, is well-positioned to contribute significantly to India's green energy targets. The funds raised will not only support ACME Solar's financial health but will also enable the company to scale operations, potentially adding more renewable energy capacity across the country.