ACME Solar IPO: price, date, allotment, GMP details

ACME Solar IPO-Complete Overview

ACME Solar IPO a Mainboard IPO is a book-built issue of RS.2900 crore (10,03,46,022) by Acme Solar Holdings Pvt ltd which was founded in June 2015 as a power producer. It is one of the foremost producers of electricity derived from wind and solar energy among Indian companies.

The company focuses on the development, construction, ownership, operation, and maintenance of large renewable energy projects. This is done in addition to the attached engineering, procurement, and construction (EPC) division and the operation and maintenance (O&M) work. Revenue is then derived from the sale of electricity to various off-takers including central and state government-backed entities.

As of the 31st March 2024, the company had a total operational project capacity of 1320 MW (1802 MWp) in solar power projects. In addition, the company had a contracted project capacity of 1650 MW which was under construction consisting of 1500 MW (2192 MWp) solar power projects and 150 MW of wind power projects. Also, the under-construction awarded project capacity was 2380 MW comprising 300 MW solar power projects, 830 MW hybrid power projects, and 1250 MW FDRE power projects.

Its two companies are ACME Cleantech and ACME Solar Energy.

This new IPO is to be launched on November 06, and the initial public offering of this upcoming IPO will end on November 08, 2024.

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ACME Solar IPO Details

The Rs.2900 crore ACME Solar Holdings IPO comprises a fresh Issue of 8.29 crore Shares (Rs.2395 Cr) and an offer for sale (OFS) of 1.75 crore Shares (Rs.505 Cr) and it will be listed at BSE and NSE. 

acme solar holdings share price- Rs.275 to Rs.289

If You want to apply for the IPO, Click Here to Open a Demat Account.

Company Financial

The company’s revenue climbed by 7.71% and PAT grew by 22084.28% between FYs ended 31 March 2024 and 31 March 2023.

(Amount in Crore)

 

Revenue Bifurcation

Below is the revenue breakdown for various activities.

(Amount in million)

 

Revenue Bifurcation 

(Values in millions)

 

Revenue from Operations Bifurcation 

(Values in millions)

 

 

IPO Objective

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Full or partial repayment of some outstanding loans that our subsidiaries have taken out

• General Corporate purposes.

 

• Peers of ACME Solar Ltd.

Evaluation

Acme Solar Holdings Limited IPO price is between Rs.275 and Rs.289 for each Share.

Evaluation of P/E Ratio

Considering the period of FY 2024, with an EPS of Rs.12.55 from the last year, the resulting P/E ratio is  23.02x.

Considering the weighted EPS of Rs.6.44 for the last three years, the P/E ratio is  44.87x.

Comparative Analysis with Listed Peers

The average P/E Ratio of the industry is 170.3x.

 

 In simple words, the P/E ratio of this IPO (23.02x), compared with the industry’s average P/E of 170.3x, has an undervaluation (on a P/E ratio basis only). Hence the price of the Share seems fully priced for the investors when considered based on the average P/E ratio of the industry.

 

IPO's 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.

 

IPO’s Weaknesses 

• 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 GMP

IPO GMP today is NA.

ACME Solar Limited IPO Timetable (Tentative)

The ACME IPO date is from 06 November to 08 November, with IPO allotment on 11 November, refund initiation on 12 November, and listing on 13 November 2024.

 

IPO Details 

The IPO with a face value of Rs.2 per Share offers a total issue size of 10,03,46,022 Shares and will be listed at BSE and NSE.

IPO ACME Solar Lot Size

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (51 Shares) amounting to Rs.14,739 and 13 Lots (663 Shares) amounting to Rs.1,91,607 respectively, while for HNI investors, the minimum Lot is 14 (714 Shares) amounting to Rs.2,06,346.

 

ACME Solar IPO Reservation

Promoters and Management of ACME Solar Ltd. 

• Mamta Upadhyay

• Manoj Kumar Upadhyay

• ACME Cleantech Solutions Private Limited

• MKU Holdings Private Limited

• Upadhyay Family Trust.

 

ACME Solar IPO Lead Managers

• Nuvama Wealth Management Limited

• ICICI Securities Limited

• JM Financial Limited

• Kotak Mahindra Capital Company Limited

• Motilal Oswal Investment Advisors Limited

 

Dividend Policy

No dividends paid by the company in the last three fiscal.

 

Conclusion

This is ACME Solar's IPO to investors in one of India's leading renewable energy companies that also leads the charge in solar and wind power. A few large customers that lead to some dependency in this space might deter diversified portfolios and the project-integrated approach as positive attributes. It has been planning to list the issued equity shares on both BSE and NSE and raise funds to service debts and for general corporate purposes. Investors interested in India's renewable energy sector might find this a good opportunity in ACME Solar.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

DISCLAIMER: The content is purely for educational and information purposes only. We do NOT encourage/advise/suggest our active readers to be involved in any kind of buying or selling securities activities. Always consult your eligible financial advisor for investment-related decisions. The author does NOT through this blog intend to involve readers in trading.  

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