Premier Energies IPO- Review, Valuation, Date & GMP

Premier Energies IPO-Complete Overview

Premier Energies IPO a Mainboard IPO is a book-built issue of Rs.2,830.40 crore (62,897,777 Shares) by Premier Energies Ltd. that was founded in April 1995. The company began producing solar panels and integrated solar cells. Cell, Solar Module, Monofacial Modules, Bifacial Modules, EPC Solutions, and O&M Solutions are among the products offered by the company.

The company is based in Hyderabad, Telangana, India, and operates five production facilities. NTPC, TATA Power Solar Systems Limited, Panasonic Life Solutions Private Limited (Panasonic), Continuum, Shakti Pumps, First Energy, Bluepine Energies Private Limited, Luminous, Hartek Solar Private Limited (Hartek), Green Infra Wind Energy Limited (a Sembcorp Green Infra Limited subsidiary), Madhav Infra Projects Limited (Madhav), SolarSquare Energy Private Limited (SolarSquare), and Axitec Energy India Private Limited (Axitec).

The corporation had a Rs.59,265.65 million order book as of July 31, 2024. This total comprised Rs.2,122.72 million for EPC projects, Rs.16,091.14 million for non-DCR solar modules, Rs.22,140.60 million for DCR solar modules, and Rs.18,911.18 million for solar cells.

The United States, Hong Kong, South Africa, Bangladesh, Norway, Nepal, France, Malaysia, Canada, Sri Lanka, Germany, Hungary, United Arab Emirates, Uganda, Turkey, South Korea, China, Taiwan, and the Philippines are among the countries to which the company has exported its goods.

Its new IPO is to be launched on 27 August 2024, and its ‘initial public offering’ will end on 29 August 2024.

Premier Energies IPO Overview

The Rs.2,830.40 crore Premier Energies Ltd. IPO comprises a fresh issue of 2.87 crore Shares worth Rs.1,291.40 crore and an offer for sale (OFS) of 3.42 crore Shares amounting to Rs.1,539 crore out of which 35% is allocated to retail investors, 50% to institutional investors and 15% to non-institutional investors. 

The IPO date is from August 27 to August 29, 2024. The IPO listing is on Tuesday, September 03, 2024, and it will be held on the BSE and NSE. Premier Energies IPO price band is between Rs.427 to Rs.450 for each Share.

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

Company Financial

Below is the synopsis of the company's financial data for the financial year that concluded on 30 June 2024.The total assets of the company are Rs.3,735.5 crore.

• The company’s total revenue is over Rs.1,668.79 crore.

• The company’s PAT is Rs.198.16 crore.

• The net worth of the company is Rs.26.96 crore.

• The company's EBITDA is Rs.112.88 crore.

(Amount in Crore)

Revenue Bifurcation

Below is the revenue breakdown for various activities.

(Amount in Million)

Segment-wise Revenue Bifurcation For The Last Three Fiscals.

(Values in Million)

Geography-wise Revenue Bifurcation For The Last Three Fiscals.

(Values in Million)

The Objective of The Issue

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

• The purpose of the investment is to partially finance the construction of a 4 GW Solar PV TOPCon Cell and 4 GW Solar PV TOPCon Module manufacturing facility in Hyderabad, Telangana, India, through the subsidiary Premier Energies Global Environment Private Limited (the Project).

• General Corporate Purposes.
  
  

Peers of Premier Energies Ltd.

Evaluation

The Premier Energies IPO price is between Rs.427 to Rs.450 for each Share.

 Evaluation of P/E Ratio

Considering the FY 2024, with an EPS of Rs.6.93 from the last year, the resulting P/E ratio is 64.93x.

Considering the weighted EPS of Rs.3.27 for the last three years, the P/E ratio is 137.61x.

Comparative Analysis with Listed Peers

The average P/E Ratio of the industry is 58.6.

IPO's Strengths 

• It is a manufacturer of integrated solar cells and solar modules with a long history in the solar module manufacturing industry.

• Expertise in producing solar cell lines.

• It has a strong order book and a diverse customer base that includes partnerships with clients in India and beyond.

• The top management team, led by an experienced promoter, is strong. 

IPO’s Weaknesses 

• Its manufacturing facilities are situated in the Indian state of Telangana, which puts the operations at risk for geographical concentration due to local and regional variables that could negatively impact its business, operations results, and cash flows.

• In Fiscals 2022 and 2023, it lost Rs.144.08 million and Rs.133.36 million, respectively. Future losses of a similar nature could harm its operations, cash flows, and financial situation.

• In the last three FYs and the three months that concluded on June 30, 2024, the majority of its subsidiaries have experienced losses at some point. Should these losses recur in the future, it could harm its cash flows, company, and financial situation.

• The company may experience negative cash flows in the future. In Fiscal 2023, it had negative cash flows of Rs.155.29 million, and in the three months that concluded on June 30, 2024, of Rs.410.48 million. 

Premier Energies IPO GMP Today

Its IPO GMP today is Rs.280 as of 23 August 2024. With a price band of Rs.450, the Premier Energies IPO's listing price (estimated) is Rs.730.

Premier Energies IPO timetable (Tentative)

The IPO is scheduled from August 27 to August 29, 2024, with IPO allotment on August 30, 2024, refund initiation on September 02, 2024, and listing on September 03, 2024.

Premier Energies IPO Details 

The IPO with a face value of Rs.1 per Share is set to start on August 27, 2024, close on August 29, 2024, and offers a total issue size of 62,897,777 Shares between Rs.427 to Rs.450 per Share with a Lot size of 33 Shares and will be listed at BSE and NSE.

Premier Energies IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (33 Shares) amounting to Rs.14,850, and 13 Lots (429 Shares) amounting to Rs.193,050 respectively, while for HNI investors, the minimum Lot is 14 (462 Shares) amounting to Rs.207,900.

Premier Energies IPO Reservation

Promoters and Management of Premier Energies Ltd. 

• Surender Pal Singh Saluja 

• Chiranjeev Singh Saluja
  
  

Premier Energies IPO Lead Managers

• Kotak Mahindra Capital Company Limited

• J.P. Morgan India Private Limited

• ICICI Securities Limited
  
  

Dividend Policy

The company has not paid any dividends in the last three fiscals.

Conclusion

The company has experienced negative cash flow in investing activities and financing activities in the last few fiscal years. To fulfill its objectives, the company is currently conducting an IPO for the public.

We believe the information offered in this blog helps you learn about the company's financial performance. So this blog will be very useful to you if you are looking for information about the approaching IPO since it will give you reliable information about the company's, insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

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: This IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

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