Premier Energies plans IPO to raise ₹1,500 crore

Premier Energies Limited, a leading solar cell and module manufacturer, has filed a draft red herring prospectus (DRHP) with SEBI to raise over ₹1,500 crore through an initial public offering (IPO). Founded by Surender Pal Singh Saluja, the 29-year-old company plans to utilize the proceeds for establishing a 4-GW Solar PV TOPCon Cell and Module manufacturing facility in Hyderabad.

The IPO will include a fresh issue of equity shares worth up to ₹1,500 crore and an offer for sale of up to 2.82 crore shares by the selling shareholders. South Asia Growth Fund II Holdings LLC and other sellers will divest their shares as part of the offer for sale component. Additionally, there is a possibility of a pre-IPO placement of securities for up to ₹300 crore, which could reduce the size of the fresh issue.

Premier Energies, boasting five manufacturing facilities in Hyderabad, has emerged as the largest Indian exporter of solar cells to the United States. The company reported a revenue of ₹1,428 crore in the financial year 2022-23 and generated ₹2,017 crore in revenue for the first nine months of the fiscal year ending December 31, 2023. As of March 15, 2024, the company’s order book stood at ₹5,362 crore.

The public offering by Premier Energies signifies a significant step for the company to enhance its manufacturing capabilities and further expand its presence in the renewable energy sector. Investors will be closely watching the developments surrounding this IPO as the company looks to capitalize on the growing demand for solar energy solutions in the market.