Premier Energies files for IPO to raise more than INR 1,500 crore

Premier Energies Ltd has filed the draft red herring prospectus (DRHP) with capital markets regulator SEBI to raise more than INR 1,500 crore (around $180 million) through an initial public offering (IPO).

The company proposes to utilize the net proceeds of the fresh issue towards investment worth INR 1,168 crore in its arm, Premier Energies Global Environment, for part-financing the establishment of a 4 GW TOPCon solar cell and 4 GW TOPCon solar module manufacturing facility in Hyderabad, Telangana, and the rest towards general corporate purposes.

Premier Energies Ltd is India’s second largest integrated solar cell and solar module manufacturer with an annual installed capacity of 2 GW and 3.36 GW, respectively, as of March 31, 2024, as per a Frost & Sullivan report. The company was established in 1995 by Surender Pal Singh Saluja, chairman and whole-time director.

According to the draft red herring prospectus, the initial public offering of the Hyderabad-based company consists of a fresh issue of equity shares aggregating up to INR 1,500 crore and an offer for sale of up to 2,82,00,000 equity shares by the selling shareholders. Under the offer for sale component, South Asia Growth Fund II Holdings LLC will divest 2,38,46,400 equity shares and South Asia EBT Trust will divest 1,53,600 equity shares and promoter Chiranjeev Singh Saluja will sell 42,00,000 equity shares.

The company, in consultation with the BRLMs, may consider a Pre-IPO placement of specified securities for up to INR 300 crore. If the pre-IPO placement is undertaken, the fresh issue will be reduced to the extent of such pre-IPO placement.

Premier Energies is also into the execution of EPC projects, independent power production, and O&M services. The company has five manufacturing facilities, all of which are situated on the land owned by it in Hyderabad, Telangana. It claims to be the largest Indian exporter of solar cells to the United States (one of the largest markets for solar panels globally) for the nine months ended Dec. 31, 2023.

The company’s revenue from operations increased at a compounded annual growth rate (CAGR) of 42.71% from fiscal 2021 to fiscal 2023. As of Fiscal 2023, its revenue from operations was INR 1,428 crore and INR 2,017 crore for the nine months ended Dec. 31, 2023. As of March 15, 2024, the company had an order book of INR 5,362 crore.

Kotak Mahindra Capital Co. Ltd, J.P. Morgan India and ICICI Securities Ltd are the book running lead managers to the issue. The equity shares are proposed to be listed on BSE and NSE.