Premier Energies IPO Oversubscribed by 6.60 Times Amid Strong Investor Demand

Premier Energies' initial public offering (IPO) saw a strong investor response, with subscriptions reaching 6.60 times the shares on offer. Non-institutional investors subscribed 18.83 times, while retail investors showed 4.21 times interest. The company aims to raise Rs 2,830 crore for expansion and corporate purposes.

The initial public offering (IPO) of solar cell and module manufacturer Premier Energies garnered an overwhelming response, receiving 6.60 times subscription by the end of the second day of bidding on Wednesday.

The Rs 2,830-crore IPO attracted bids for 29,48,45,364 shares against the 4,46,40,825 shares on offer, according to data from the NSE. In detail, the non-institutional investors' segment saw 18.83 times subscription, retail individual investors (RIIs) category received 4.21 times interest, while the segment for Qualified Institutional Buyers (QIBs) was subscribed 1.40 times.

Fully subscribed on its first day, Premier Energies' IPO includes a fresh issue worth Rs 1,291.4 crore and an offer-for-sale comprising 3,42,00,000 equity shares. The price band for the offer is set at Rs 427-450 per share. Premier Energies plans to use Rs 968.6 crore from the fresh issue for investing in its subsidiary, Premier Energies Global Environment Pvt Ltd, to partially finance a new 4 GW Solar PV TOPCon Cell and Module manufacturing facility in Hyderabad, Telangana. Remaining funds will support general corporate needs.

Premier Energies, with 29 years of experience, operates five manufacturing units and boasts an annual capacity of 2 GW for solar cells and 4.13 GW for solar modules. Kotak Mahindra Capital Company, J.P. Morgan India, and ICICI Securities are the lead managers for the IPO.

(With inputs from agencies.)