ACMP solar IPO is launching on 6th november, through this initial public offerings company aimed to raise 2900 Crore for its fianancial and expansion needs.
ACME Solar Holdings Limited – Overview
ACME Solar Holdings, part of the larger ACME Group, is one of India’s leading renewable energy companies, primarily focused on utility-scale solar power. Established to address the growing demand for green energy, ACME Solar has developed, built, and maintained large-scale projects across several states, including Andhra Pradesh and Rajasthan. The company follows an integrated model where it designs, constructs, and operates solar plants, ensuring optimal efficiency and energy output. This setup has made ACME Solar a valuable player, consistently recognized among India’s top 10 renewable energy producers.
ACME Solar Holdings Parent Company – ACME Cleantech Solutions
ACME Solar Holdings has its roots deeply intertwined with ACME Cleantech Solutions, which is its parent company and largest shareholder. This partnership has been pivotal in ACME Solar’s journey as a prominent player in India’s renewable energy landscape, focusing primarily on solar and wind energy projects.
ACME Solar Holdings IPO GMP
While the official GMP for ACME Solar’s IPO is Trading at 30 at present.,
market insiders are optimistic, citing the company’s recent turnaround and stable growth as strong selling points. This expectation for high demand suggests that a positive GMP may emerge closer to the launch date.
ACME Solar Holdings IPO Details
ACME Solar’s IPO is set to raise ₹2900 crore through a mix of a fresh issue and an offer for sale (OFS) by its parent company, ACME Cleantech Solutions. ACME solar holdings ipo price band is 275-289.
IPO Details
| Category | Details |
|---|---|
| Total IPO Size | ₹2900 crore |
| Fresh Issue | ₹2395 crore |
| Price Band | ₹275-289 Rupee |
| Offer for Sale (OFS) | ₹505 crore |
| Utilization of Funds |
– Repayment of debt: ₹1,500 crore – General corporate purposes: ₹500 crore |
The fresh issue proceeds are intended to strengthen the company’s financials, with ₹1,500 crore dedicated to repaying loans and the remaining for other corporate needs.
ACME Solar Holdings IPO DRHP PDF
ACME Solar Holdings IPO Date
IPO Event Dates
| Event | Date |
|---|---|
| IPO Opening Date | November 6, 2024 |
| IPO Closing Date | November 8, 2024 |
| Basis of Allotment Date | November 11, 2024 |
| Refunds Initiation Date | November 12, 2024 |
| Shares Credited to Demat | November 12, 2024 |
| IPO Listing Date | November 13, 2024 |
ACME Solar Holdings IPO Investor Quota
The IPO dates are yet to be officially confirmed, pending regulatory approvals. Here’s how the quotas are expected to be divided:
IPO Quota Percentage
| Category | Quota Percentage |
|---|---|
| Qualified Institutional Buyers (QIBs) | 75% |
| Non-Institutional Investors (NIIs) | 15% |
| Retail Individual Investors (RIIs) | 10% |
Additionally, the IPO offers a reserved allocation for ACME employees, with a discount on shares as an incentive for eligible staff.
Financial Performance (Past Three Years)
Here’s an overview of ACME Solar’s recent financial performance, highlighting its growth and recovery in profitability:
Financial Performance Overview
| Year | Revenue (₹ crore) | Net Profit (₹ crore) |
|---|---|---|
| FY 2022 | 1,487.9 | 62 |
| FY 2023 | 1,294.9 | -3.17 |
| FY 2024 | 1,919.25 | 689 |
After consecutive years of net losses, ACME Solar reported a strong profit of ₹698.22 crore in FY 2024, reflecting improved operational efficiency and cost management.
Key Performance Indicators (KPIs)
ACME Solar’s growth is also measurable by key metrics used widely in the renewable energy sector:
KPI Overview
| KPI | Description |
|---|---|
| Operational Capacity | 1,320 MW |
| Projects Under Construction | 2,220 MW, including wind and solar |
| Revenue from Renewables | Major source of income |
These KPIs illustrate ACME’s expansion in both solar and hybrid projects, showcasing its adaptability and commitment to green energy goals.
Peer Comparison
When it comes to industry competition, ACME Solar competes with major players like ReNew Power and Adani Green Energy. Although Adani has a larger portfolio, ACME’s financial stability and strategic growth have made it a resilient and competitive choice in the renewable sector. Here’s a quick look at the comparative landscape:
Company Overview
| Company | Operational Capacity (MW) | Financial Strength |
|---|---|---|
| ACME Solar | 1,320 MW | Profitable FY 2024 |
| ReNew Power | 1,700+ MW | Large portfolio, varied energy |
| Adani Green | 5,000+ MW | Extensive footprint, high debt |
Promoter Holdings and Management
ACME Solar is backed by ACME Cleantech Solutions, the parent company founded by Manoj Kumar Upadhyay. Following the IPO, the promoter stake will reduce due to the OFS component, allowing investors to become part of ACME’s growth journey.
ACME Solar Holdings IPO Major Risk
Investing in the ACME Solar Holdings IPO presents some important risks that every potential investor should consider:
- Reliance on Government Policy: ACME Solar’s growth is closely tied to government incentives and policies that support renewable energy. However, these policies can change with new administrations or shifts in priorities. If subsidies are reduced or policies become less favorable, it could slow down ACME’s expansion or make projects less profitable​.
- Tariff Variability: Solar power tariffs are not fixed, and they tend to fluctuate, which affects how much the company can earn from long-term contracts (PPAs). If tariffs fall, or if previously agreed contracts get renegotiated, ACME could see a drop in expected revenues​.
- Project Execution Hurdles: ACME Solar has a lot of projects in progress, and with them come typical construction challenges delays, supply issues, rising costs, and more. Any delays or budget overruns could impact their timeline and financial outcomes​.
- Competitive Pressure: The renewable energy sector in India is booming, with a growing number of domestic and international players entering the market. This can lead to tougher competition, which could drive prices down and potentially reduce ACME’s market share in the long term.
For a detailed breakdown and insights on ACME Solar’s IPO, you might find resources like those on Bajaj Broking and Angel One valuable. These sources delve deeper into the company’s strategy and financials.
TOP FAQ
1. What is the ACME Solar Holdings IPO size?
- The IPO aims to raise ₹2,900 crore, consisting of a ₹2,000 crore fresh issue and a ₹1,000 crore offer-for-sale.
2. What is the ACME Solar Holdings IPO date?
- The IPO will open on November 6, 2024, and close on November 8, 2024. Listing is anticipated for November 13, 2024​.
3. What is the price band for the IPO?
- The price band has not been officially set, but will be updated closer to the opening date​.
4. What is the GMP (Grey Market Premium) today?
- Current GMP stands around ₹30, subject to change based on demand and market sentiment​.
5. What is the lot size for retail investors?
- Retail investors can bid for a minimum of 1 lot, which requires an investment around ₹14,850 (price pending). The maximum lot limit is up to 13 lots​.
6. Who are the promoters and lead managers?
- Promoters include Mamta Upadhyay, ACME Cleantech Solutions, and the Upadhyay Family Trust. Lead managers include ICICI Securities, Kotak Mahindra Capital, JM Financial, Nuvama Wealth, and Motilal Oswal