ACME Solar aims to garner Rs 2,900-crore via IPO; fixes price band at Rs 275-289/share

Renewable energy firm ACME Solar Holdings Ltd on Monday said it has fixed a price band of Rs 275 to Rs 289 per share for its Rs 2,900 crore initial public offering (IPO).

The issue would open on November 6 and conclude on November 8. The bidding for anchor investors would open for a day on November 5, the company announced.

The Gurugram-based company's IPO is a combination of a fresh issue of shares worth Rs 2,395 crore and an offer for sale (OFS) of shares valued at Rs 505 crore by ACME Cleantech Solutions.

ACME Solar Holdings intends to utilise the proceeds from the fresh issuance to the extent of Rs 1,795 crore towards payment of debt and a portion will be used for general corporate purposes.

Over the years, ACME Solar has diversified and expanded its portfolio from solar power projects to becoming an integrated renewable energy company in India.

The company develops, builds, owns, operates and maintains utility-scale renewable energy projects through its in-house engineering, procurement and construction (EPC) division, as well as its operation and maintenance (O&M) team.

ACME Solar generates revenue by selling electricity to various off-takers, including central and state government-backed entities. As of June 2024, 18 out of its 28 operational projects are located in Andhra Pradesh, Rajasthan and Telangana representing 85 per cent of its total operational projects capacity.

It has an aggregate operational project capacity of 1,320 MW of solar power projects. It also had under construction contracted project capacity of 1,650 MW, including 1,500 MW of solar power projects and 150 MW of wind power projects.

On the financial front, ACME Solar's consolidated revenue from operations increased 1.88 per cent to Rs 1,319.25 crore during the fiscal year 2024 from Rs 1,294.90 crore in the previous year.

The company had a turnaround from being a loss-making in FY23 to posting a profit of Rs 698.23 crore in FY24.

The company said that 75 per cent of the issue size has been reserved for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors.

Nuvama Wealth Management, ICICI Securities, JM Financial, Kotak Mahindra Capital Company and Motilal Oswal Investment Advisors are the book-running lead managers, and KFin Technologies is the registrar of the issue.