ACME Solar Holdings' Rs 2,900-crore IPO to close on Friday: Key things to know about public offer priced at Rs 275-289

ACME Solar Holdings IPO: ACME Solar Holdings' initial public offer (IPO), estimated to be worth Rs 2,900 crore, is set to enter the last day of bidding on Friday, November 8. The IPO of ACME Solar Holdings, a Gurugram-headquartered renewable energy company, is a combination of fresh issuance of shares worth up to Rs 2,395 crore and an offer for sale (OFS) aggregating up to Rs 505 crore by existing shareholders. The IPO-bound ACME Solar Holdings has established itself as an integrated renewable energy company in the country. 

Here's everything you need to know about the ACME Solar IPO: 

ACME Solar IPO Subscription Update

By 4:18 pm on Thursday, the second day of the three-day bidding process, ACME Solar Holdings' IPO received bids for 3.88 crore shares against the 5.82 crore shares on offer, translating to a subscription of 66.7 per cent, according to provisional exchange data.

ACME Solar Holdings IPO | Issue price & lot size

Under the IPO, ACME Solar Holdings shares are available for bidding in a price range of Rs 275-289 per unit in multiples of 51 shares. 

This translates to Rs 14,025-14,739 per lot.

In other words, potential investors will have to shell out up to Rs 14,739 per lot for bidding.   

ACME Solar Holdings IPO | Listing date

The basis of allotment for the IPO is likely to be finalised on November 11.

The ACME Solar Holdings stock will be listed on bourses BSE and NSE tentatively on November 13. 

ACME Solar Holdings IPO | Objective

According to ACME Solar's red herring prospectus (RHP), the company aims to utilise the proceeds from the fresh portion towards clearing or reducing certain borrowings availed by its subsidiaries and for general corporate purposes.

ACME Solar Holdings IPO | Should you subscribe to it?

Bajaj Broking recommends subscribing to the issue for the long term. 

The brokerage believes the issue is aggressively priced. 

The asking price translates to a a price-to-earnings ratio of 25.06 based on ACME Solar Holdings' earnings for FY24, which looked like an exceptional year for the company, according to Bajaj Broking.

"However, the company has shown inconsistent top and bottom lines over the reported periods. Its debt-to-equity ratio of 3.89, as of June 30, 2024, is notably high and raises concerns," according to the brokerage. 

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