Premier Energies files IPO papers with Sebi; looks to raise Rs 1,500 crore

NEW DELHI: Solar cell company Premier Energies Ltd has filed preliminary papers with capital markets regulator Sebi to raise funds through an initial public offering (IPO). The Hyderabad-based company's IPO is a combination of a fresh issue of equity shares worth Rs 1,500 crore and an offer for sale (OFS) of up to 2.82 crore shares by a promoter and investors, according to the draft red herring prospectus (DRHP) made public on Saturday.
Under the OFS component, South Asia Growth Fund II Holdings LLC will divest 2.38 crore equity shares, South Asia EBT Trust will divest 1.53 lakh equity shares, and promoter Chiranjeev Singh Saluja will sell 42 lakh equity shares.
The company may consider a pre-IPO placement aggregating up to Rs 300 crore. If such placement is undertaken, the fresh issue size will be reduced.
Proceeds from the fresh issue of Rs 1,168 crore will be used for investing in subsidiary Premier Energies Global Environment Private Ltd, to partially finance the establishment of a 4GW solar PV TOPCon (tunnel oxide passivated contact) cell and 4GW solar PV TOPCon module manufacturing facility in Hyderabad, and the remainder will be allocated towards general corporate purposes.
Founded in 1995, Premier Energies is an integrated solar cell and module manufacturer with a 2GW capacity for cells and 3.36GW for modules.
Additionally, the company offers EPC solutions, O&M (operations & maintenance) services, and operates as an independent power producer (IPO).
It has five manufacturing facilities, including in Hyderabad and Telangana.
As of FY23, its revenue from operations stood at Rs 1,428 crore, and Rs 2,017 crore for the nine months ended December 31, 2023.
The company had an order book of over Rs 5,300 crore as of March this year.
Kotak Mahindra Capital Company Ltd, JP Morgan India Private Ltd 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.