ACME Solar Holdings IPO GMP 5% to 6%.

ACME Solar Holdings IPO is set to be open for bidding with an expected Grey Market Premium (GMP reflecting strong investor interest in the renewable energy sector.

The ACME Solar Holdings IPO aims to raise ₹2,200 crore through a Fresh Issue of equity shares with a face value of ₹10 per share. These funds will enable ACME Solar to scale its operations and reduce debt, positioning it favorably within the growing market for sustainable energy.

Backed by robust industry fundamentals and a diversified project portfolio, the ACME Solar IPO presents an existing opportunity for investors looking to capitalize on India’s solar power potential.

Afcons IPO allotment status

Table of Contents

#1 ACME Solar Holdings IPO Issue details:

ACME Issue details:

Company Name: ACME Solar Holdings Limited
IPO Structure: This is a 100% book-building issue with equity shares priced at a face value of ₹10 per share.
Total Issue Size: Up to ₹2,200 crore.
Lot Size: 51 Shares per lot
Pre-IPO Placement: The company may consider a pre-IPO placement of up to 5,222,079 equity shares to certain investors, raising to ₹500 crore. This will reduce the IPO size proportionately if completed.
Lead Managers: ICICI Securities Limited, Citigroup Global Markets India Private Limited, and Deutsche Equities India Private Limited.

#2 ACME Holdings IPO Key Financial Ratios

RoNW of ACME:

Standalone: 0.63% for the year ended March 31, 2017 and -2.80% for the year ended March 31, 2016
Consolidated: -114.88% for March 31, 2017, and -3.35% for March 31, 2016

Debt-to-equity Ratio:

Standalone: The total borrowings to shareholders’ fund ratio is 23.41 for the standalone financials.
Consolidated: For the consolidated financials, the ratio is significantly higher at 130.37 due to higher debt levels.

Net Asset Value (NAV) per share:

Consolidated NAV: ₹6.58 as of March 31, 2017.
Standalone NAV: ₹12.58 as of March 31, 2017

#3 ACME Solar Holdings IPO GMP and Offer Structure:

ACME Solar Holdings IPO GMP is ₹0 (0%). But, the GMP of ACME IPO will be updated soon.

Offer for Sale (OFS)

Red Herring Prospectus doesn’t explicitly state an offer for sale (OFS) component. It primarily focuses on the issuance of new shares as part of the fresh issue.

Fresh Issue

The company plans a fresh issuance of equity shares with a face value of ₹10 per share, aggregating to a total of up to ₹2,200 crore. This includes any premiums applied above the face value per share.

The Fresh Issue is intended to raise funds directly for ACME Solar Holdings Limited, potentially strengthening the company’s balance sheet, and expanding its project portfolio. Or for other corporate purposes.

Pre-IPO Placement

The company has the option of a pre-IPO placement of up to 5,222.079 equity shares, which could raise an additional ₹500 Crore. If the pre-IPO placement is completed successfully, it will proportionately reduce the total IPO size. However, the final IPO size will not fall below 10% of the post-issue paid-up equity capital.

Use of Proceeds from the Fresh Issue

The funds raised from the fresh issue are expected to be directed toward

Expansion of existing solar projects or development of new ones.
General corporate purposes to support future growth and operational requirements.
Strengthening the company’s financial stability and reducing dependence on external borrowings

#4 The Objectives of the offer

Repayment of existing loans
Funding for the Bhadla Project
General Corporate Purpose.

Repayment of existing loans

The company has taken loans from Piramal Finance, Innovador Traders, and ACME Cleantech, with a portion funded through non-convertible debentures (NCDs) issued to ACME Cleantech.

It plans to use ₹9,71.50 Crore from the IPO proceeds to repay these debts, including up to ₹541 Crore to partially redeem the promoter’s NCDs early (from a total of ₹650 crore outstanding). This repayment will lower the debt, improve the debt-to-equity ratio, and free up internal funds for future business growth.

For funding the Bhadla Project

SECI has awarded the company a 200 MW solar project at Bhadla, Rajasthan, to be developed and operated by its subsidiaries, ACME Jodhpur and ACME Rewa.

Both subsidiaries have signed power purchase agreements with SECI, dated September 26, 2017. The company will handle the engineering, procurement, and construction (EPC), having signed contracts with ACME Jodhpur and ACME Rewa for EPC supply and services.

Approximately ₹869 crore from the IPO proceeds will be invested in ACME Rewa and ACME Jodhpur for this project.

#5 ACME IPO Issue Structure and Allocation

Qualified Institutional Buyers (QIBs): At least 75% of the Issue will be allocated to QIBs.
Non-Institutional Investors (NIIs): Up to 15% of the issue is allocated to NIIs.
Retail Individual Investors (RIIs) Up to 10% of the issue is reserved for retail investors.
Anchor Investor Portion: The company may allocate up to 60% of the QIB portion to anchor investors one working day prior to the IPO opening.

#6 ACME Solar Holdings IPO Pricing and Bidding Information

ACME IPO Price Band is to be determined in consultation with the Book Running Lead Managers (BRLMS) and published in widely circulated national newspapers at least five days prior to the ACME IPO opening.
Retail Discount: A potential discount on the issue price may be offered to retail individual investors.

#7 About ACME Solar Holdings Limited

Industry: Solar Power
Date of Incorporation: June 3, 2015
History: Originally incorporated as a private limited company, later converted to a public limited company in May 2017.
Operations: ACME Solar Holdings Limited focuses on developing solar power projects through long-term power purchase agreements (PPAs) with government entities and public sector undertakings.

Download ACME Solar Holdings IPO Red Herring Prospectus

Check GMP of IPO on gmpipo.com

ACME Solar Holdings IPO final lines

The upcoming ACME Solar Holdings IPO represents a strategic opportunity for investors seeking exposure to India’s renewable energy sector, particularly in solar power, a critical component of the country’s sustainable energy roadmap. By utilizing IPO proceeds to fund project growth and reduce debt, ACME Solar is well-positioned to strengthen its market position and enhance its financial resilience. The ACME Solar Holdings IPO aims to raise ₹2,200 crore through a Fresh Issue of equity shares with a face value of ₹10 per share. No Offer for Sale issue is offered in ACME Solar Holdings IPO. GMP of ACME is now ₹0 (0%), but it may skyrocket after announcing the Offer date, price, etc.

Avishek

Hi, I’m Avishek, a passionate stock market enthusiast turned full-time investor. With my 3+ years of experience in the Indian and Global markets, I’ve developed a keen eye for potential winners. My portfolio includes successful allotments in IPOs from NYKAA, Bajaj Housing Finance, Waaree Energies Ltd, and more. I have never lost money in the stock market. Through this blog, I will provide all the information here.