ACME Solar Holdings Limited is set to launch its IPO, aiming to raise approximately ₹2,900 crore to fund its growth in the renewable energy sector. Established in 2015, the company has emerged as one of India’s largest independent power producers, specializing in solar, wind, and hybrid energy projects. With an operational capacity of 1,320 MW and a robust pipeline of under-construction projects totaling 2,220 MW, ACME Solar is well-positioned to capitalize on the increasing demand for clean energy solutions in India.
The IPO will consist of a fresh issuance of equity shares worth ₹2,395 crore and an offer-for-sale of ₹505 crore. The proceeds will primarily be used for debt repayment and general corporate purposes. Despite recent fluctuations in profitability, including a consolidated profit of ₹697.8 crore for FY24 compared to a loss the previous year, ACME Solar’s established presence and long-term contracts with government-backed entities provide a solid foundation for future growth.
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Expert Opinions
The ACME Solar Holdings IPO is generating positive market sentiment, driven by the company’s strong position as one of India’s largest independent power producers in the renewable energy sector. With an operational capacity of 1,320 MW and a significant pipeline of projects, ACME Solar demonstrates substantial strengths in its diversified portfolio of solar, wind, and hybrid energy solutions, bolstered by long-term power purchase agreements with government-backed entities.
However, investors should be aware of potential risks and challenges, including reliance on government policies and incentives, which could impact profitability. The company also faces revenue concentration, with 89.97% derived from its top ten off-takers. In terms of valuation analysis, the IPO aims to raise ₹2,900 crore, with proceeds primarily allocated for debt repayment and corporate purposes. The long-term investment perspective appears promising, as the ongoing global shift towards renewable energy positions ACME Solar to benefit from increasing demand for clean energy solutions in India, making it an attractive option for investors focused on sustainability.
Investor Considerations
Investors considering the ACME Solar Holdings IPO should assess several critical factors. The company performance and fundamentals reflect a robust operational capacity of 1,320 MW, with a significant pipeline of projects totaling 2,220 MW under construction. For the fiscal year ending March 31, 2024, ACME Solar reported impressive revenue growth, indicating strong demand for its renewable energy solutions. The sector outlook is highly favorable, as India aims to achieve 500 GW of renewable energy capacity by 2030, driven by government initiatives and increasing investments in clean energy.
The IPO valuation, estimated to raise ₹2,900 crore, includes a fresh issue and offer-for-sale components aimed at debt repayment and corporate purposes. Growth prospects remain strong due to ACME’s diverse portfolio across solar, wind, and hybrid technologies. However, potential risk factors include reliance on government policies and competitive bidding for projects. A long-term investment horizon is advisable, as the renewable energy sector is poised for significant expansion, positioning ACME Solar as a compelling investment opportunity.
| Date | GMP | Trend |
|---|---|---|
| 12 Nov 2024 10.17 | ₹00 | --- |
| 11 Nov 2024 11.19 | ₹00 | --- |
| 10 Nov 2024 12.35 | ₹00 | --- |
| 09 Nov 2024 11.12 | ₹00 | --- |
| 08 Nov 2024 10.47 | ₹00 | Down |
| 07 Nov 2024 10.19 | ₹5 | Down |
| 06 Nov 2024 10.53 | ₹10 | Down |
| 05 Nov 2024 12.01 | ₹30 | --- |
| 04 Nov 2024 10.42 | ₹30 | Up |
| 31 Oct 2024 13.45 | ₹00 | --- |
FAQs
The Grey Market Premium showed moderate accuracy in predicting ACME Solar Holdings’ listing sentiment, though missed the magnitude. While the GMP of ₹0 suggested weak market enthusiasm with a flat listing, the stock actually listed at a significant discount of 13.15%. With a prediction error of 13.15%, the GMP correctly indicated negative market sentiment but failed to capture the full extent of the downside, demonstrating partial reliability as a sentiment indicator in this case.
ACME Solar Holdings IPO Current GMP is ₹00.
ACME Solar Holdings IPO Expected Returns is 0.00%.
ACME Solar Holdings IPO estimated listing price is ₹289.