ACME Photo voltaic IPO Day 3: GMP, subscription standing, evaluate & different key particulars. Apply or not?

The IPO of ACME Photo voltaic Holdings, which opened for bidding on November 6, continued to obtain a lukewarm response from traders on its last day, November 8, with the problem being subscribed solely 0.78 instances as of 11:40 a.m. immediately, in keeping with the newest change information.

Nevertheless, the retail portion of the IPO was oversubscribed 2.40 instances, whereas the Non-Institutional Patrons (NIB) section was subscribed 0.64 instances, and the Certified Institutional Patrons (QIB) section at 0.31 instances.

The value band for the supply is about at ₹275-289 per fairness share, with a face worth of ₹2 every. The corporate’s shares are buying and selling at a zero premium within the gray market on the ultimate day, suggesting that the shares might record on the exchanges on the IPO worth.

The IPO is a book-built subject of ₹2,900 crore, which is a mix of a recent subject of 8.29 crore shares aggregating to ₹2,395 crore and a proposal on the market (OFS) of 1.75 crore shares aggregating to ₹505 crore.

Nuvama Wealth Administration Restricted, ICICI Securities Restricted, JM Monetary Restricted, Kotak Mahindra Capital Firm Restricted, and Motilal Oswal Funding Advisors Restricted are the book-running lead managers of ACME Photo voltaic Holdings IPO, whereas Kfin Applied sciences Restricted is the registrar for the problem.

The allotment for the ACME Photo voltaic Holdings IPO is anticipated to be finalised on Monday, November 11, 2024. The IPO is scheduled to record on each NSE and BSE platforms, with the tentative itemizing date set for Wednesday, November 13, 2024.

The corporate proposes to utilise the web proceeds in the direction of funding for the compensation/prepayment, in full or partly, of sure excellent borrowings availed by the subsidiaries and normal company functions.

Must you apply for ACME Photo voltaic IPO?

Many home brokerage companies have given a ‘Subscribe’ score to ACME Photo voltaic Holdings IPO, citing the corporate’s robust place within the business and its diversified portfolio. Bajaj Capital recommends subscribing with a long-term perspective, whereas BP Equities (BP Wealth) has additionally assigned a ‘Subscribe’ score, highlighting the IPO’s enticing valuation relative to friends.

“The present subject is priced at a P/E ratio of 23.03x on the higher worth band primarily based on FY24 earnings, which is comparatively decrease than its friends. Subsequently, we suggest a subscribe score with a medium- to long-term funding perspective for this subject,” mentioned BP Equities.

Marwadi Shares and Finance additionally rated the IPO as ‘Subscribe,’ emphasising that ACME Photo voltaic Holdings, as a outstanding participant within the renewable vitality sector, is well-positioned to capitalise on business tailwinds within the impartial energy producer (IPP) house. The brokerage famous that the IPO is attractively valued in comparison with its friends.

“Contemplating the TTM-June 24 EPS of ₹10.19 on a post-issue foundation, the corporate is about to record at a P/E of roughly 28x with a market cap of ₹17,486 crore, whereas its peer, Adani Inexperienced Vitality Restricted, is buying and selling at a P/E ratio of roughly 201x,” mentioned Marwadi Shares and Finance.

As well as, SBICAP Securities and Ventura Securities have additionally assigned a ‘Subscribe’ score for the problem.

About ACME Photo voltaic Holdings

The corporate is a number one renewable vitality firm in India, boasting a various portfolio that features photo voltaic, wind, hybrid, and agency and dispatchable renewable vitality (FDRE) tasks. It is likely one of the largest impartial energy producers (IPPs) of renewable vitality in India and ranks among the many prime 10 when it comes to operational capability as of June 30, 2024.

Over time, the corporate has expanded its portfolio from solely solar energy tasks to turn into a complete renewable vitality firm. It develops, constructs, owns, operates, and maintains large-scale renewable vitality tasks via its in-house engineering, procurement, and building (EPC) division and operations and upkeep (O&M) staff.

The corporate generates income by promoting electrical energy to varied clients, together with entities backed by the central and state governments.

Its operational challenge capability consists of 1,340 MW (1,826 MWp) of solar energy tasks. It has an under-construction contracted challenge capability of three,250 MW, comprising 1,500 MW (2,192 MWp) of solar energy tasks, 150 MW of wind energy tasks, 1,030 MW of hybrid tasks, and 570 MW of FDRE tasks, as per the corporate’s DRHP report.