ACME Solar Holdings IPO: Price Range, GMP, Dates, Among 10 Things You Need to Know Before Subscribing to the Issue

The initial public offering (IPO) of ACME Solar Holdings Limited will open for public subscription on Wednesday, November 6 and close on Friday, November 8. The renewable energy producer has set the price range for the IPO at a range of ₹275 to ₹289 per equity share of par value ₹2 per share.

The renewable energy company produces electricity from both solar and wind energy projects in India. ACME Solar specializes in the development, construction, ownership, operation and maintenance of large-scale sustainable energy projects. They earn from selling electricity to various customers, including plants supported by the central and state governments.

ACME Solar aims for an increase ₹2,900 crore from a new issue of ₹2,395 crore and an offer for sale (OFS) of shares worth ₹505 crore by the company’s promoter ACME Cleantech Solutions Private Ltd.

ACME Solar Holdings IPO – 10 things to know

1. Scope of the ACME Solar Holdings IPO: The Gurugram-based renewable electricity producer wants to increase output ₹2,900 crore through a fresh issue and an offer-for-sale (OFS) component of equity shares of face value ₹2 per share. The lot size of the issue is 51 shares, and in multiples of 51 shares thereafter.

2. ACME Solar Holdings IPO Issuance Dates: The IPO will open for public subscription on Wednesday, November 6 and close on Friday, November 8.

3. Date of IPO of ACME Solar Holdings: The IPO is tentatively expected to be allocated on Monday, November 11. The shares are likely to be listed on the NSE and BSE on Wednesday, November 13.

4. ACME Solar Holdings IPO Anchor Round: The anchor round of the sustainable energy company will take place on Tuesday, November 5.

5. ACME Solar Holdings IPO Price Range: The company has set the price range for the public issue at a range of ₹275 to ₹289 per share with a nominal value of ₹2 per treasury share.

6. ACME Solar Holdings IPO Allocation Basis: The public offer includes a new issue of shares worth ₹2,395 and an offer-for-sale (OFS) of shares worth ₹505 crore by the promoter selling shareholding, ACME Cleantech Solutions Private Ltd.

7. ACME Solar Holdings IPO caveat: In the public issue, not less than 75 percent of the shares in the public issue are reserved for qualified institutional buyers (QIB), not more than 15 percent for non-institutional institutional investors (NII), and not more than 10 percent for the private investor. The employee portion is reserved for shares with a total of maximum ₹10 crores.

8. ACME Solar Holdings IPO Target: The company aims to use the funds raised from the public offering to repay or prepay outstanding loans obtained by the subsidiaries, in whole or in part, and for general corporate needs, as indicated in the draft documents.

9. ACME Solar Holdings IPO GMP: Today’s gray market premium (GMP) for the IPO is ₹30. With the upper price range on ₹289, the public issue is estimated to be listed at ₹319, an increase of 10.38 percent, according to Investorgain.com.

The gray market premium is an investor’s willingness to pay more for a public offering.

10. Merchant Banker and Registrar of ACME Solar Holdings IPO: Nuvama Wealth Management Ltd, ICICI Securities Ltd, JM Financial Ltd, Kotak Mahindra Capital Company Ltd and Motilal Oswal Investment Advisors Ltd are the bookrunners for the IPO of ACME Solar Holdings, with Kfin Technologies Ltd acting as registrar for the offering.