ACME Solar files working papers for INR 3,000 crore IPO – pv magazine India

July 3, 2024 Uma Gupta

Acme Solar Holdings Ltd is headquartered in Gurugram filed a draft public offering prospectus (DRHP) with market regulator, Securities and Exchange Board of India (SEBI), to raise Rs 3,000 crore ($359.13 million) through an initial public offering (IPO).

“The IPO at a face value of INR 2 per equity share is a combination of fresh issue of shares up to INR 2,000 crore and an offer for sale (OFS) up to INR 1,000 crore by ACME Cleantech Solutions. The offer also includes subscription reservation by eligible employees and a discount is provided to eligible employees bidding under the employee reservation portion,” ACME Solar said.

ACME Solar added that “in consultation with the lead book-running manager, (it may) consider issuance of certain securities up to INR 400 crore as a pre-IPO offering. If such offering is completed, the size of the fresh issue will be reduced.”

The Company intends to use the net proceeds of the new issue of Rs 15 billion to repay/prepay, in full or in part, certain outstanding borrowings of its subsidiaries and for general corporate purposes.

The Offer is being made through a book-building process under which no less than 75% of the net offer will be available for allotment proportionally to qualified institutional buyers, no more than 15% of the net offer will be available for allotment to non-institutional investors and no more than 10% of the net offer will be available for allotment to individual retail investors.

ACME Solar Holdings is one of the largest private sector renewable energy producers in India and ranks among the top ten renewable energy players in the country in terms of operational capacity as of March 31, 2024, as per a CRISIL report. Over the years, it has diversified and expanded its portfolio from solar power projects to an integrated renewable energy company in India.

ACME Solar develops, builds, owns, operates and maintains utility-scale renewable energy projects through its in-house Engineering, Procurement and Construction (EPC) division, as well as its Operations and Maintenance (O&M) team. ACME Solar generates revenue by selling electricity to various offtakers, including central and state government-backed entities.

As of March 31, 2024, ACME Solar had a total operational project capacity of 1,320 MW (1,802 MWp) of solar projects. It also had a contracted under construction project capacity of 1,650 MW, consisting of 1,500 MW (2,192 MWp) of solar projects and 150 MW of wind projects. It also had a committed under construction project capacity of 2,380 MW, consisting of 300 MW of solar projects, 830 MW of hybrid projects and 1,250 MW of FDRE projects.

In May 2024, ACME Solar signed power purchase agreements for two ongoing FDRE projects with a total capacity of 570 MW, increasing the contracted project capacity to 2,220 MW.

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As of March 31, 2024, 18 of the company’s 28 operational projects are located in the states of Andhra Pradesh, Rajasthan and Telangana, accounting for 85.07% of its total operational project capacity.

Acme Solar’s consolidated revenue from operations for fiscal 2024 increased by 1.88% to INR 1,319.25 crore from INR 1,294.90 crore in the previous year. The company moved from a loss in fiscal 2023 to a profit of INR 698.23 crore in fiscal 2024.

Nuvama Wealth Management, ICICI Securities, JM Financial, Kotak Mahindra Capital Co. and Motilal Oswal Investment Advisors are the lead managers for the issue and KFin Technologies is the registrar of the issue.