Indian renewable energy company ACME Solar announces Rs 3,000 crore IPO

(MENAFN-KNN India)
New Delhi, July 4 (KNN) ACME Solar Holdings has filed for an initial public offering (IPO) seeking to raise Rs 3,000 crore (approximately Rs 360 million), a significant step underlining the growing momentum in India’s renewable energy sector.

The development, disclosed in draft documents filed on Wednesday, marks a watershed moment for the company and the broader green energy sector in India.

ACME Solar, a key player in solar and wind power projects, plans to issue fresh shares worth up to Rs 2,000 crore. At the same time, its largest shareholder, ACME Cleantech Solutions, will offer shares worth up to Rs 1,000 crore through an IPO structure.

The company plans to use the proceeds from the fresh issue of shares primarily to reduce its debt. ACME Solar reported annual borrowings of Rs 8,217 crore in March 2023, down 5% from a year earlier.

The initial public offering comes at a time when India’s renewable energy sector is experiencing rapid growth, driven by ambitious domestic targets.

According to Moody’s Ratings, India is expected to invest about $385 billion to achieve its target of 500 gigawatts of renewable energy capacity by 2030.

ACME Solar’s financials are solid. In the last fiscal year, the company posted a profit of Rs 698 crore, resulting in a 2 percent increase in revenue.

The IPO transaction will be led by a consortium of leading financial institutions, including Nuvama, ICICI Securities, JM Financial, Kotak Investment Banking and Motilal Oswal Investment Banking, acting as book-running managers.

The offering is expected to generate significant investor interest given the current bullish trend in the Indian IPO market and the growing interest in sustainable energy investments globally.

(KNN Office)

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