Considering the upper price band of Rs 289, the current GMP indicates a negative premium over the issue price.
However, it is important to note that grey market premiums are just an indicator as to how the company’s shares are stacked up in the unlisted market and are subject to change rapidly.
Acme operates in a promising sector with a focus on renewable energy sources. The company has demonstrated strong growth and improved profitability in recent times. However, analysts said the high debt-to-equity ratio remains a concern.
“The IPO’s valuation appears reasonable, but the current market sentiment and the company’s historical financial performance may influence the listing outcome,” said Shivani Nyati, Head of Wealth, Swastika Investmart.
The IPO of Acme Solar Holdings received decent response from investors with an overall subscription of just nearly 3 times at close.Also Read: Vodafone Idea Q2 Preview: Losses to narrow; ARPU to improve on tariff hikes
The company proposes to utilise the net proceeds from the issue towards funding the repayment/prepayment of certain outstanding borrowings and other general corporate purposes. The proceeds from the OFS component will be received by the promoter-selling shareholder.
Acme Solar Holdings is an Indian electricity producer established in June 2015, focussing on renewable energy sources. The company aims to advance clean energy solutions in India, contributing to the goal of achieving net zero emissions. It specialises in innovative green technologies, including the production of green ammonia.
The company has demonstrated impressive financial growth. For the fiscal year ending 31 March 2024, the company reported revenue from operations of Rs 470.84 crore, up from Rs 468.59 crore in FY23. The profit after tax was Rs 419.56 crore, against a net loss of Rs 30.5 crore in FY23.
Nuvama Wealth Management, ICICI Securities, JM Financial, Kotak Mahindra Capital Company and Motilal Oswal Investment Advisors acted as the book-running lead managers (BRLM) to the issue.
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