ACME Solar to Raise $337 Million Through IPO


As expected, ACME Solar Holdings has filed a draft red herring prospectus with Securities and Exchange Board of India (SEBI) for a ₹22,000 million (~$336.86 million) IPO at a face value of ₹10 (~$0.15) per share. ICICI Securities, Citigroup Global Markets India, Deutsche Equities India and Link Intime India Private Limited will be managing ACME’s IPO.

The company has not yet disclosed the number of shares that will be up for grabs on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

When contacted an ACME executive said, “all the information is provided in the company release, we are awaiting approval for pre-IPO after which we can ascertain the number of equity shares.”

ACME is considering a Pre-IPO placement of up to 5,222,079 equity shares to certain investors for an amount not exceeding ₹5,000 million (~$76.56 million). The pre-IPO Placement will be at the discretion of ACME and at a price to be determined by it, subject to approval of shareholders.

The promoters, Manoj Kumar Upadhyay and ACME Cleantech Solutions Private Limited, have provided the aggregate of 20 percent of the fully diluted post-issue equity share capital of the company held by them towards minimum promoters’ contribution which has been locked-in for a period of three years from the date of allotment.

According to Mercom’s India Solar Project Tracker, ACME has installed solar projects totaling 794 MW and has 990 MW of projects under development.

Mercom had confirmed the IPO plans several months back and fact that the draft prospectus was filed about a month ago.

According to the filing, ACME Solar will use ₹4,356.9 million (~$66.71 million) to repay debt from Piramal Finance and Innovador Traders. ACME Solar is planning to also repay ₹5,410 million (~$82.84 million) to its parent ACME Cleantech.

More importantly, the company plans to use ₹8,690 million (~$133.06 million) to finance the Bhadla solar power projects which it won in an auction conducted in July at the lowest bid in India to date of ₹2.44 (~$0.04)/kWh.

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