Solar Module Manufacturer Premier Energies Files DRHP for ₹15 Billion IPO

The proceeds will be used for a 4 GW TOPCon Cell and 4 GW TOPCon module facility


Telangana-based solar cell and module manufacturer Premier Energies has filed the draft red herring prospectus (DRHP) with the Securities and Exchange Board of India to raise over ₹15 billion (~$179.91 million) through an initial public offering (IPO).

The IPO would consist of a fresh issue of equity shares with a face value of ₹1 (~$0.012) aggregating up to ₹15 billion (~$179.91 million) and an offer for sale of up to 28.2 million shares by the selling shareholders.

Premier Energies proposes to utilize the net proceeds of the fresh issue to invest ₹11.68 billion (~$140.09 million) in its subsidiary, Premier Energies Global Environment, for part-financing the establishment of a 4 GW Solar TOPCon cell and 4 GW solar TOPCon module manufacturing facility in Hyderabad, Telangana, and the rest towards general corporate purposes.

Under the offer-for-sale component,  South Asia Growth Fund II Holdings is offering up to 23,846,400 equity shares of face value ₹1 (~$0.012) each. The weighted average acquisition cost per equity share for this entity is ₹15.81 (~$0.19).

South Asia EBT Trust is offering up to 153,600 equity shares of face value ₹1 (~$0.012) each, with a weighted average cost of acquisition per equity share of ₹15.81 (~$0.19).

Chiranjeev Singh Saluja, Executive Director at Premier Energies, intends to sell up to 4.2 million equity shares of face value ₹1 each. The weighted average acquisition cost per equity share is ₹0.25 (~$0.003).

In consultation with the booking running lead managers, Premier Energies may consider issuing specified securities with an aggregate value of up to ₹3 billion (~$35.98 million) before filing the Red Herring Prospectus. If the pre-IPO placement is completed, the amount raised will be deducted from the fresh issue.

The booking running lead managers for the transactions are Kotak Mahindra Capital Company, J.P. Morgan India, and ICICI Securities.

Premier Energies was India’s fifth largest solar module supplier, with a 4.3% market share in the first half (1H) of the calendar year 2023, according to Mercom’s India Solar Market Leaderboard 1H 2023.

Recently, Mumbai-based solar module manufacturer Waaree Energies filed draft papers with the market regulator to raise ₹30 billion (~$361 million) in an IPO.