ACME Solar Holdings has filed for an initial public offering (IPO) valued at $359.13 million.
India-based Acme Solar Holdings has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise INR 3,000 crore ($359.13 million) through an IPO.
“The offer also includes reservation for a subscription by eligible employees and a discount is offered to eligible employees who bid in the employee reservation section,” ACME Solar said.
ACME Solar said that “in consultation with the book-running lead manager, [it] may consider issuance of specific securities up to INR 400 crore as a pre-IPO placement. When such placement is completed, the size of the new issue will be reduced.”
The Company intends to use the net proceeds from the new issue for the full or partial repayment/prepayment of certain outstanding loans of its subsidiaries and for general corporate purposes.
The offer will be made through the book building process, whereby not less than 75% of the net offering will be available for allocation on a pro-rata basis to qualified institutional buyers, and not more than 15% of the net offering will be available for allocation to non-institutional investors, and no more than 10% of the net offering will be available for allocation to private retail investors.
ACME Solar Holdings is one of India’s largest private sector renewable energy producers and is among the top 10 renewable energy players in the country in terms of operational capacity, according to a CRISIL report as of March 31, 2024. Over the years, it has diversified and expanded its portfolio from solar projects to an integrated renewable energy company in India.
ACME Solar develops, builds, owns, operates and maintains utility-scale renewable energy projects through its own engineering, procurement and construction (EPC) department, as well as its operations and maintenance (O&M) team. ACME Solar generates revenue by selling electricity to various buyers, including central and state government-backed entities.
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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 an under-construction contracted project capacity of 1,650 MW, including 1,500 MW (2,192 MWp) of solar projects and 150 MW of wind projects. In addition, it had an under-construction allocated project capacity of 2,380 MW, consisting of 300 MW of solar projects, 830 MW of hybrid energy projects and 1,250 MW of FDRE energy projects.
In May 2024, ACME Solar signed power purchase agreements for two of the under-construction awarded FDRE projects with a combined capacity of 570 MW, bringing the contracted project capacity under construction to 2,220 MW.
As of March 31, 2024, the company’s 18 of its 28 operational projects are in the states of Andhra Pradesh, Rajasthan and Telangana, representing 85.07% of the total operational project capacity.
Nuvama Wealth Management, ICICI Securities, JM Financial, Kotak Mahindra Capital Co. and Motilal Oswal Investment Advisors are the lead managers, and KFin Technologies is the registrar of the issue.
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