ACME Solar Holdings IPO – Review Detailed Analysis

ACME Solar Holdings, a leading Indian renewable energy producer, has embarked on its Initial Public Offering (IPO) journey, aiming to raise ₹2,900 crore. As India accelerates its transition to clean energy, ACME Solar Holdings is poised to capitalize on the growing demand for sustainable power solutions. With a strong track record of delivering large-scale solar and wind power projects, the company has established itself as a key player in India’s renewable energy landscape.

This comprehensive review provides a detailed analysis of ACME Solar Holdings’ IPO, examining the company’s financial performance, industry outlook, growth prospects and potential challenges. Our analysis will help investors make informed decisions and navigate the opportunities and risks associated with this IPO.

Key aspects covered in this review include:

1. Company overview and business model
2. Financial performance and growth prospects
3. Industry outlook and market trends
4. IPO details and valuation
5. Strengths, weaknesses, opportunities and threats (SWOT analysis)
6. Investment strategy and recommendations

Read on to gain a deeper understanding of ACME Solar Holdings IPO and its potential implications for investors.

About – ACME Solar Holdings

ACME Solar Holdings IPO – Review

Overview

ACME Solar Holdings is a leading Indian electricity producer focused on renewable energy sources. It is one of the largest producers of electricity from wind and solar energy in India. Founded in 2015, the company aims to advance clean energy solutions in India, contributing to the goal of achieving net-zero emissions.

ACME Solar Holdings operates in various segments:

• Solar: Large-scale solar power projects, offering comprehensive services from development to operation.
• Solar-Wind Hybrid/FDRE: Combining solar and wind power with battery energy storage systems.
• Wind: Large-scale wind power projects.

Industry outlook

India’s renewable energy sector is poised for rapid growth, driven by government support, declining technology costs and increasing energy demand. The solar energy market is expected to grow from $10.4 billion in 2023 to $24.9 billion by 2030, at a CAGR of 13.4%. The solar PV panel market is projected to reach $13.69 billion by 2030, growing at a CAGR of 9.4%. India’s geographical location with 300 sunny days per year, makes it ideal for solar energy generation.

SWOT Analysis

ACME Solar Holdings IPO Details

ACME Solar Holdings IPO Details:

ACME Solar Holdings has announced its Initial Public Offering (IPO) details, scheduled to take place from November 6, 2024 to November 8, 2024. The company aims to raise ₹2,900 crore through this IPO with a price band of ₹275 to ₹289 per share. The face value of each share is ₹2, and the lot size is 51 shares.The IPO consists of a fresh issue of 82,871,973 shares aggregating up to ₹2,395 crore and an offer for sale of 17,474,049 shares aggregating up to ₹505 crore. The employee discount is ₹27 per share.

The listing date is yet to be announced and the shares will be listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). The anchor investor bidding took place on November 5, 2024, with 45,000,000 shares offered, representing an anchor portion size of ₹1,300.50 crore.

ACME Solar Holdings IPO Reservation

ACME Solar Holdings IPO Anchor investors Details

ACME Solar Holdings IPO Lot Size

ACME Solar Holdings IPO Timeline

ACME Solar Holdings Financials

ACME Solar Holdings IPO Promoter Holding

ACME Solar Holdings Listing Details

ACME Solar Holdings KPI (Key Performance indicators)

ACME Solar Holdings IPO Subscription Status (Bidding Details)

ACME Solar Holdings IPO Day-wise Grey Market Premium (GMP)

The Grey Market Premium (GMP) for ACME Solar Holdings’ IPO has been fluctuating in the days leading up to its listing. As of November 8, 2024 the GMP stood at ₹-1 indicating a slight decline. However, earlier trends showed a positive trajectory with GMP reaching ₹30 on November 3, 2024 and ₹27 on November 4, 2024. This volatility suggests market uncertainty, but analysts remain optimistic. The estimated listing price has ranged from ₹288 to ₹319, indicating potential gains for investors

ACME Solar Holdings Stock Buy or Not?

Investing in ACME Solar Holdings: A Promising Opportunity with Caution. Are you considering investing in ACME Solar Holdings? As a savvy investor, you’re likely weighing the pros and cons.

On the positive front, ACME Solar Holdings is a leader in India’s renewable energy market, with a diversified portfolio that’s poised for growth. The company’s strong industry position, combined with government initiatives to achieve net-zero emissions by 2070, makes it an attractive investment opportunity. However, there are concerns. The company has reported recurring losses in recent years, and its debt levels are substantial. These factors may impact short-term financial performance.

So, who should invest? Long-term investors with a 12-18 month horizon may find ACME Solar Holdings appealing, given its growth prospects and reasonable valuation. However, short-term investors and risk-averse individuals should exercise caution. Before making a decision, consider your risk tolerance and investment goals. Consult with financial advisors and stay informed about market trends. In Conclusion (ACME Stock buy or not?), investing in ACME Solar Holdings requires careful consideration. While the company’s growth potential is promising, its financial performance and debt levels warrant caution.

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Conclusion

Overall, ACME Solar Holdings’ stock presents a promising opportunity for long-term investors willing to take on moderate risk. The company’s strong industry position, diversified portfolio and growing market demand driven by government initiatives outweigh the concerns surrounding recurring losses and high debt. However, short-term investors and risk-averse investors should exercise caution due to potential volatility and uncertainty.

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