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

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Strengths

Diversified Portfolio: Operates across 12 states in India, reducing dependence on a single market.

Strong Position: Among the top 10 renewable energy companies in India.

Operational Efficiency: Capacity of 1,340 MW.

Government Support: Incentives and policies.

Experienced Team: Led by a skilled management team.

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Weaknesses

Recurring Losses: Incurred losses in FY22 and FY23.

High Debt: Significant borrowings.

Intense Competition: Faces competitive pressures.

Industry Dependence: Heavily reliant on the solar industry.

📈 SWOT
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Opportunities

Growing Demand: Increasing focus on renewable energy sources.

Government Initiatives: Supportive policies and incentives.

Technology: Advancements in solar energy technology.

Energy Demand in India: Rising demand offers growth potential.

Threats

Regulatory Changes: Potential policy shifts impacting renewables.

Intense Competition: Established competitors in the sector.

Trade Restrictions: Tariffs affecting imports.

Fluctuating Costs: Price volatility in raw materials.

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.

IPO DateNovember 6, 2024 to
November 8, 2024
Listing Date[.]
Face Value₹2 per share
Price band₹275 to ₹289 per share
Lot Size51 shares
Total issue size100,346,022 shares (aggregating up to ₹2,900.00 Cr)
Fresh issue82,871,973 shares (aggregating up to ₹2,395.00 Cr)
Offer for sale17,474,049 shares of ₹2 (aggregating up to ₹505.00 Cr)
Employee Discount ₹27 per share
Issue TypeBook Built issue IPO
Listing AtBSE, NSE
Share holding pre issue522,207,910
Share holding post issue60 5,079,883

ACME Solar Holdings IPO Reservation

Investor Category Shares offered Maximum Allottees
Anchor Investor Shares Offered4,50,00,000
(44.84%)
NA
QIB Shares Offered3,00,00,000
(29.9%)
NA
NII (HNI) Shares Offered1,50,00,000
(14.95%)
bNII > ₹10L1,00,00,000
(9.97%)
14,005
sNII < ₹10L50,00,000
(4.98%)
7,002
Retail Shares Offered1,00,00,000
(9.97%)
1,96,078
Employee Shares Offered3,46,021
(0.34%)
NA
Total Shares Offered10,03,46,021
(100%)

ACME Solar Holdings IPO Anchor investors Details

Bid DateNovember 5, 2024
Shares offered45,000,000
Anchor Portion Size (In Cr.)1,300.50
Anchor lock-in period end date for 50% shares (30 Days)December 11, 2024
Anchor lock-in period end date for remaining shares (90 Days)February 9, 2025

ACME Solar Holdings IPO Lot Size

ApplicationLotsSharesAmount
Retail (Min)151₹14,739
Retail (Max)13663₹191,607
S-HNI (Min)14714₹206,346
S-HNI (Max)673,417₹987,513
B-HNI (Min)683,468₹1,002,252

ACME Solar Holdings IPO Timeline

IPO Open DateWednesday, November 6, 2024
IPO Close DateFriday, November 8, 2024
Basis of AllotmentMonday, November 11, 2024
initiation of refundsTuesday, November 12, 2024
Credit of Shares to DematTuesday, November 12, 2024
Listing DateWednesday, November 13, 2024
Cut-off time for UPI mandate Confirmation5:00 PM on
Thursday, November 8, 2024

ACME Solar Holdings Financials

ParticularsPeriod ended June 30, 2024Period ended March 31, 2024Period ended March 31, 2023Period ended March 31, 2022
Assets13,985.1413,394.1312,186.9510,887.62
Revenue340.011,466.271,361.371,562.73
Profit After tax (PAT)1.39697.78-3.1762.01
Net Worth1,942.122,590.871,900.561,908.76
Reserves and surplus1,837.681,836.431,146.121,154.32
Total Borrowing9,319.918,217.598,657.357,563.60
Amount in ₹ Cr

ACME Solar Holdings IPO Promoter Holding

Share Holding Pre issue100.00%
Share Holding Post issue

ACME Solar Holdings KPI (Key Performance indicators)

KPIValues
ROE2.93
Debt/Equity3.89
RoNW0.07
P/BV7.77
PAT Margin (%)0.41

Pre IPOPost IPO
EPS (₹)13.360.09
P/E (x)21.633147.37

ACME Solar Holdings IPO Subscription Status (Bidding Details)

CategorySubscription
(times)
Shares offered Shares bid for
QIB3.723,00,00,00011,15,56,023
NII1.021,50,00,0001,52,69,451
bNII (bids above ₹10L)0.911,00,00,00090,59,793
sNII (bids below ₹10L)1.2450,00,00062,09,658
Retail3.251,00,00,0003,25,46,568
Employee1.853,46,0216,40,254
Total2.895,53,46,02116,00,12,296

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

GMP DateIPO PriceGMPSub2 Sauda rateEstimated Listing Price Last Updated
12-11-2024289.00₹-4₹285
(-1.38%)
12 November, 2024
11-11-2024
(Allotment)
289.00₹-4₹285
(-1.38%)
11 November, 2024
10-11-2024289.00₹-1₹288
(-0.35%)
10 November, 2024
09-11-2024289.00₹-1₹288
(-0.35%)
09 November, 2024
08-11-2024
(Close)
289.00₹-1₹288
(-0.35%)
08 November, 2024
07-11-2024289.00₹0₹289 (0%)07 November, 2024
06-11-2024
(Open)
289.00₹5200/2800₹294
(1.73%)
06 November, 2024
05-11-2024289.00₹10400/5600₹299
(3.46%)
05 November, 2024
04-11-2024289.00₹271000/14000₹316
(9.34%)
04 November, 2024
03-11-2024289.00₹301200/16800₹319
(10.38%)
03 November, 2024
02-11-2024289.00₹0₹289 (0%)02 November, 2024
01-11-2024289.00₹0₹289 (0%)01 November, 2024
31-10-2024289.00₹0₹289 (0%)31 October, 2024
30-10-2024₹0₹ (0%)30 October, 2024
29-10-2024₹0₹ (0%)29 October, 2024
28-10-2024₹0₹ (0%)28 October, 2024
27-10-2024₹0₹ (0%)27 October, 2024
26-10-2024₹0₹ (0%)26 October, 2024
25-10-2024₹0₹ (0%)25 October, 2024

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.

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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Disclaimer

This article is not written by a financial advisor and should not be considered personalized financial advice. Please consult a financial expert before making any investment decisions, or conduct your own research.

FAQ?

Q: What is the IPO date of ACME Solar Holdings?

Ans. The IPO date of ACME Solar Holdings is November 6-8, 2024.

Q: What is the price band of the ACME Solar Holdings IPO?

Ans. The price band of the IPO is ₹275-289 per share.

Q: How much does ACME Solar Holdings aim to raise through the IPO?

Ans. ACME Solar Holdings aims to raise ₹2,900 crore through the IPO.

Q: How many shares were allocated to anchor investors?

Ans. 45,000,000 shares were allocated to anchor investors.

Q: What is ACME Solar Holdings business?

Ans. ACME Solar Holdings is a leading Indian renewable energy company, specializing in solar and wind power.

Q: How can I apply for the IPO?

Ans. You can apply for the IPO through your broker or online trading platform.

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