DRHP is filed by Premier Energies to raise Rs. 1500 crore

The second-largest integrated solar cell and solar module manufacturer in India, Premier Energies Limited, with its headquarters in Hyderabad, has filed a draft red herring prospectus (DRHP) to SEBI, the capital markets regulator, with the goal of raising more than Rs 1,500 crore through an initial public offering (IPO).

 

The IPO consists of an offer for sale (OFS) by the selling shareholders to purchase up to 2,82,00,000 shares and a new issuance of equity shares up to Rs 1,500 crore.

Promoter Chiranjeev Singh Saluja wants to sell 42,00,000 equity shares, South Asia Growth Fund II Holdings LLC wants to sell 2,38,46,400 equity shares, and South Asia EBT Trust wants to sell 1,53,600 equity shares as part of the Offer for Sale component.

Premier Energies may investigate a pre-IPO placement of certain securities for a maximum of Rs 300 crores. This would cause the amount of the new issuance to be reduced by the amount of the pre-IPO placement.

A 4 GW Solar PV TOPCon Cell and 4 GW Solar PV TOPCon Module manufacturing facility in Hyderabad, Telangana, is to be partially financed by an investment of Rs 1,168 crores in Premier Energies Global Environment Private Limited (PEGEPL), the company’s subsidiary. This is one of the proposed uses for the net proceeds from the fresh issue. The remaining sum will be used for basic business needs.

Premier Energies provides O&M services, manufactures solar PV cells and modules, completes EPC projects, generates independent electricity, and serves a wide range of customers, including OEMs, IPPs, and off-grid operators like Tata electricity Solar Systems and NTPC.

In December 2023, Premier Energies became the biggest exporter of solar cells from India to the US, with five production sites located on company-owned property in Hyderabad.

Between FY2021 and FY2023, the company’s operating revenue increased at a compound annual growth rate (CAGR) of 42.71%. Operating revenue at the conclusion of the 2023 fiscal year was Rs 1,428 crore, of which Rs 2,017 crore was earned in the nine months that concluded on December 31, 2023. Premier Energies has Rs 5,362 crore in orders as of March 15, 2024.

The issue’s book running lead managers are ICICI Securities, JP Morgan India, and Kotak Mahindra Capital Company. It is suggested that the equity shares be listed on the BSE and NSE.