What is the price band for the ACME Solar IPO?

The price band is set between ₹275 and ₹289 per share.

When will the IPO open and close for subscription?

The IPO will open on November 6, 2024, and close on November 8, 2024.

What is the purpose of the ACME Solar IPO?

The primary aim is to use the funds for debt repayment and general corporate expenses.

How can investors check the allotment status?

Investors can verify allotment status on the NSE and BSE websites or through Link Intime India.

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Contents

1 ACME Solar Holdings IPO

ACME Solar Holdings IPO

ACME Solar Holdings IPO Opens Nov 6: Price Band, Issue Size, Key Dates, and Essential Info

1. IPO Details

IPO Date: Opens on November 6, 2024, and closes on November 8, 2024.
Price Band: ₹275 to ₹289 per share.
Issue Size: Aiming to raise ₹2,900 crore.
- Fresh Issuance of Equity Shares: Worth ₹2,395 crore.
- Offer-for-Sale (OFS): ₹505 crore by promoter ACME Cleantech Solutions.
Anchor Investors: Bidding begins on November 5, 2024.

2. Key Dates

Share Allotment: Expected on November 11, 2024.
Refunds for Unsuccessful Bidders: Initiated on November 11, 2024.
Demat Transfer: Expected on November 12, 2024.
Listing Date: Likely on November 13, 2024, on NSE and BSE.

3. Purpose of the IPO

The fresh issuance proceeds will be allocated to:

Debt Repayment: Improving the financial structure by reducing the company’s debt burden.
General Corporate Expenses: Supporting overall business activities and strengthening the operational foundation.

4. About ACME Solar Holdings

Industry: Renewable energy, focusing on solar, wind, hybrid, and firm dispatchable renewable energy (FDRE) projects.
Operations: Engages in developing, building, owning, and operating utility-scale renewable projects, primarily selling electricity to government-backed entities.
Project Capacity:
- Operational: 1,340 MW in solar.
- Under-Construction Contracted Projects: 3,250 MW.
- Under-Construction Awarded Projects: 1,730 MW.

5. Financial Highlights

FY24 Profit: ₹697.8 crore, a significant recovery from a loss of ₹3.17 crore in the previous fiscal year.
Revenue Growth: Operational revenue grew by 1.9% YoY to ₹1,319.3 crore in FY24.

Advantages of ACME Solar Holdings IPO

Debt Reduction: With funds allocated toward reducing debt, the IPO can improve ACME Solar’s balance sheet, potentially strengthening its financial position.
Sector Growth: The renewable energy sector is expanding as demand for sustainable energy rises, offering a favorable market for ACME Solar.
Established Market Presence: With a large and diversified portfolio, ACME Solar is positioned competitively within the renewable energy sector.
Strong Financial Recovery: The company’s turnaround to profitability and revenue growth reflects resilience and potential for further financial improvements.

Disadvantages of ACME Solar Holdings IPO

Dependency on Regulatory Approvals: The renewable energy sector is highly dependent on government policies and subsidies, making ACME vulnerable to regulatory shifts.
High Debt Levels: Although the IPO aims to reduce debt, the current debt load remains substantial and could impact profitability until it is further decreased.
Market Volatility: The performance of the IPO may be influenced by external market conditions, which could impact investor returns in the short term.

Conclusion

The ACME Solar Holdings IPO offers an investment avenue into the growing renewable energy sector with a company demonstrating resilience and financial recovery. The planned debt reduction is a positive aspect, potentially leading to a stronger balance sheet, but prospective investors should weigh external risks, including regulatory dependency and market fluctuations. For those interested in long-term growth within the renewable energy space, ACME Solar’s IPO holds promise.