ACME Solar Limited IPO: Key details, listing date and lot size

Are you ready for the ACME Solar Private Limited IPO? This much-anticipated offering, amounting to ₹2,900 crores, will open for subscription on November 6, 2024, and close on November 8, 2024. ACME Solar Private Limited's upcoming IPO comprises a fresh issue of 8.29 crore shares worth ₹2,395 crores and an offer for sale of 1.75 crore shares totalling ₹505 crores. 

Investors can apply within a price band of ₹275 to ₹289 per share, with a minimum investment of ₹14,739 for retail investors. The allotment is expected to be finalised on November 11, 2024, and listing on BSE and NSE is scheduled for November 13, 2024. Don't miss out on this exciting IPO investment opportunity, and keep an eye on other upcoming IPOs!

ACME Solar Private Limited IPO details

The ACME Solar Private Limited IPO is a significant offering worth ₹2,900 crores, combining a fresh issue and an offer for sale. Scheduled to open for subscription on November 6, 2024, and close on November 8, 2024, this IPO provides an excellent opportunity for investors to participate in the renewable energy sector.

ACME Solar Private Limited IPO timeline

The ACME Solar Private Limited IPO timeline outlines key dates for investors. The subscription period opens on November 6, 2024, and closes on November 8, 2024. Allotment results will be available on November 11, 2024, followed by the listing on BSE and NSE set for November 13, 2024.

ACME Solar Private Limited IPO review

Incorporated in June 2015, ACME Solar Holdings Limited is a leading Indian producer of renewable energy, specialising in solar and wind power. The company focuses on the development, construction, ownership, operation, and supervision of large-scale renewable energy projects, leveraging its in-house engineering, procurement, and construction (EPC) division and operations and maintenance (O&M) team. 

As of March 31, 2024, ACME Solar Private Limited had an operational project capacity of 1,320 MW in solar power, with a contracted capacity of 1,650 MW, including 150 MW of wind power. Its competitive strengths include a strong market position, an integrated approach, a diverse portfolio, stable cash flows from government contracts, and an experienced management team with 214 permanent employees.

ACME Solar Private Limited IPO financials

The ACME Services Private Limited IPO boasts a substantial market capitalisation of ₹17,486.81 crores as of June 30, 2024. Key performance indicators reflect the company's financial health, with a Return on Equity (ROE) of 2.93 and a Debt-to-Equity ratio of 3.89, indicating a significant reliance on debt financing. 

The RoNW stands at 0.07, while the Price-to-Book Value (P/BV) is recorded at 7.77. The company's Profit After Tax (PAT) margin is a modest 0.41%. A comparison of earnings per share (EPS) reveals a pre-IPO EPS of ₹13.36, which drastically drops to ₹0.09 post-IPO, reflecting the significant changes in shareholding and capital structure.

ACME Solar Private Limited IPO strengths and weaknesses

The ACME Solar Private Limited IPO presents several strengths and weaknesses that potential investors should consider.

• Strengths: The company is a major player in the renewable energy sector, well-positioned to capitalise on strong industry growth trends. With capabilities spanning the entire value chain, ACME employs an integrated strategy for developing renewable energy projects, engineering, procurement, construction, operations, and maintenance. Additionally, ACME boasts a diverse portfolio of renewable energy technologies and a dedicated senior management team and promoters driving its vision.
• Weaknesses: However, the company's reliance on highly competitive power project auctions may limit its ability to expand its project portfolio. Notably, the top 10 off-takers contribute significantly to its revenue, making it vulnerable if any key partners withdraw. Furthermore, challenges in modernising and enhancing projects could lead to reduced power production and increased maintenance costs.

Should You Invest?

Considering the ACME Solar Private Limited IPO, the latest Grey Market Premium (GMP) is ₹30 as of November 4, 2024. With the upper price band set at ₹289, this suggests an estimated listing price of ₹319, indicating a potential gain of approximately 10.38% per share. 

This prospect of profit makes the ACME Solar Private Limited IPO an attractive opportunity among upcoming IPOs. However, as with any IPO investment, it's crucial to evaluate the company's fundamentals, market conditions, and personal investment strategy before committing funds. Conduct thorough research to determine if this IPO aligns with your future financial goals and risk tolerance.

FAQs

1. What is the ACME Solar Private Limited IPO?

The ACME Solar Private Limited IPO is a main-board offering consisting of 100,346,022 equity shares with a face value of ₹2, aiming to raise to ₹2,900 crores. The share price is set between ₹275 and ₹289, with a minimum order quantity of 51 shares. This IPO will be open for subscription from November 6, 2024, to November 8, 2024. Kfin Technologies Limited is the registrar.

2. When will the ACME Solar Private Limited IPO?

The ACME Solar Private Limited IPO will open for subscription on November 6, 2024, and will close on November 8, 2024.

3. When is the ACME Solar Private Limited IPO listing date?

The tentative listing date for the ACME Solar Private Limited IPO is Wednesday, November 13, 2024.