Premier Energies shares double investors money with bumper debut on bourses

Premier Energies IPO listing today: The company's shares listed at Rs 991 on the BSE, reflecting a whopping 120.22 per cent premium over the upper end of its issue price of Rs 450

Premier Energies IPO listing today: Shares of solar cell maker Premier Energies made a stellar debut on the stock market on Tuesday. The company's shares listed at Rs 991 on the BSE, marking a whopping 120.22 per cent premium over the upper end of its issue price of Rs 450.

On the NSE, Premier Energies shares opened at Rs 990, reflecting a 120 per cent premium.

Investors who were allotted the company's shares in the IPO saw a return of Rs 541 per share, or over 120 per cent, post-listing.

"As expected, with a strong subscription response, the listing was in line with our assumption, considering reasonable valuations before listing. Well-positioned to capitalise on industry demand in renewable energy, and an opportunity to invest in India's second-largest integrated solar cell and module manufacturer," said Prashanth Tapse, Senior VP (Research), Mehta Equities.

 

According to him, post-listing, considering a 120 per cent listing gain, the valuation front has moved from reasonably valued to stretched valuations, which would be a reason for profit-booking attempts at high levels. "We continue to recommend that conservative investors choose profit-booking, while risk-takers can continue holding for the long term, as the sector outlook remains optimistic," said Tapse.

Given the company's strategic alignment with government initiatives promoting domestic solar production, alongside its diversified customer base and recognition as a top performer in module reliability, suggests a promising future. In the long run, Tapse believes the market could give a premium multiple towards its leadership position.

Meanwhile, Shivani Nyati, Head of Wealth at Swastika Investmart, said that this exceptional performance aligns with the pre-listing hype, fueled by the company's strong fundamentals, robust investor response, and favorable market conditions. According to Nyati, the company's diversified customer base, robust order book, and recent surge in profitability have contributed to this positive sentiment.

She believes that while the solar manufacturing industry remains competitive, Premier Energies' strategic positioning and focus on innovation differentiate it from its peers. The company's ability to navigate industry headwinds, as demonstrated by its strong financial performance in FY24, further enhances its appeal.

 "Overall, Premier Energies' successful listing and impressive performance solidify its position as a promising player in the renewable energy sector. Investors who participated in the IPO may book profits, but those who still want to hold it may keep a stop-loss at Rs 890," Nyati added.

Ahead of its debut on the stock exchanges, Premier Energies shares were trading at a premium of Rs 487, or 108.22 per cent, in the grey market, signalling strong listing gains for investors.

The public issue, which ended for subscription on Thursday, August 29, 2024, received broadly favourable reviews from brokerages including Reliance Securities, Deven Choksey, Anand Rathi Research, Choice, Geojit, Canara Bank Securities, and Swastika Investmart. READ MORE

Premier Energies, which offered a fresh issue of 28,697,777 equity shares and an offer for sale, with promoters and investors offloading nearly 34,200,000 shares with a face value of Re 1 each, garnered an overwhelming response from investors.

The issue, which was available at a price band of Rs 427-450 with a lot size of 33 shares, got subscribed a whopping 74.38 times by the final day of subscription, largely driven by Qualified Institutional Buyers (QIBs), who bid a staggering 216.67 times the shares on offer. Meanwhile, non-institutional investors (NIIs) subscribed 50.04 times, and retail investors at 7.69 times by the close of the issue. The allotment of the company's shares was finalised on Friday, August 30, 2024.

About Premier Energies

Premier Energies is an integrated manufacturer of solar PV cells and solar modules, including custom-made modules for specific applications. The company also provides end-to-end solar services for ground-mounted, rooftop, floating, canal bank, canal top, and hybrid power generation systems, as well as operations and maintenance (O&M) services for executed projects. Additionally, Premier Energies produces customised products like bespoke solar tiles and operates as an independent power producer, generating 2 MW of solar power from its plant in Jharkhand.