Premier Energies files draft IPO documents with Rs 1,500 crore fresh issue

Premier Energies, one of the largest manufacturers of solar cells and solar modules, has filed preliminary documents with capital markets regulator SEBI to raise funds through an initial public offering.

The IPO will consist of fresh issue of shares worth Rs 1,500 crore by the company and an offer for sale (OFS) of shares worth Rs 2,820 crore by existing shareholders.

Investors South Asia Growth Fund II Holdings LLC and South Asia EBT Trust and promoter Chiranjeev Singh Saluja are the selling shareholders of OFS.

At the time of filing the draft, the promoters hold 72.23 per cent of the shares on a fully diluted basis, with 26.12 per cent of the shares held by public shareholders such as South Asia Growth Fund II Holdings LLC and South Asia EBT Trust. Additionally, the employee owns 1.65% of the company's stock.

The Hyderabad-based company may also consider mobilizing Rs 300 crore in a pre-IPO offering before filing a red herring prospectus with the Registrar of Companies.

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Premier Energies claims to be the second largest integrated manufacturer of solar cells and solar modules with an annual installed capacity of 2GW and 336GW respectively, and has earmarked Rs 1,168.74 billion from net new issuance for 4GW. The amount will be spent on establishing power generation facilities. Solar TOPCon cell and 4 GW solar TOPCon module manufacturing facility in Hyderabad by subsidiary Premier Energy Global Environment (PEGEPL). The remaining newly issued funds will be used for general corporate purposes.

On the financial front, the company, which also focuses on EPC project execution, independent power generation, and O&M services related to EPC projects, posted a consolidated loss of 13.3 million rupees in FY03/23. The operating revenue for the previous year was 14.4 million rupees, while the operating revenue for the same period increased by 92.3% to 1,428.5 million rupees.

However, the company turned profitable in the nine months ended December 2024, with a profit of Rs 127.4 million on sales of Rs 2,017.2 million.

With five manufacturing facilities in Hyderabad, Premier Energies supplies business products to multiple customers including NTPC, Tata Power, Panasonic Life Solutions, Shakti Pumps, First Energy 6, Bluepine Energies, Luminous Power Technologies, Hartek Solar, and Green Infra Wind Energy. We offer

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The company's order book stood at Rs 5,362 million as of March 15, 2024, of which Rs 1,197.5 million was for non-DCR solar modules, Rs 3,212.9 million for DCR solar modules, and Rs 8 was for solar cells. 150 million rupees and $150 million for the EPC project.

Kotak Mahindra Capital Company, JP Morgan India and ICICI Securities are the lead bookrunning managers for the issue.