Premier Energies to float IPO, to raise ₹1,500 crore

Premier Energies Limited, an integrated solar cell and solar module manufacturer with an annual installed capacity of 2 GW and 3.36 GW respectively, has filed the draft red herring prospectus (DRHP) with SEBI to raise over ₹1,500 crore through an initial public offering (IPO).

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The 29-year-old company, founded by Surender Pal Singh Saluja, said it would utilise the proceeds of the fresh issue in its subsidiary Premier Energies Global Environment Private Limited (PEGEPL). Investments to the tune of ₹1,168 crore would be made for part-financing the establishment of a 4-GW Solar PV TOPCon Cell (Tunnel Oxide Passivated Contac) and 4-GW Solar PV TOPCon Module manufacturing facility in Hyderabad.

The IPO would consist of a fresh issue of equity shares aggregating up to ₹1,500 crore and an offer for sale of up to 2.82 crore shares by the selling shareholders.

“Under the offer for sale component, South Asia Growth Fund II Holdings LLC will divest 2.38 crore and South Asia EBT Trust will divest 1.53 lakh shares and promoter Chiranjeev Singh Saluja will sell 42 lakh shares,” the DRHP said.

The company might go for a pre-IPO placement of specified securities for up to ₹300 crore. “If the pre-IPO placement is undertaken, the fresh issue will be reduced to the extent of such pre-IPO placement,” the company said.

Premier Energies, which has five manufacturing facilities in Hyderabad, has become the largest Indian exporter of solar cells to the United States for the nine months ended December 31, 2023.

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The company posted revenue from operations of ₹1,428 crore in the financial year 2022-23. In the first nine months, it registered revenue from operations of ₹2,017 crore for the nine-month period ended December 31, 2023.

“As of March 15, 2024, the company had an order book of ₹5,362 crore,” it said.