ACME Solar Holdings IPO: A Comprehensive Guide

Introduction to ACME Solar Holdings IPO:

ACME Solar Holdings, one of India’s leading renewable energy companies, is opening its IPO from November 6 to November 8, 2024. This IPO has attracted considerable interest among investors, making it an exciting option in the renewable energy space. Here’s a detailed analysis to help you decide if this IPO fits your investment strategy.

Learn the key differences between an IPO and Offer for Sale to make informed investment choices by visiting our OFS vs. IPO guide.

About ACME Solar Holdings Limited:

Founded in 2015, ACME Solar Holdings Limited is a significant player in India’s renewable energy sector, focusing on solar and wind energy. It is renowned for developing, constructing, owning, operating, and maintaining large-scale renewable energy projects. This is achieved through its in-house engineering, procurement, and construction (EPC) division and dedicated operations and maintenance (O&M) team.

As of March 31, 2024, the company had:

• Operational Project Capacity: 1,320 MW (1,802 MWp) in solar power.
• Contracted Capacity: 1,650 MW, including 1,500 MW (2,192 MWp) solar projects and 150 MW wind projects.
• Projects Under Construction: 2,380 MW, encompassing 300 MW solar, 830 MW hybrid, and 1,250 MW flexible-dispatch renewable energy (FDRE) projects.

The company’s revenue model centers around selling electricity to various customers, including projects backed by both state and central governments.

Key Details of ACME Solar Holdings IPO:

IPO Timeline and Important Dates:

• Open Date: November 6, 2024
• Close Date: November 8, 2024
• Basis of Allotment Date: November 11, 2024
• Refund Initiation Date: November 12, 2024
• Credit to Demat Account: November 12, 2024
• Listing Date: November 13, 2024

Issue Size and Structure:

• Total Issue Size: 100,346,022 shares (₹2,900 Cr)
  • Fresh Issue: 82,871,973 shares (₹2,395 Cr)
  • Offer for Sale (OFS): 17,474,049 shares (₹505 Cr)
• Face Value: ₹2 per share
• Price Band: ₹275 to ₹289 per share
• Listing Platforms: BSE, NSE

Investment Requirements and Lot Size:

Investors can bid in lot sizes, with the minimum lot size for retail investors being 51 shares. The table below shows the minimum and maximum investments across investor categories:

ACME Solar Holdings IPO GMP (Grey Market Premium):

GMP provides insights into investor sentiment. On Day 2, ACME Solar’s IPO had a subscription rate of 70%, with the retail portion fully booked, but GMP currently reflects limited listing gains. Monitoring GMP can offer a perspective on market expectations, though it is not a guaranteed predictor of IPO success. Understand how GMP reflects IPO demand in our IPO GMP overview.

Why Consider Investing in ACME Solar Holdings IPO?

1. Renewable Energy Expansion: With India’s focus on renewable energy, ACME Solar is well-positioned to benefit from long-term growth prospects in the solar and wind energy markets.
2. Experienced In-House Teams: The company’s in-house EPC and O&M teams bring expertise, leading to lower operational risks.
3. Attractive Financial Structure: Eligible employees receive a discount of ₹27 per share, adding value for those affiliated with the company.

Risks Associated with ACME Solar Holdings IPO

1. Market Volatility: Shifts in market sentiment can impact listing gains.
2. Regulatory Dependency: Policy changes in renewable energy could affect revenue.
3. Operational Risks: Scaling projects is capital-intensive, which could impact profitability and returns.

How to Apply for ACME Solar Holdings IPO:

Investors can apply through the ASBA (Application Supported by Blocked Amount) facility on banking platforms or brokerage accounts. To ensure a valid application, confirm the UPI mandate by 5 PM on November 8, 2024.
Discover the strategy of quickly trading IPO shares for potential profits in our article on IPO Flipping

FAQs On ACME Holdings IPO GMP:

1. What are the dates for ACME Solar Holdings IPO?
The IPO opens on November 6, 2024, and closes on November 8, 2024.

2. What is the price range for ACME Solar Holdings IPO?
The price band is set between ₹275 to ₹289 per share.

3. How many shares are being offered?
The IPO offers 100,346,022 shares in total, combining fresh issues and an offer for sale.

4. What is the minimum investment required?
Retail investors can start with a single lot of 51 shares, totalling about ₹14,739.

5. Is ACME Solar’s IPO suitable for ESG-focused investors?
ACME Solar aligns with ESG goals, which may appeal to environmentally conscious investors.

Conclusion: Why you should invest in ACME Holding IPO?

With its strong position in the renewable energy sector, ACME Solar Holdings offers investors an exciting IPO opportunity. Before investing, carefully consider the growth potential and associated risks and ensure alignment with your portfolio strategy. To get such important insights about investment sign up to Tap Invest today!