ACME Solar Holdings IPO: Day 1 Subscription Status, Key Details, and Investor Insights

ACME Solar Holdings, a prominent name in India's renewable energy sector, has launched its initial public offering (IPO) to enthusiastic retail response, with a strong 39% subscription on the very first day. The IPO, aimed at raising ₹2,900 crore, represents a significant investment opportunity in renewable energy. With the listing scheduled tentatively for November 13, this IPO could further ACME's ambitions within the sustainable energy landscape. Here's a breakdown of day 1’s subscription details, IPO structure, and additional critical information investors need to know.

Day 1 Subscription Status and Response

The ACME Solar Holdings IPO opened for public subscription on November 6 and will continue through November 8. According to data from the NSE, the mainboard issue saw a 39% subscription on its first day. This was primarily driven by retail individual investors, who applied for approximately 1.25 crore shares, well above the 1.05 crore shares allocated for this category. This led to a 1.19 times subscription rate within the retail category alone.

Other investor categories, including Non-Institutional Investors (NIIs) and Qualified Institutional Buyers (QIBs), have shown a comparatively moderate response. Non-Institutional Investors subscribed to only 4% of their quota, placing bids for over 51.05 lakh shares against the 1.57 crore shares available to them. QIBs booked about 15% of their reserved shares, bidding for 48.45 lakh shares out of a 3.15 crore share allocation. Employees also showed significant interest, subscribing to 60% of their designated shares.

ACME Solar Holdings IPO Details: Offer Size, Price Band, and Key Dates

The ACME Solar Holdings IPO aims to raise a substantial ₹2,900 crore through a combination of fresh share issuance and an offer-for-sale (OFS). The IPO consists of two parts:

1. Fresh Issuance: 8.29 crore new shares, amounting to ₹2,395 crore.

2. Offer-for-Sale (OFS): 1.75 crore shares, adding ₹505 crore.

The price band for the IPO has been set between ₹275 and ₹289 per share. Retail investors, who have been actively subscribing, can bid for a minimum lot size of 51 shares, which equates to an investment of ₹14,739. Small NIIs can start with 14 lots, or 714 shares, for a minimum investment of ₹2,06,346, while larger NIIs can begin with 68 lots, amounting to 3,468 shares for a minimum investment of ₹10,02,252.

Important Dates:

Subscription Period: November 6 to November 8

Allotment Finalization: Expected on November 11

Refund Initiation: November 12

Listing Date: Tentatively scheduled for November 13, on both the NSE and BSE

Registrar and Promoters Behind the ACME Solar Holdings IPO

Kfin Technologies Limited is serving as the registrar for the IPO, handling all IPO application processing, allotment finalizations, and refunds. The IPO is supported by several lead managers, including Nuvama Wealth Management, ICICI Securities, JM Financial, Kotak Mahindra Capital, and Motilal Oswal Investment Advisors.

The company’s promoters include notable stakeholders such as Mamta Upadhyay, Manoj Kumar Upadhyay, ACME Cleantech Solutions Private Limited, MKU Holdings Private Limited, and the Upadhyay Family Trust, who currently hold a 100% stake in the company.

Financial Performance and Growth Prospects

ACME Solar Holdings has demonstrated impressive financial growth, especially in recent quarters. For the June quarter of FY25, the company reported revenues of ₹340.01 crore, with a net profit of ₹1.39 crore. Its net worth also increased to ₹1,942.12 crore at the close of Q1 FY25.

For the full fiscal year 2024, ACME Solar Holdings reported a revenue increase of over 7%, reaching ₹1,466.27 crore from ₹1,361.37 crore in the previous fiscal year. The company’s profitability also witnessed a positive turn, as it reported a net profit of ₹697.78 crore in FY24, compared to a net loss of ₹3.17 crore in FY23. This fiscal improvement reflects the company’s solid footing in the renewable energy market and positions it well for future growth. Additionally, the company’s net worth expanded by over 36%, standing at ₹2,590.87 crore for FY24.

ACME Solar Holdings IPO Objective: Fund Utilization and Growth Plans

ACME Solar Holdings aims to utilize the capital raised from the IPO to support its ongoing growth and financial stability. Key objectives for the IPO proceeds include:

1. Debt Repayment: A portion of the funds will be allocated to repay outstanding debts held by ACME’s subsidiaries.

2. Corporate Expansion: The company will invest in corporate growth initiatives, including general corporate purposes to expand its operational base and improve its competitive positioning in the renewable energy market.

3. Strategic Development: Further investment will be made in solar energy projects to strengthen ACME's leadership in large-scale renewable energy projects.

About ACME Solar Holdings Limited

Founded in 2015, ACME Solar Holdings has become a major force in India's renewable energy industry. The company is primarily focused on producing electricity from solar energy sources and engages in a comprehensive range of activities including the development, construction, ownership, and maintenance of large-scale renewable projects. Known for its commitment to sustainability, ACME Solar Holdings continues to make strides in renewable technology and project management, aligning with India’s green energy goals.

Final Thoughts

The ACME Solar Holdings IPO presents an opportunity for investors to partake in India's rapidly expanding renewable energy sector. With a strong start driven by retail demand, the IPO has garnered interest as a high-potential investment aligned with the future of sustainable energy. The upcoming allotment and listing dates provide key milestones for investors to watch, while ACME Solar Holdings’ financial strength and clear objectives make it an intriguing prospect for both retail and institutional investors. As India’s green energy landscape grows, ACME Solar Holdings could play a pivotal role, bolstered by new funding from this public issue.

For investors seeking long-term growth in renewable energy, ACME Solar Holdings’ IPO represents a timely and promising opportunity to participate in a sector critical to India’s sustainable future.