Global power dynamics are evolving swiftly, with nearly 75% of the world’s electricity set to come from sustainable sources by 2050. With the fourfold increase in power output, solar power is becoming more and more important. By the close of 2023, India had climbed to the 5th spot globally for photovoltaic (PV) deployment, showcasing its strong commitment to this shift.
Premier Energies is deeply embedded in this transformation. The firm focuses on high-efficiency solar PV production, alongside offering full-scale services. From India to international markets, they are driving the push towards a more environmentally friendly future.
In this blog, we’ll dive into Premier Energies’ upcoming IPO, exploring essential details, the company’s capital deployment strategies, and their potential impact on the expanding solar industry.
About Premier Energies
The company with nearly three decades of expertise, stands as one of the leading forces in the renewable energy sector. Focused primarily on solar PV production, the company utilises bifacial monocrystalline PERC cells from M10 wafers measuring 182mm x 182mm.
These high-efficiency components are integral to their portfolio, which also includes customised solutions tailored to unique client needs. The portfolio also includes TOPCon, catering to a broad range of applications.
Beyond manufacturing, the firm is heavily involved in large-scale renewable energy initiatives. The brand provides a broad range of installations, from rooftop systems to floating power plants, through its all-inclusive EPC–Engineering, Procurement, and Construction–services.
Their expertise spans ground-mounted arrays, canal-top setups, and hybrid power solutions. Additionally, they offer post-installation support through operations and maintenance (O&M) services, ensuring continuous performance over time. Their own 2 MW power facility in Jharkhand further exemplifies their role in energy production.
Operating out of five plants in Hyderabad, the organisation supplies an array of notable clients, including industry giants like NTPC, Tata Power, and Panasonic Life Solutions. They have penetrated international markets, including those in Germany, South Africa as well as the United States.
Also read: The renewable energy industry in India: A game-changer for the environment
Financial performance
Premier Energies saw substantial growth in the June 2024 quarter, generating ₹1,657.37 crore in income, a sharp rise from ₹611 crore during the same period last year. The firm’s net earnings also rose significantly, reaching ₹198.16 crore, compared to ₹31.33 crore in the previous year.
Operational improvements were evident as well, with the EBITDA –Earnings Before Interest, Taxes, Depreciation, and Amortisation–margin increasing to 22.16% from 12.44%, signalling better cost control and enhanced productivity.
Their contracts pipeline, valued at ₹5,926.57 crore as of June 2024, covers various segments including solar modules, solar cells, and EPC projects. This wide-ranging portfolio highlights the firm’s diverse capabilities and strong foothold in the market.
For FY 2023-24, the company reported total earnings of ₹3,143.80 crore and financial gains of ₹231.36 crore, underscoring its consistent growth and ability to maintain profitability while expanding its operations.
| Particulars ( ₹ crore) | Q1FY25 | Q1FY24 | YoY |
| Revenue from operations | 1657.4 | 611 | 171% |
| Total expenses | 1423.72 | 573.4 | 148% |
| PBT | 245.732 | 43.531 | 464% |
| PAT | 198.16 | 31.33 | 533% |
Source: Premier Energies RHP
Also read: The role of the energy sector in powering India’s growth
Premier Energies IPO
Key details
The company aims to raise ₹2,830 crore through its public issue. A new issuance valued at ₹1,291.40 crore and an OFS or offer for sale containing 34.2 million equity units are included in this capital raise. The price range is set between ₹427 and ₹450 per stock. Also, employees can get a discount of ₹22 on each equity unit.
| Price range per stock | ₹427 – ₹450 |
| Face value | ₹1 per share |
| Fresh issue | ₹1,291.40 crore |
| OFS | 34.2 million equity units |
| Employee discount per equity unit | ₹22 |
| Listing at | BSE, NSE |
Investor categories are split :-
- 50% allocated to Qualified Institutional Buyers (QIBs)
- 15% for Non-Institutional Investors (NIIs)
- 35% for retail participants
A consortium of financial institutions is overseeing this public offering. KFin Technologies is the registrar. While the book runners are :-
- Kotak Mahindra Capital
- J.P. Morgan India
- ICICI Securities
IPO timelines
The timeline for the public offering is tight. Subscription begins on 27th August and concludes on 29th August. Anchor investors will have an earlier entry point on 26th August.
| Event | Date |
| Anchor investor allocation | 26th August |
| Bid/offer opens on | 27th August |
| Bid/offer closes on | 29th August |
| Finalisation of allotment | 30th August |
| Refunds initiated | 2nd September |
| Credit of shares to demat | 2nd September |
| Listing on stock exchanges | 3rd September |
Offer objective
A significant portion of the raised capital will be directed toward expanding the company’s operations.
Specifically, funds will be invested in Premier Energies Global Environment Private Limited to support the establishment of a 4 GW Solar PV TOPCon Cell and 4 GW TOPCon Module manufacturing facility in Hyderabad. This strategic investment is focused on scaling up production capabilities.
Additionally, part of the capital will go toward corporate purposes to enhance operational flexibility and ensure sustained business momentum.
Pre-offer shareholding pattern
The IPO is backed by key stakeholders who are offering shares through the OFS route. Among the prominent sellers are South Asia Growth Fund I Holdings LLC, South Asia EBT Trust, and the company’s promoter, Chiranjeev Singh Saluja.
| Name | Equity Shares | Equity Share Capital (%) | Equity Shares offered for sale (face value ₹1 ) |
| Surender Pal Singh Saluja | 16,476,120 | 4.93 | – |
| Chiranjeev Singh Saluja | 273,675,382 | 81.92 | 7,200,000 |
| Promoter group | 14,695,986 | 4.4 | – |
| South Asia Growth Fund II Holdings LLC | 88,065,171 | 21 | 26,827,200 |
| South Asia EBT Trust | 567,247 | Negligible | 172,800 |
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Bottomline
Participating in Premier Energies’ IPO offers a chance to engage with a company deeply embedded in the renewable energy shift. Its financial gains and clear expansion strategy could yield promising returns. Nonetheless, market volatility and sector-specific challenges should be carefully considered. It’s important to evaluate all variables before taking a position.
