Premier Energies
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 27 Aug 2024 – 29 Aug 2024
- Listing date
- 03 Sep 2024
- Face value
- ₹1 per share
- Issue price
- ₹450 per share
- Lot size
- 33 shares
- Issue type
- Book Building issue
- Total issue size
- ₹2,830 Cr
- Market cap at offer price
- ₹20,284 Cr
- Promoter holding
- 70.33% → 64.25% pre-issue → post-issue
- ISIN
- INE0BS701011
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Kotak Mahindra Capital Co.Ltd.
- Registered office
- Plot No.8/B/1 and 8/B/2, E-City, Maheshwaram Mandal, Raviryala Village, Telangana
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 1,88,02,666 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 33 shares per lot, in multiples, at ₹450
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 33 | ₹14,850 |
| Retail (max) | 13 | 429 | ₹1,93,050 |
| S-HNI (min) | 14 | 462 | ₹2,07,900 |
| S-HNI (max) | 67 | 2,211 | ₹9,94,950 |
| B-HNI (min) | 68 | 2,244 | ₹10,09,800 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 5.48 | 17.58 |
| P/E (×) | 82.12 | 25.60 |
| Price to book (×) | 30.76 | — |
| Market cap | — | ₹20,284 Cr |
Key performance indicators
- Return on net worth
- 37.46%
- ROCE
- 25.65%
- Debt / equity
- 1.86
- PAT margin
- 7.30%
- NAV per share
- ₹14.63
- Price to book
- 30.76
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Premier Energies
Premier Energies Limited is an integrated solar photovoltaic manufacturer incorporated in India in 1995 as Premier Solar Systems Private Limited, renamed to Premier Energies Limited in 2019. The company manufactures solar cells and modules using monocrystalline technology, with an annual installed capacity of 2 GW for cells and 4.13 GW for modules as of June 30, 2024. Beyond manufacturing, the company provides engineering, procurement and construction (EPC) solutions, operations and maintenance (O&M) services, and operates as an independent power producer (IPP). As of June 30, 2024, the company operates five manufacturing facilities all located in Hyderabad, Telangana, India through eight subsidiaries. The company generates revenue from domestic sales (86.01% in FY2024) and export sales (13.99% in FY2024), with revenue from operations reaching ₹31,437.93 million in FY2024 compared to ₹14,285.34 million in FY2023.
Company Analysis
from RHPPremier Energies Limited is an integrated solar cell and module manufacturer with EPC solutions, O&M services, and independent power producer operations across India.
Premier Energies Limited is an integrated solar photovoltaic manufacturer incorporated in India in 1995 as Premier Solar Systems Private Limited, renamed to Premier Energies Limited in 2019. The company manufactures solar cells and modules using monocrystalline technology, with an annual installed capacity of 2 GW for cells and 4.13 GW for modules as of June 30, 2024. Beyond manufacturing, the company provides engineering, procurement and construction (EPC) solutions, operations and maintenance (O&M) services, and operates as an independent power producer (IPP). As of June 30, 2024, the company operates five manufacturing facilities all located in Hyderabad, Telangana, India through eight subsidiaries. The company generates revenue from domestic sales (86.01% in FY2024) and export sales (13.99% in FY2024), with revenue from operations reaching ₹31,437.93 million in FY2024 compared to ₹14,285.34 million in FY2023.
Objects of the Issue
- Investment in our Subsidiary, Premier Energies Global Environment Private Limited for part-financing the establishment of a 4 GW Solar PV TOPCon Cell and 4 GW Solar PV TOPCon Module manufacturing facility in Hyderabad, Telangana, India ₹9,686.03 million p.29
- General corporate purposes p.29
- Investment in subsidiary for part-financing the Project ₹9,686.03 million proposed for the Project p.74
- General corporate purposes p.74
- Investment in our Subsidiary, Premier Energies Global Environment Private Limited for part-financing the establishment of a 4 GW Solar PV TOPCon Cell and 4 GW Solar PV TOPCon Module manufacturing facility in Hyderabad, Telangana, India ₹9,686.03 million (out of Net Proceeds) p.143
- General corporate purposes [●] p.143
- Investment in subsidiary Premier Energies Global Environment Private Limited for expansion of manufacturing capacities in the form of a 4 GW TOPCon cell line and 4 GW solar module line p.76
- General corporate purposes p.158
- Funding capex for Unit VI - 4,000 MW TOPCon solar cell line and 4,000 MW TOPCon solar module line establishment and commissioning p.278
- This Part 8 contains financial statements and does not disclose the specific objects of the offer/uses of proceeds
- Investment in Subsidiary PEGEPL for part-financing the establishment of the Project (solar cell and module manufacturing facility) ₹9,686.03 million from Net Proceeds out of total estimated project cost of ₹33,583.29 million p.447
Issue Structure
- Total Issue
- Up to [●] Equity Shares of face value of ₹1 each, aggregating up to ₹[●] million
- Fresh Issue
- Up to [●] Equity Shares of face value of ₹1 each aggregating up to ₹12,914 million
- Offer for Sale
- Up to 34,200,000 Equity Shares of face value of ₹1 each aggregating up to ₹[●] million by the Selling Shareholders
- Price Band
- [●] per Equity Share
- Lot Size
- [●] Equity Shares
- Face Value
- ₹1 each
Business Model
Revenue generation through sale of manufactured solar cells and modules (86.80% of FY2024 revenue from operations), sale of traded goods including solar accessories and silicon wafers (8.21%), income from construction and project-related EPC contracts (4.73%), and revenue from power supply operations (0.12%). The company sells primarily to domestic customers including large players like Continuum Green Energy, NTPC, Shakti Pumps, and TATA Power Solar Systems.
Business Segments
SWOT Analysis
- • Integrated solar manufacturer with significant installed capacity(p.26)
- • Diversified revenue streams beyond manufacturing(p.26)
- • Growing revenue trajectory with profitability achieved(p.30)
- • Improved profitability and cash generation(p.46)
- • Multiple manufacturing facilities with owned land(p.44)
- • Advanced manufacturing technology with high capacity output(p.50)
- • Diversified customer base across domestic and export markets(p.60)
- • Strong revenue growth trajectory and profitability improvement(p.58)
- • Solid credit rating support access to capital(p.76)
- • Strong revenue growth trajectory with significant Q1 FY2025 performance(p.107)
- • Established manufacturing capacity and multi-facility operations(p.149)
- • Profitability and cash generation capability(p.107)
- • Long-standing operational history with technology transition capability(p.149)
- • Integrated solar cell and module manufacturer with significant market position(p.163)
- • Second-largest integrated manufacturer in India with high installed capacity(p.207)
- • Diversified customer base with both domestic and international reach(p.163)
- • Long track record and experience in solar manufacturing(p.163)
- • Experienced promoter-led senior management team(p.163)
- • Dominant position in Indian solar cell exports to USA(p.211)
- • Strong financial performance with improving profitability(p.166)
- • Second largest integrated solar cell and module manufacturer in India with 2 GW cell and 4.13 GW module capacity(p.243)
- • Long 29-year track record in solar module manufacturing providing brand recognition and credibility(p.245)
- • Largest Indian exporter of solar cells to the US with approximately 100% market share in FY2024(p.244)
- • Backward integration providing cost control, quality control, and access to DCR market(p.244)
- • Technical expertise and R&D capability with 30-member research and development team(p.246)
- • Strong and diversified customer base across 23 Indian states with robust order book of ₹59,265.65 million(p.242)
- • Recognition of module quality with PVEL top performer status in 2023 and 2024(p.245)
- • Experienced Promoter-led management team with combined 29 years solar industry experience(p.249)
- • Vertical integration in solar manufacturing(p.289)
- • Significant manufacturing capacity expansion(p.289)
- • Government-backed funding for capacity expansion(p.283)
- • Insurance coverage for assets(p.272)
- • Established track record and awards(p.290)
- • Integrated solar cell and module manufacturing with 29 years of industry experience(p.405)
- • Significant installed manufacturing capacity expansion (2 GW cells, 4.13 GW modules as of June 2024)(p.405)
- • DCR compliance and ALMM approval enabling participation in government schemes(p.409)
- • Strong order book of ₹59,265.65 million as of July 31, 2024(p.409)
- • Significant revenue growth from ₹7,428.71 million (Fiscal 2022) to ₹31,437.93 million (Fiscal 2024)(p.407)
- • Diversified customer base reducing concentration risk, with top 10 customers representing 67.03% of Fiscal 2024 revenue(p.410)
- • High customer concentration risk(p.42)
- • Dependence on only two product types(p.42)
- • Significant losses in prior fiscal years(p.44)
- • Negative cash flows in recent periods(p.46)
- • Under-utilization of manufacturing capacity(p.48)
- • Subsidiary losses including future capital recipient(p.45)
- • High contingent liabilities relative to net worth(p.31)
- • Significant working capital requirements and operational leverage(p.50)
- • High attrition rate among workforce(p.54)
- • Untraced historical corporate records and past regulatory non-compliance(p.54)
- • Missing regulatory approvals and compliance gaps(p.94)
- • High dependency on supplier relationships with no long-term contracts(p.66)
- • High debt burden relative to equity base(p.106)
- • Exposure to large contingent liabilities and guarantees on Project Loan(p.146)
- • Heavy dependence on subsidiary and concentration in single manufacturing location(p.149)
- • Unexercised employee stock options creating potential dilution(p.139)
- • Significant capital expenditure commitments and project implementation risk(p.154)
- • High leverage with debt-to-equity ratio of 1.43 as of Q1 FY2025(p.166)
- • Significant dependence on imported raw materials subject to exchange rate risk(p.155)
- • Reliance on capital goods imports with customs duty exposure(p.155)
- • High capital intensity requiring significant ongoing investment(p.207)
- • High debt-to-equity ratio of 2.18 as of FY2024, indicating significant financial leverage(p.235)
- • Significant dependence on imported raw materials with 48.47% of purchases from China in FY2024(p.262)
- • Low capacity utilization of newly commissioned units affecting operational efficiency(p.259)
- • Concentration of revenue in top customers with top 10 customers accounting for 67.03% of FY2024 revenue(p.247)
- • Complex and capital-intensive solar cell manufacturing requiring 3-4 times higher capital than module manufacturing(p.222)
- • Heavy reliance on IREDA funding(p.272)
- • Dependence on government policies and schemes(p.283)
- • Leased branch office premises with near-term expiry(p.274)
- • Substantial warranty obligations(p.273)
- • Heavy debt burden(p.293)
- • High dependence on key customers, with largest customer representing 10.63% of Fiscal 2024 revenue(p.410)
- • Significant debt burden with debt-to-equity ratio of 1.43x as of June 30, 2024(p.401)
- • Heavy reliance on imported raw materials and machinery, particularly from China(p.408)
- • Exposure to customer concentration and order book execution risks(p.409)
- • CSR compliance shortfall in current period with ₹4.80 million unmet requirement(p.379)
- • Dependence on limited customer segments with concentration risk(p.431)
- • Significant inventory holdings creating working capital pressure(p.436)
- • High finance costs relative to operational profitability(p.437)
- • Substantial capital commitments and contingent liabilities(p.446)
- • High debt-to-equity ratio indicating leverage concerns(p.451)
- • Increased provision for doubtful debts and warranty(p.434)
- • Pending regulatory approvals across multiple Indian states(p.466)
- • Limited trademark portfolio with one mark expiring soon(p.467)
- • Rapid growth in India's solar manufacturing capacity(p.27)
- • Strong government support for renewable energy(p.27)
- • Expansion into advanced TOPCon technology(p.50)
- • Economies of scale from capacity expansion(p.50)
- • Global growth in solar demand(p.50)
- • Expansion of manufacturing capacity and product mix shift(p.60)
- • Growing export markets and international expansion(p.62)
- • Government support through incentive schemes and subsidies(p.79)
- • Growing domestic demand driven by government renewable energy initiatives(p.60)
- • Strong order backlog supporting revenue visibility(p.67)
- • Government support for domestic solar manufacturing(p.149)
- • Expansion into advanced TOPCon technology manufacturing(p.149)
- • Tax incentive availability for new manufacturing operations(p.148)
- • Access to project financing from development financial institutions(p.148)
- • India's ambitious 300 GW solar capacity target by CY2030(p.190)
- • Rapid growth in domestic solar module consumption market(p.208)
- • Strong export opportunity driven by China+1 strategy(p.211)
- • Expansion potential through 4 GW TOPCon cell and module manufacturing facilities(p.76)
- • Favorable government incentive schemes including PLI and DCR policies(p.201)
- • Expected reduction in import dependency creating market share gains(p.209)
- • Expanding US market demand with minimal domestic cell production and growing anti-China sentiment(p.230)
- • Grid Connected Solar Rooftop Programme expected to generate 25-30 GW installation opportunities over 2-3 years(p.250)
- • DCR demand outpacing production capacity with strong government support for domestic manufacturing(p.251)
- • Global solar capacity expected to grow from 1.4 TW in CY2023 to 3.18 TW by CY2027(p.226)
- • Strategic backward integration into wafers and ingots to improve supply chain resilience and cost efficiency(p.250)
- • Planned US manufacturing joint venture with Heliene USA Inc. to establish TOPCon cell manufacturing(p.250)
- • TOPCon technology transition offering higher efficiency (24.5-25.2%) than current PERC cells (23.2-23.7%)(p.245)
- • Expanding renewable energy mandate in India(p.282)
- • Government support for domestic solar manufacturing(p.281)
- • Rooftop solar promotion(p.284)
- • Agricultural solar programs(p.283)
- • Potential capacity expansion with PLI support(p.283)
- • Government of India's domestic content requirement (DCR) creating market opportunity for locally-produced cells and modules(p.409)
- • Planned capacity expansion with 1 GW TOPCon cell line expected in Fiscal 2025 and additional 8 GW planned expansion(p.405)
- • Government schemes and incentives supporting domestic solar adoption including CPSU, PM-KUSUM, and Grid Connected Rooftop Programme(p.409)
- • Expected continued market growth driven by government targets and clean energy demand(p.405)
- • Indian Railways electrification opportunity for solar products(p.409)
- • Capital subsidies available from state and central governments including M-SIPS(p.409)
- • Government support and renewable energy policy initiatives(p.431)
- • Significant export market expansion potential(p.435)
- • Capacity expansion with new manufacturing lines(p.435)
- • Shift to higher-margin monocrystalline PERC technology(p.435)
- • Strong revenue growth trajectory and operating leverage(p.434)
- • Customer base expansion across segments(p.430)
- • Demand concentration risk for solar products(p.43)
- • Technological obsolescence of manufacturing facilities(p.50)
- • Geographic concentration of operations(p.44)
- • Industry oversupply and demand volatility(p.47)
- • Price volatility and cost competition(p.43)
- • Competitive technology displacement(p.43)
- • Intense competition from domestic and international manufacturers(p.52)
- • Raw material price volatility and import duty risks(p.68)
- • Declining solar module and cell prices reducing margins(p.70)
- • Customs duty increases on imported solar components(p.79)
- • Export market risks including regulatory and geopolitical uncertainties(p.63)
- • Technology obsolescence and rapid innovation requirements(p.58)
- • Supply chain disruptions and dependency on third-party transportation(p.58)
- • UFLPA compliance requirements limiting U.S. market access(p.64)
- • Foreign exchange volatility impacting equipment costs and returns(p.99)
- • Regulatory restrictions on foreign investment(p.100)
- • Risk of capital gains tax implications for foreign shareholders(p.99)
- • Project implementation delays and cost overruns(p.76)
- • Sanctioned customer transaction risks with restricted jurisdictions(p.102)
- • Stock price volatility and liquidity risk for new public shareholders(p.99)
- • Regulatory risk from potential US duties on circumventing solar products(p.211)
- • US Inflation Reduction Act encouraging domestic manufacturing reducing export demand(p.209)
- • Risk of unanticipated delays and cost overruns in capital expansion(p.76)
- • Commodity price volatility and input cost fluctuations(p.156)
- • Intense competition from larger global manufacturers with economies of scale(p.206)
- • Potential adverse impact from new trade policies and government regulations(p.211)
- • Significant reliance on imported cells with 85% import dependency in FY2022, expected to remain at 45% by FY2028(p.212)
- • Exposure to polysilicon price volatility, with prices increasing from $6.8/Kg to $43/Kg between July 2020 and November 2021(p.212)
- • Intense competition with presence of more than 100 module manufacturers and high competitive intensity in module market(p.224)
- • Pricing pressure across solar PV value chain due to reverse bidding in government tenders(p.223)
- • Risk of supply chain disruption due to potential Chinese export restrictions on solar manufacturing tools(p.223)
- • Frequent policy changes in India including suspension and reinstatement of ALMM requirements(p.223)
- • Wafer price pressures with manufacturers selling below production costs and p-type prices dropping(p.213)
- • Regulatory risk from ALMM compliance(p.281)
- • Customs duty on solar components(p.287)
- • Cyclicality in renewable energy projects(p.280)
- • Industrial policy dependence in Telangana(p.284)
- • Environmental compliance requirements(p.284)
- • High import duties on solar cells and pending duty on solar glass increasing material costs(p.408)
- • Vulnerability to import restrictions and trade policy changes affecting supply chain(p.408)
- • Foreign exchange volatility affecting imported materials and international operations(p.396)
- • Intense competition in solar manufacturing affecting pricing and margins(p.411)
- • Dependence on government policies and regulatory stability for business sustainability(p.409)
- • Unhedged foreign currency exposure of ₹2,197.24 million as of June 30, 2024(p.396)
- • Dependence on imported raw materials and foreign currency exposure(p.436)
- • Foreign exchange volatility affecting operations(p.455)
- • Global demand for competing technologies (TOPCon modules)(p.431)
- • Regulatory compliance and license requirements(p.464)
- • Interest rate risk on floating rate debt(p.455)
- • Climate change impact on power generation assets(p.435)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Surender Pal Singh Saluja | Promoter | 4.93% | — |
| Chiranjeev Singh Saluja | Promoter | 81.92% | — |
| South Asia Growth Fund II Holdings LLC | Promoter Group | 20.87% | — |
| South Asia EBT Trust | Promoter Group | 0.13% | — |
| Chiranjeev Singh Saluja | Promoter | 64.84% | — |
| Surender Pal Singh Saluja | Promoter | 3.90% | [●] |
| Chiranjeev Singh Saluja | Promoter | 64.84% | [●] |
| Chiranjeev Singh Saluja | Promoter/Managing Director/Selling Shareholder | — | — |
| South Asia Growth Fund II Holdings LLC | Investor Selling Shareholder | — | — |
| South Asia EBT Trust | Investor Selling Shareholder | — | — |
| Surender Pal Singh Saluja | Promoter | — | — |
| Chiranjeev Singh Saluja | Promoter | — | — |
| Surender Pal Singh Saluja | Promoter/Chairman and Whole-Time Director | 3.90% | — |
| Chiranjeev Singh Saluja | Promoter/Managing Director | 64.84% | — |
| Chiranjeev Singh Saluja | Promoter | 81.92% | — |
| Surenderpal Singh Saluja | Promoter | 4.93% | — |
| Surenderpal Singh Saluja | Chairman & Whole Time Director / Promoter | — | — |
| Chiranjeev Singh Saluja | Managing Director / Promoter | — | — |
| Surender Pal Singh Saluja | Promoter | — | — |
| Chiranjeev Singh Saluja | Promoter | — | — |
| South Asia Growth Fund II Holdings LLC and South Asia EBT Trust | Promoter Group | — | 88,000,000 Equity Shares (87,436,800 to South Asia Growth Fund II Holdings LLC and 563,200 to South Asia EBT Trust) following conversion of CCDs on August 16, 2024 |
| South Asia Growth Fund II Holdings LLC | Selling Shareholder | — | — |
| South Asia EBT Trust | Selling Shareholder | — | — |
| Chiranjeev Singh Saluja | Selling Shareholder | — | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.