ACME Solar Holdings Files for ₹3000 Crore IPO to Expand Renewable Energy Footprint

ACME Solar Holdings has submitted a draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI). The company, which produces renewable energy and is based in Grugram, wants to raise ₹3000 crore by way of an initial public offering (IPO). An offer for sale (OFS) of up to ₹1000 crore by the founder company, ACME Cleantech Solutions Private Limited, and a fresh issue of shares valued at ₹2000 crore are included in the IPO, according to a July 3 Bloomberg report.
ACME Solar Holdings IPO

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The proceeds of the new issuance will primarily be used to settle some outstanding debts held by the company’s subsidiaries, with ₹1,500 crore set aside for this purpose. The remaining proceeds will be utilized for general corporate purposes.

A reservation for subscription by qualified employees is also included in the initial public offering (IPO), which has a face value of ₹2 per equity share. Those who bid in the employee reservation section will receive a discount. Additionally, ACME Solar Holdings may consider a pre-IPO placement of specified securities up to ₹400 crore. According to this, the fresh issue size will also be reduced if this placement is completed.

ACME Solar Holdings Files for ₹3000 Crore IPO

The offer will be made through a book-building procedure, with the following allocation: up to 10% will be made available to retail individual investors, up to 15% to qualified institutional buyers, and at least 75% of the net offer will be available for qualified institutional buyers on a proportionate basis.

Nuvama Wealth Management Limited, ICICI Securities Limited, JM Financial Limited, Kotak Mahindra Capital Company Limited, and Motilal Oswal Investment Advisors Limited are the book-running lead managers for the IPO. The issue registrar for the IPO is KFin Technologies Limited.

About ACME Solar Holdings:
ACME Solar Holdings, incorporated in 2015, is a significant participant in the renewable energy industry in India. The company operates a diversified portfolio of solar, wind, hybrid, and firm projects as well as dispatchable renewable energy (FDRE) projects. In the field of renewable energy, ACME Solar Holdings is among the biggest independent power producers (IPPs) in India. It ranks among the top 10 in terms of operational capacity as of March 31, 2024, according to a CRISIL report. The company’s clientele includes several central and state government-backed entities that purchase the electricity generated by its projects.

For ACME Solar Holdings, this initial public offering (IPO) is a big step toward strengthening its financial position for future growth initiatives and expanding its market share in India’s renewable energy sector.

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