ACME Solar Files for ₹30 Billion IPO

ACME Solar, an India-based renewable energy developer, has filed its draft red herring prospectus with the Securities and Exchange Board of India for an initial public offering (IPO) worth ₹30 billion (~$360 million) at ₹2 (~$0.024) per share.

The proposed IPO consists of a fresh issue of shares up to ₹20 billion (~$240 million) and an offer for sale of up to ₹10 billion (~$ 12 million). The company may also consider a pre-IPO placement of up to ₹4 billion (~$48 million), which would reduce the size of the fresh issue.

ACME Solar plans to use ₹15 billion (~$180 million) from the net proceeds to repay or prepay certain outstanding borrowings of its subsidiaries, with the remainder allocated for general corporate purposes.

Back in 2017, it filed for a ₹22 billion (~$263 million) IPO, which it later downsized to ₹10-15 billion (~$120-180 million)

As of March 31, 2024, ACME Solar had an operational project capacity of 13.2 GW of solar power projects. The company also has 1.65 GW of projects under construction and an additional 2.38 GW of awarded projects in various stages of development, including solar, wind, hybrid, and firm and dispatchable renewable energy projects.

In the fiscal year 2024, the company reported a revenue of ₹13.19 billion (~$158 million), representing a 1.88% increase from the previous year, and posted a profit of ₹6.98 billion (~$83.8 million), swinging from a loss in the year prior.

The firm develops, builds, owns, operates, and maintains utility-scale renewable energy projects through its in-house engineering, procurement, and construction division and operation and maintenance team.

The offer is being made through the book-building process with the following allocations: at least 75% for qualified institutional buyers, up to 15% for non-institutional investors, and up to 10% for retail individual investors.

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


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