ACME Solar Holdings IPO: Price band, GMP, dates, among 10 things to know before subscribing to the issue

ACME Solar Holdings Limited’s initial public offering (IPO) is set to open for public subscription on Wednesday, November 6, and close on Friday, November 8. The renewable energy producer set the price band for the IPO at the range of ₹275 to ₹289 per equity share with a face value of ₹2 per share. 

The renewable energy company produces electricity from both solar and wind energy projects in India. ACME Solar specializes in the development, construction, ownership, operation and maintenance of large-scale renewable energy projects. They earn from selling electricity to various customers, including plants supported by the central and state governments.

ACME Solar aims to raise ₹2,900 crore from a fresh issue of ₹2,395 crore and an offer-for-sale (OFS) of equity shares worth ₹505 crore by the company’s promoter ACME Cleantech Solutions Private Ltd.

ACME Solar Holdings IPO — 10 things to know
 

1. ACME Solar Holdings IPO Issue Size: The Gurugram-based renewable electricity producer aims to raise ₹2,900 crore through a fresh issue and an offer-for-sale (OFS) component of equity shares with a face value of ₹2 per share. The lot size of the issue is 51 equity shares, and thereafter, it will be in multiples of 51 equity shares. 

2. ACME Solar Holdings IPO Issue Dates: The initial public offering is set to open for public subscription on Wednesday, November 6, and close on Friday, November 8.

3. ACME Solar Holdings IPO Listing Date: The IPO is tentatively expected to be allotted by Monday, November 11. The shares will likely be listed on the NSE and BSE on Wednesday, November 13.

4. ACME Solar Holdings IPO Anchor Round: The renewable energy company IPO’s anchor round is set to be held on Tuesday, November 5.

5. ACME Solar Holdings IPO Price Band: The company has set the price band for the public issue in the range of ₹275 to ₹289 per share with a face value of ₹2 per equity share. 

6. ACME Solar Holdings IPO Basis of Allotment: The public offer comprises a fresh issue of shares worth ₹2,395 and an offer-for-sale (OFS) of equity shares worth ₹505 crore by the promoter selling shareholding, ACME Cleantech Solutions Private Ltd.

7. ACME Solar Holdings IPO Reservation: The public issue has reserved not less than 75 per cent of the shares in the public issue for qualified institutional buyers (QIB), not more than 15 per cent for non-institutional Institutional Investors (NII), and not more than 10 per cent for the retail investor. The employee portion has been reserved equity shares aggregating up to ₹10 crore.

8. ACME Solar Holdings IPO Objective: The company aims to use the money raised from the public offer to repay or prepay, either partial or full outstanding loans obtained by the subsidiaries, as well as for general corporate needs, as per the draft documents. 

9. ACME Solar Holdings IPO GMP: The grey market premium (GMP) today for the IPO is ₹30. With the upper price band at ₹289, the public issue is estimated to be listed at ₹319, a 10.38 per cent rise, according to Investorgain.com. 

Grey market premium is the willingness of an investor to pay more for a public issue.

10. ACME Solar Holdings IPO’s Merchant Banker and Registrar: Nuvama Wealth Management Ltd, ICICI Securities Ltd, JM Financial Ltd, Kotak Mahindra Capital Company Ltd, and Motilal Oswal Investment Advisors Ltd are the book-runners for the ACME Solar Holdings IPO, with Kfin Technologies Ltd acting as the registrar for the offering.