Tue Nov 05 05:44:54 UTC 2024: ## ACME Solar Holdings to Raise ₹2900 Crore Through IPO
**Gurugram-based renewable energy producer, ACME Solar Holdings Limited, has fixed the price band for its initial public offering (IPO) at ₹275-289 per share.** The IPO will open for subscription on November 6th and will close on November 8th. The company aims to raise ₹2900 crore through the public issue.
The IPO comprises of ₹2395 crore fresh equity shares and ₹505 crore through an offer for sale (OFS) by ACME Cleantech Solutions, the sole promoter and shareholder of the company.
The company has reserved ₹10 crore worth of shares for its employees. The IPO is set to open for anchor investors on November 5th, with 75% of the net offer reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors, and the remaining 10% for retail investors.
**The share allotment is expected on November 11th, with equity shares credited to eligible investor Demat accounts by November 12th. Trading of ACME Solar shares on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) will commence on November 13th.**
**ACME Solar Holdings plans to utilize ₹1795 crore of the IPO proceeds towards repayment of debt, with the remaining amount to be used for general corporate purposes. The company had a total debt of ₹9,891.7 crore as of August 2024.**
**Nuvama Wealth Management, ICICI Securities, JM Financial, Kotak Mahindra Capital Company, and Motilal Oswal Investment Advisors are acting as the book running lead managers for the issue.**
ACME Solar Holdings, established in 2015, is one of the largest renewable energy independent power producers (IPPs) in India. The company has developed 2719MW (3668MWp) solar power projects since its inception. Its operational project capacity stands at 1340MW (1,826MWp), while under-construction contracted projects are at 3250MW and under-construction awarded projects at 1730MW.
**Financially, ACME Solar recorded a consolidated profit of ₹697.8 crore in FY24, compared to a loss of ₹3.17 crore in the previous year.** The revenue grew by a mere 1.9% to ₹1319.3 crore from ₹1295 crore in the same period.
**In the first quarter ended June 2024, the company reported a net profit of ₹1.4 crore, a significant drop of 98.3% from ₹82.3 crore in the previous year. The company’s revenue declined by 16.1% year-on-year to ₹309.6 crore.**
ACME Solar Holdings faces competition from Adani Green Energy, the only listed peer. The company is considered a pioneer in the solar IPP business in India and aims to play a significant role in the country’s transition towards renewable energy sources.
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