Upcoming IPO: ACME Solar Holdings Submits Draft Papers For Maiden Listing Worth Rs 3,000 Crore

The maiden offer also sets aside a subscription for eligible employees. The Gurugram-based firm could consider an issue of securities worth up to Rs 400 crore as part of a pre-IPO placement

ACME Solar Holdings Ltd submitted draft papers for its initial public offering (IPO) with the Securities and Exchange Board of India (SEBI) to raise Rs 3,000 crore. The renewable energy firm filed the preliminary papers for its maiden offer.

The draft red herring prospectus (DRHP) revealed that the proposed IPO comprises of a fresh issue of shares worth Rs 2,000 crore and an offer-for-sale (OFS) of Rs 1,000 crore, reported PTI.

The maiden offer also sets aside a subscription for eligible employees. The Gurugram-based firm could consider an issue of securities worth up to Rs 400 crore as part of a pre-IPO placement. 

The issue is being managed by ICICI Securities, JM Financial, Nuvama Wealth Management, Motilal Oswal Investment Advisors, and Kotak Mahindra Capital Company as the book-running lead managers.

However, if the placement is completed, it would reduce the size of the fresh issue. The firm further intends to utilise the funds raised from the offer worth Rs 1,500 crore towards debt payment. Another portion of funds would be used towards general corporate purposes.

The renewable firm is involved in developing, operating, and maintaining utility-scale clean energy projects via its in-house engineering, procurement, and construction (EPC) division and its operation and maintenance (O&M) team.

The company earns by selling electricity to several off-takers, such as central and state entities backed by the government. As of March end 2024, around 18 out of 28 operational projects of the company were situated in Andhra Pradesh, Telangana, and Rajasthan. This represented about 85 per cent of the overall operational project capacity.

The company was also one of the firms that started early on in the solar-independent power producer industry in the country. It began its first solar power plant in the 2011-12 fiscal year.

During the 2023-24 fiscal year (FY24), the company logged a consolidated revenue from operations of Rs 1,319.25 crore, gaining 1.88 per cent from Rs 1,294.90 crore in the preceding 2022-23 fiscal year (FY23).