| Price | Lot Size | Issue Date | Issue Size |
|---|---|---|---|
| ₹ 275 to ₹ 289 | 51 | 06h Nov, 2024 – 08h Nov, 2024 | ₹ 2,900.00 Cr |
About ACME Solar Holdings Limited IPO
ACME Solar Holdings, founded in 2015 under the ACME Group, was established to consolidate and expand the Group’s renewable energy business in India. ACME Solar is a prominent renewable energy company in India, managing a diversified portfolio that includes solar, wind, hybrid, and firm and dispatchable renewable energy (FDRE) projects. Recognized as one of India’s largest independent power producers (IPPs), it ranks among the top ten regarding operational capacity. The company is involved in the development, construction, ownership, operation, and maintenance of large-scale renewable energy projects. It generates revenue by selling electricity to various buyers, including entities backed by central and state governments. Since its inception, the ACME Group has developed and commissioned 2,719 MW (3,668 MWp) of solar power projects. Its current operational capacity includes 1,340 MW (1,826 MWp) of solar projects, with additional contracted projects under construction totaling 3,250 MW—comprising 1,500 MW (2,192 MWp) of solar, 150 MW of wind, 1,030 MW of hybrid, and 570 MW of FDRE projects. Additionally, the company has an awarded project capacity of 1,730 MW under construction, consisting of 600 MW (870 MWp) of solar, 450 MW of hybrid, and 680 MW of FDRE projects. Over 80% of ACME’s operational and in-progress projects are located in high-irradiance states such as Gujarat, Rajasthan, Madhya Pradesh, Andhra Pradesh, Karnataka, and Tamil Nadu, which are ideal for solar installations.
Objective of the ACME Solar Holdings Limited IPO
The company proposes to utilize the net proceeds towards funding the following objects:
- Investment in its Subsidiaries for repayment/prepayment, in full or in part, of certain outstanding borrowings availed by the Subsidiaries; and
- General corporate purposes.
Rationale To Invest In ACME Solar Holdings Limited IPO
Strong industry positioning and diversified portfolio drive growth and control
ACME Solar Holdings is India’s largest renewable energy independent power producer (IPP), ranking among the top 10 players within the segment for its operational capacity. The company has an aggregate operational project capacity of 1,340 MW (1,826 MWp), a contracted project capacity of 3,250 MW under construction and an additional 1,730 MW awarded project capacity in the construction phase. It has an expansive portfolio of projects diversified across different renewable energy technologies spread across 11 states of India that offer more solar irradiance than other parts of India, which makes it ideal for installing solar projects. Additionally, states like Gujarat, Maharashtra, Karnataka, Tamil Nadu and Andhra Pradesh have excellent wind and solar potential, providing strong prospects for hybrid power supply projects where ACME already has operational setups. The company is majorly invested in solar projects, which comprise more than 54% of its portfolio, and the second highest is the hybrid project, followed by the FDRE and wind projects. In line with the country’s push for round-the-clock clean power generation through hybrid tenders, which integrate solar, wind, and storage technologies, ACME has recently acquired additional projects from ACME Cleantech. These projects have a contracted capacity of 2,080 MW, comprising 830 MW of hybrid and 1,250 MW of FDRE projects. As part of this acquisition, ACME Solar entered into a share purchase and shareholder agreement for 450 MW of capacity with ACME Cleantech and associated SPVs, where it acquired 49% of the equity share capital of such SPVs. The company exercises control over SPVs in this agreement and is responsible for the relevant project’s overall development, commissioning, and funding.
End-to-end value chain and in-house teams improve efficiency
ACME Solar Holdings has a fully integrated in-house approach for executing its renewable projects, managing each phase from signing the PPA to commercial operations and ongoing maintenance. The company’s project development team is well-experienced in the renewable energy industry and ensures projects are completed in a timely and cost-efficiently. ACME’s comprehensive value chain capabilities cover all aspects, including tendering and bidding, land acquisition, obtaining necessary approvals, financial closure, design engineering, procurement and construction and operations and maintenance. The company carefully selects renewable energy auctions, bidding only where it aligns with favorable policies, incentives, and credit history of the off-takers and where there is access to evacuation infrastructure, transmission systems, water, roads and communications networks and other ancillary infrastructure, competitive intensity, capacity on offer and restrictions on maximum/minimum bid quantity. Additionally, ACME’s land acquisition team is well-versed in local practices, facilitating their land acquisition without disruptions. Due to its scale, size, and experience, the company successfully maintains a full-fledged EPC team that handles project-specific EPC-related activities. The in-house O&M team monitors all plants using a supervisory control and data acquisition (SCADA) system, which enables real-time performance tracking through networked data communications, computers, and a graphical interface to supervise its machines and processes. The company’s dedicated technology team evaluates new technologies and utilizes specialized software to help manage in-house engineering from bidding to final project execution. This integrated approach allows ACME to maintain control over its processes and keep track of its costs, ensuring it completes its projects on time.
Valuation of ACME Solar Holdings Limited IPO
ACME Solar Holding is a renewable energy company in India with a diverse portfolio spanning solar, wind, hybrid and firm and dispatchable renewable energy (“FDRE”) projects. ACME builds, owns, operates, and maintains utility-scale renewable energy projects through its dedicated in-house engineering, procurement and construction (EPC) division and operation and maintenance team. The company generates revenue by selling electricity to various off-takers, including central and state government-backed entities. Renewable energy installations in India have increased to approximately 200 GW, with renewable energy generation, including large hydro, now comprising about 44% of the country’s total installed capacity. ACME has an extensive portfolio across various renewable energy technologies and is constantly growing its portfolio by adding to its capacity. It has an in-house approach to end-to-end execution, completion and maintenance of its projects. This helps the company improve its efficiency and manage costs, boosting revenue and strengthening reliability. On the financial front, ACME has demonstrated remarkable growth, with its PAT increasing from Rs. 620 million in FY22 to Rs. 6,978 million in FY24. Additionally, the company achieved an ROE of 38.83% in FY24. The current issue is priced at a P/E ratio of 23.03x on the upper price band based on FY24 earnings, which is relatively lower than its peers. Therefore, we recommend a SUBSCRIBE rating with a medium to long-term investment perspective for this issue.
What is the ACME Solar Holdings Limited IPO?
ACME Solar Holdings IPO is a book built issue of Rs 2,900.00 crores. The issue is a combination of fresh issue of 8.29 crore shares aggregating to Rs 2,395.00 crores and offer for sale of 1.75 crore shares aggregating to Rs 505.00 crores. Login to your account now.
How to apply for the ACME Solar Holdings Limited IPO through StoxBox?
To apply for the ACME Solar Holdings Limited IPO through StoxBox one can apply from the website and also from the app. Click here
When will the ACME Solar Holdings Limited IPO open?
ACME Solar Holdings Limited IPO is opening on 06th November 2024. Apply Now
What is the lot size of the ACME Solar Holdings Limited IPO?
The Lot Size of ACME Solar Holdings Limited IPO is 51 equity shares. Login to your account now
When is the ACME Solar Holdings Limited IPO allotment date?
The allotment Date for ACME Solar Holdings Limited IPO is 11th November 2024. Login to your account now.
When is the ACME Solar Holdings Limited IPO listing date?
The listing Date for ACME Solar Holdings Limited IPO is 13th November 2024. Login to your account now
What is the minimum investment required for the ACME Solar Holdings Limited IPO?
In the Retail segment the minimum investment required is Rs. 14,739. Login to your account now
What is the maximum investment allowed for theACME Solar Holdings Limited IPO?
In the Retail segment the maximum investment requirement is Rs. 191,607. Login to your account now
What are the risks associated with investing in the ACME Solar Holdings Limited IPO?
- The company may not be able to grow its portfolio of renewable energy power projects as it relies on highly competitive renewable energy power project auctions. Therefore, the company significantly depends on successfully executing our Under Construction Awarded Projects and Under Construction Contracted Projects. If it is unsuccessful in implementing its future projects, the business and results of operations may be adversely impacted.
- The company has prior experience commissioning solar power projects but does not have any experience commissioning wind, hybrid, FDRE power projects, or closed-loop pump storage projects. Without previous experience in such projects, delays and unexpected costs could occur, affecting the project’s viability and profitability.
- The company’s major operational projects are located in Andhra Pradesh, Rajasthan and Telangana, contributing to a significant portion of its revenue. Any change in governmental policies or occurrence of natural disasters within any of these states may impact its business, results of operations and cash flows.
When will the ACME Solar Holdings Limited IPO shares be credited to my Demat account?
The ACME Solar Holdings Limited IPO be credited to the account on allotment date which is 12th November 2024. Login to your account now
Where can I find the ACME Solar Holdings Limited IPO prospectus?
The prospectus of ACME Solar Holdings Limited IPO prospectus can be find on the website of SEBI, NSE and BSE
What are the important dates related to ACME Solar Holdings Limited IPO?
| IPO Open Date | Wednesday, November 6, 2024 |
| IPO Close Date | Friday, November 8, 2024 |
| Basis of Allotment | Monday, November 11, 2024 |
| Initiation of Refunds | Tuesday, November 12, 2024 |
| Credit of Shares to Demat | Tuesday, November 12, 2024 |
| Listing Date | Wednesday, November 13, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on November 8, 2024 |
