ACME Solar Holdings, an Indian renewable energy developer, has decided to re-evaluate its proposed Initial Public Offering (IPO). The company is going to downsize the IPO from ₹22 billion ($0.32 billion) to ₹10-15 billion ($147-219million), according to a Reuters report.
Last year in October, Mercom reported ACME’s filing of draft red herring prospectus with the Securities and Exchange Board of India (SEBI) for a ₹22,000 million (~$336.86 million) IPO at a face value of ₹10 (~$0.15) per share. ICICI Securities, Citigroup Global Markets India, Deutsche Equities India and Link Intime India Private Limited were to manage its IPO. Presently, Deutsche Equities India has made its exit from the consortium.
ACME is planning to sell a portion of its assets and presently resubmit the draft prospectus with the revised numbers to SEBI. The reason for such a situation is probably the reluctance of investors to pay the valuation proposed by ACME, according to Reuters.
The IPO will only constitute ACME’s primary shares. Earlier, it was considering a Pre-IPO placement of up to 5,222,079 equity shares to certain investors for an amount not exceeding ₹5,000 million (~$76.56 million).
According to Mercom’s India Solar Project Tracker, ACME has installed solar projects totaling ~1,184 MW and has ~1,080 MW of projects under development.
In May 2018, ReNew Power, another leading renewable energy project developer in the country, had filed draft papers with the Securities and Exchange Board of India (SEBI) to float an Initial Public Offering (IPO). The IPO could raise more than $1 billion and may be one of India’s biggest listings this year.
In a recent interview with Mercom, Aditya Aggarwal, the director at Vector Green Energy Private Limited, commented that the Indian public market presently may not have the appetite for more than 2-3 large listings within the renewable space. Therefore, the companies that have made progress in their listing plans may enjoy a first mover advantage.
Nitin is a staff reporter at Mercomindia.com and writes on renewable energy and related sectors. Prior to Mercom, Nitin has worked for CNN IBN, India News, Agricultural Spectrum and Bureaucracy Today. He received his bachelor’s degree in Journalism & Communication from Manipal Institute of Communication at Manipal University and Master’s degree in International Relations from Jindal School of International Affairs. More articles from Nitin Kabeer