Solar energy company ACME Solar Holdings’ ₹29 billion (~$344.85 million) Initial Public Offering (IPO) will be launched on November 6, 2024, and close on November 8, 2024.

The price band has been set at ₹275-289 (~$3.27-3.43) per equity share with a face value of ₹2 (~$0.023). Bids can be made for a minimum of 51 shares or in multiples of 51 equity shares.

The IPO consists of a fresh issue of 1,1975 million shares at ₹2 (~$0.023)/share, amounting to ₹23.95 billion (~$284.80 million). It also includes an offer for sale of 2,525 million shares at ₹2 (~$0.023)/ shares amounting to ₹5.05 billion (~$60.05 million) from ACME Cleantech Solutions.

The offer is being made through the book-building process. Qualified institutional buyers will be allowed at least 75% of the net offer, and non-institutional buyers will be allotted at least 15%.

ACME Solar proposes to use ₹17.95 billion (~$213.45 million) from the IPO proceeds for investment in its subsidiaries to repay/prepay, in whole or in part, of certain outstanding borrowings availed by its subsidiaries from the net proceeds and the remaining will be used for general corporate purposes.

In its IPO prospectus, ACME said its business depends on ten off-takers, who are dependent on its promoter, ACME Cleantech, for raw material supplies. The company incurred a loss of ₹31.74 million (~$377,439) in FY 2023 and a profit of ₹6.98 billion (~$83 million) in FY 2024.

As of August 31, 2024, the company has an outstanding borrowing (fund-based) of ₹ 98.92 billion (~$1.17 billion) on a consolidated basis.

The company has an aggregate under-construction contracted capacity of 3,250 MW, and under-construction awarded capacity of 1,730 MW.

ACME Solar Holdings was one of the five companies to win SJVN’s auction held in August 2024 to set up 1.2 GW interstate transmission system-connected solar power projects.

In July 2024, the company won Solar Energy Corporation of India’s auction to set up 1,200 MW Inter-State Transmission System -connected solar power projects with 600 MW/1,200 MWh energy storage systems under Tranche XV.