Premier Energies Limited IPO Details Issue Price, Date, News, Allotment Status, GMP, Link, Updates

Premier Energies Limited IPO Company Profile: 

Premier Energies Limited, established in 1995 by Surender Pal Singh Saluja, is a leading solar cell and module manufacturer based in Hyderabad, India. It ranks as the country’s second-largest integrated producer in this sector, with an annual capacity of 2 GW for solar cells and 3.36 GW for solar modules. The company engages in manufacturing, EPC projects, independent power production, and O&M services. It caters to major clients like NTPC and TATA Power Solar and is a significant exporter to the U.S. Premier Energies has filed for an IPO to raise over INR 1,500 crore to expand its manufacturing capacity.

 

Premier Energies Limited IPO Business Operations:

Premier Energies Limited is a prominent player in India’s renewable energy sector, focusing on the integrated manufacturing of solar photovoltaic (PV) cells and modules. The company operates five advanced manufacturing facilities with a total annual capacity of 2 GW for solar cells and 3.36 GW for solar modules, making it one of the largest integrated solar manufacturers in the country.

Core Business Operations

• Manufacturing: Premier Energies specializes in producing high-efficiency solar PV cells and modules. The company’s manufacturing facilities are equipped with the latest technology to ensure high-quality output, catering to diverse customer needs, including independent power producers (IPPs), original equipment manufacturers (OEMs), and off-grid operators.

• EPC Services: The company provides comprehensive Engineering, Procurement, and Construction (EPC) solutions. These services cover the entire project lifecycle, from design and procurement to construction and commissioning, ensuring efficient and timely completion of solar power projects.

 

• Operations and Maintenance (O&M): Premier Energies offers O&M services for the solar projects it executes. This includes regular maintenance, performance monitoring, and technical support, ensuring that solar installations operate at optimal efficiency.

 

• Independent Power Production (IPP): As an IPP, Premier Energies develops and operates its own solar power projects, generating electricity for sale. This segment provides a stable revenue stream and enhances the company’s experience in managing large-scale solar operations.

 

 

 Financial Performance and Market Position

Premier Energies has exhibited significant financial growth, with a compounded annual growth rate (CAGR) of 42.71% in revenue from fiscal 2021 to 2023. The company reported revenues of ₹1,428 crore in FY 2023, increasing to ₹2,017 crore for the nine months ending December 31, 2023. As of March 2024, the company had a substantial order book valued at ₹5,362 crore.

Strategic Expansion and IPO

In 2024, Premier Energies filed for an initial public offering (IPO) to raise approximately ₹1,500 crore. The funds are aimed at establishing a new 4 GW TOPCon (tunnel oxide passivated contact) solar cell and module manufacturing facility in Hyderabad. This expansion is expected to boost the company’s production capacity and technological capabilities.

Export Activities

Premier Energies is a major exporter of solar cells, particularly to the United States, which is one of the largest markets for solar panels. This international presence highlights the company’s ability to meet stringent global quality standards and its competitive edge in the global market.

Premier Energies Limited IPO Details :

Premier Energies Limited IPO Pre-Offer shareholding of the Selling Shareholders:

 

Premier Energies Limited IPO Strengths :

Premier Energies Limited has several notable strengths that bolster its position in the renewable energy sector, particularly in solar power. Here are some key strengths:

• Robust Manufacturing Capabilities: Premier Energies is one of India’s leading integrated solar cell and module manufacturers, with a substantial annual production capacity of 2 GW for solar cells and 3.36 GW for solar modules.

 

• Technological Advancements: The Company is investing significantly in advanced solar technologies, such as the Tunnel Oxide Passivated Contact (TOPCon) solar cells and modules. These advanced products are expected to enhance efficiency and output, positioning Premier Energies at the forefront of solar technology.

 

• Strategic Expansion Plans: Premier Energies is actively expanding its production capacity with the establishment of a new 4 GW TOPCon solar cell and module manufacturing facility in Hyderabad, Telangana. This strategic expansion is expected to meet growing market demand and reinforce its market presence.

 

• Financial Growth: The Company has demonstrated robust financial performance with a compound annual growth rate (CAGR) of 42.71% from fiscal 2021 to 2023. This financial strength is indicative of its successful business operations and strong market demand for its products.

 

• IPO and Investment Potential: The upcoming initial public offering (IPO), aiming to raise over INR 1,500 crore ($180 million), is poised to provide substantial capital for further expansion and corporate purposes. This move is expected to attract investors and support long-term growth strategies.

 

• Global Market Reach: Premier Energies is a significant exporter of solar cells, particularly to the United States, which is one of the largest markets for solar panels. This global reach underscores its competitive advantage in the international market.

 

Premier Energies Limited IPO Risk Factor:

• Dependency on Key Customers: The revenue is heavily reliant on a small number of key customers, with the top 10 customers accounting for over 74% of the revenue in recent periods. The loss of any of these customers, due to factors such as contract termination, financial hardship, or switching to competitors, could significantly impact the business, financial condition, and operational results. Maintaining and diversifying the customer base is crucial to mitigate these risks.

 

• Reliance on Solar Cells and Modules: The revenue primarily comes from the sale of solar cells and modules, which constituted over 87% of our revenue in recent periods. The success of these products is critical to the business, and any decline in demand for solar technology or competition from alternative energy sources could significantly impact the profitability and growth prospects.

 

• Dependence on Export Markets and Regulatory Risks: The increasing reliance on export sales, particularly to the United States and Hong Kong, exposes the company to risks such as changes in foreign government policies, geopolitical instability, and compliance with regulations like the U.S. Uyghur Forced Labor Prevention Act. Any unfavourable changes or failure to comply with these policies could significantly impact the business operations and financial performance.

 

• Impact of Import Restrictions and Duties on Raw Materials: The Company’s reliance on imported raw materials, particularly from China, subjects the company to significant cost fluctuations and supply chain risks due to legislative and policy restrictions, including high import duties. These factors can adversely affect the business operations, financial performance, and ability to source materials timely and cost-effectively.

 

• Risk of Order Book Delays and Cancellations: The substantial order book of ₹53,620.51 million as of March 15, 2024, though indicative of future revenue, is subject to potential delays, modifications, or cancellations due to various factors. These include customer non-performance, policy changes, and governmental or project-specific disruptions, which could adversely impact the cash flows, business operations, and financial condition.

 

• Dependency on Short-Term Supplier Agreements: The reliance on short-term agreements with suppliers for materials and components exposes the company to risks such as price volatility and supply disruptions. Any failure by suppliers to deliver quality materials on time could negatively impact the operations, costs, profitability, and customer relationships.

 

Premier Energies Limited IPO Profit & Loss Analysis:

 

Premier Energies Limited IPO Objects of the Offer:

The main objectives of Premier Energies Limited’s offer are to raise capital for funding specific business-related activities and general corporate purposes. The breakdown of the planned utilization of the proceeds is as follows:

1. Capital Expenditure for Capacity Expansion and Modernization:
   • Solar Cell Manufacturing:
     • Increase the annual installed capacity to 3 GW.
     • Enhance the effective installed capacity to 2 GW.
   • Solar Module Manufacturing:
     • Expand the annual installed capacity to 5 GW.
     • Upgrade the effective installed capacity to 4 GW.
2. Working Capital Requirements:
   • The company aims to bolster its working capital to support the increased scale of operations following the capacity expansion.
3. Repayment/Prepayment of Borrowings:
   • Part of the proceeds will be used to repay or prepay certain borrowings, thus reducing the debt burden and improving the financial leverage of the company.
4. General Corporate Purposes:
   • The funds allocated for general corporate purposes will help meet various operational expenses, strengthen the company’s market position, and provide financial flexibility to respond to future opportunities and challenges.

Registrar to the Offer:

KFin Technologies Limited

Address: Selenium, Tower-B,

Plot No. 31 and 32 Financial District Nanakramguda,

Serilingampally Hyderabad 500 032 Telangana, India

Tel: +91 40 6716 2222

E-mail: pel.ipo@kfintech.com

Website: www.kfintech.com

Investor grievance e-mail: einward.ris@kfintech.com