Key Points
- ACME Solar Holdings’ ₹2,900-crore IPO saw a 0.39 times subscription on Day 2.
- The price range for the IPO is ₹275-289 per share.
- The issue consists of ₹2,395 crore in fresh shares and ₹505 crore in an offer-for-sale.
- The retail investor portion was subscribed 1.19 times, while the institutional and QIB portions showed low demand.
- ₹1,300.5 crore was raised from anchor investors, including global institutions.
- Proceeds will be used to reduce debt and for general corporate purposes.
Looma News
ACME Solar Holdings’ ₹2,900-crore initial public offering (IPO) entered its second day with a subscription rate of 0.39 times. The IPO, which opened on Tuesday, has a price band of ₹275-289 per share and will close on Friday. The offering includes ₹2,395 crore from a fresh issue and ₹505 crore in an offer-for-sale by the promoter, ACME Cleantech Solutions.
The IPO is aimed at different investor categories, with 75% set aside for Qualified Institutional Buyers (QIBs), 15% for non-institutional investors, and 10% for retail investors. On the first day, the retail portion saw strong demand, with a subscription of 1.19 times. However, the institutional and QIB portions were subscribed at much lower rates, with 0.32 times and 0.15 times, respectively. The employee quota, which includes 4.03 lakh shares, was subscribed 0.60 times.
Before the public offering, ACME Solar raised ₹1,300.5 crore from anchor investors. A total of 4.5 crore shares were allocated at ₹289 each to 58 anchor investors. Well-known institutional investors such as Abu Dhabi Investment Authority, Goldman Sachs, and Morgan Stanley participated in the anchor book. Domestic mutual funds, including HDFC Mutual Fund, ICICI Prudential, and SBI Life Insurance, also joined the allotment.
ACME Solar Holdings plans to use the funds from the fresh issue to reduce its debt by ₹1,795 crore. The remaining funds will be used for general corporate purposes. Nuvama Wealth Management, ICICI Securities, JM Financial, Kotak Mahindra Capital Company, and Motilal Oswal Investment Advisors are the lead book-running managers for the IPO, while Kfin Technologies is handling the registrar duties.
