ACME Solar Holdings Aims for Rs 3,000 Crore with IPO

Renewable energy firm ACME Solar Holdings Ltd has filed documents with Sebi to raise Rs 3,000 crore via an IPO, including a fresh issue of shares worth Rs 2,000 crore and a Rs 1,000 crore offer for sale by ACME Cleantech Solutions. Proceeds will primarily repay debt and fund general operations.

Renewable energy firm ACME Solar Holdings Ltd has filed preliminary papers with capital markets regulator Sebi to raise Rs 3,000 crore through an initial public offering (IPO).

The Gurugram-based company's planned IPO is a mix of fresh share issuing worth Rs 2,000 crore and a Rs 1,000 crore offer for sale (OFS) by ACME Cleantech Solutions, as detailed in the draft red herring prospectus (DRHP).

The proposal also makes room for a subscription reservation for eligible employees. Additionally, the firm might issue securities up to Rs 400 crore as a 'pre-IPO placement,' which would reduce the fresh issue size if executed.

ACME Solar aims to utilize Rs 1,500 crore of the fresh issuance proceeds towards debt repayment, with remaining funds directed towards general corporate purposes.

The company specializes in developing, building, owning, operating, and maintaining utility-scale renewable energy projects through its engineering, procurement, and construction (EPC) wing and its operation and maintenance (O&M) team. Revenue is generated primarily by selling electricity to central and state government-backed entities.

By March 2024, 18 out of ACME Solar's 28 operational projects are located in Andhra Pradesh, Rajasthan, and Telangana, making up 85% of its total operational capacity.

ACME Group was an early solar independent power producer (IPP) entrant in India, commissioning its first solar power plant in fiscal 2012. To date, the group has developed and executed 2,719 MW of solar power projects.

Financial details show ACME Solar's consolidated revenue increased 1.88% to Rs 1,319.25 crore in fiscal year 2024. The company turned a profit of Rs 698.23 crore in FY24, compared to being loss-making in FY23.

Nuvama Wealth Management, ICICI Securities, JM Financial, Kotak Mahindra Capital Company, and Motilal Oswal Investment Advisors are the book-running lead managers for the issue.

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