Renewable energy firm ACME Solar Holdings files papers for Rs 3,000-crore IPO

New Delhi: 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 proposed IPO is a combination of fresh issue of shares worth Rs 2,000 crore and an offer for sale (OFS) of shares valued Rs 1,000 crore by ACME Cleantech Solutions, according to the draft red herring prospectus (DRHP).

The offer also includes a reservation for a subscription by eligible employees.

The company may consider issue of securities to the tune of up to Rs 400 crore as a "pre-IPO placement". If such placement is completed, the fresh issue size will be reduced.

The renewable energy firm intends to utilize the proceeds from the fresh issuance to the extent of Rs 1,500 crore towards payment of debt, besides a portion of funds will be used for general corporate purposes.

ACME Solar develops, builds, owns, operates, and maintains utility-scale renewable energy projects through its in-house engineering, procurement, and construction (EPC) division, as well as its operation and maintenance (O&M) team.

It generates revenue by selling electricity to various off-takers, including central and state government-backed entities.

As of March 2024, 18 out of 28 operational projects of the company were located in the states of Andhra Pradesh, Rajasthan, and Telangana, representing 85 per cent of its total operational projects capacity.

ACME Group was one of the early entrants in the solar independent power producer (IPP) business in India, commissioning its first solar power plant in fiscal 2012. Since then, the group has developed, executed, and commissioned a total of 2,719 MW of solar power projects.

On the financial front, ACME Solar's consolidated revenue from operations increased 1.88 per cent to Rs 1,319.25 crore during the fiscal year 2024 from Rs 1,294.90 crore in the previous year. The company had a turnaround from being a loss-making firm in FY23 to having registered a profit of Rs 698.23 crore in FY24.

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