About the Company:
Premier Energies Ltd is primarily an integrated solar cell and solar module manufacturer with 29 years of experience in the solar industry.
Company has five manufacturing facilities, all of which are situated on company owned land in Hyderabad, Telangana, India.
Company’s combined manufacturing facilities have an annual installed capacity of 2 GW for solar cells and 4.13 GW for solar modules
Company’s Unit II manufacturing facility is India’s first LEED gold rated solar manufacturing facility as certified by the U.S. Green Building Council.
Company has taken steps such as ordering the necessary equipment and machines to increase our annual installed capacity for solar cells by commissioning a 1,000 MW TOPCon solar cell line in Unit II.
Company is also an OEM provider for several business-to-consumer companies such as Panasonic, Luminous and Axitec, among others.
As of July 31, 2024, Company had an order book of Rs.5926.5 cr of which Rs.1609.1 cr was in relation to non-DCR solar modules, Rs.2214 cr was in relation to DCR solar modules, Rs.1891.1 cr was in relation to solar cells and Rs.212.2 cr was in relation to EPC projects.
Company’s Product Portfolio:
- Solar Cell.
- Solar Module.
- Other Solar Products.
Company’s EPC Solutions Business:
Leveraging company’s expertise in manufacturing high quality solar cells and solar modules and experience in the solar industry, we also provide EPC solutions as a contractor through our Company and our Subsidiary, Premier Solar Powertech Private Limited.
Company has 12 years of experience in providing EPC solutions which include end-to-end solar services for ground-mounted, rooftop, floating, canal bank, canal top and hybrid power generation systems with a track record of 266.26 MW ground mounted projects and 22.86 MW roof top projects.
Company provides solar water pumps under our EPC solutions. These solar water pumps feature solar modules manufactured by us and pumps sourced from external vendors.
Company manufactures solar water pumps which come in various sizes and capacities to meet diverse water requirements, from small-scale to large-scale agricultural irrigation.
Company’s O&M Solutions Business:
Company also have a presence in the O&M segment through the provision of O&M solutions for our EPC solution customers. Company currently provides O&M services for 178.38 MW of solar ground mount and rooftop solar solutions as well as for the solar water pumps.
Company’s Key Customers include several IPPs, OEMs and off-grid operators such as::
| NTPC. | TATA Power Solar Systems Ltd. | Panasonic Life Solutions Pvt Ltd. | Shakti Pumps Ltd. |
| Luminous Ltd | Hartek Solar Pvt Ltd. | Green Infra Wind Energy Ltd | Madhav Infra Projects Ltd. |
| First Energy Ltd | Bluepine Energies Pvt Ltd | SolarSquare Energy Pvt Ltd | Axitec Energy India Pvt Ltd |
Company’s Business Operations include:
(i) the manufacturing of solar photovoltaic (“PV”) cells, in particular bifacial monocrystalline PERC cells using the M10 wafer size in a 182mm x 182mm format which may be assembled into solar
modules.
(ii) the manufacturing of solar modules using different module technologies such as monocrystalline PERC and TOPCon, cell sizes and quantity, power output ranges and formats such as monofacial
and bifacial. We also manufacture custom made modules for specific applications.
(iii) the sale of customizable and ad hoc solar-related products depending on customer requirements such as customized bespoke solar tiles.
(iv) the execution of EPC projects which include end-to-end solar services for ground-mounted, rooftop floating, canal bank, canal top and hybrid power generation systems.
(v) the provision of O&M services with respect to EPC projects executed by our Company.
(vi) independent power production through our 2 MW solar power plant in Jharkhand, India.
Competitors in the Business:
As a solar module manufacturer in India, we compete with other Indian solar module manufacturers. Some of the key competitors across our business verticals include Waaree Energies, Mundra Solar, Jupiter Solar, Vikram Solar, Goldi Solar, RenewSys India and Websol Green Energy.
Management Team:
- Mr. Surender Pal Singh Saluja (Designation: Chairman and Whole- Time Director)
- Mr. Chiranjeev Singh Saluja (Designation: Managing Director)
Objectives of the Issue:
Offer For Sale: (Rs. 1539 cr)
- Company will not receive any proceeds from the Offer for Sale. The Selling Shareholders will be entitled to their respective portion of proceeds of the Offer for Sale.
Fresh Issue: (Rs.1291.4 cr)
- Investment in our Subsidiary, Premier Energies Global Environment Private Limited for part-financing the establishment of a 4 GW Solar PV TOPCon Cell and 4 GW Solar PV TOPCon Module manufacturing facility in Hyderabad, Telangana, India (the “Project”).
- General corporate purposes.
Positives for the Company:
Company is an integrated solar cell and solar module manufacturer.
- Company is the second largest integrated solar cell and solar module manufacturer in India as well as its second largest solar cell manufacturer in terms of annual installed capacity as of March 31, 2024. Currently company has an aggregate annual installed capacity of 2 GW for solar cells and 4.13 GW for solar modules.
Company Plans to expand manufacturing footprint into the United States.
- Company also plan to expand our manufacturing footprint into the United States and to this end, we signed a letter of intent in February 2024 with Heliene USA Inc, an American solar manufacturer, to enter into a joint venture to develop, construct and operate a TOPCon solar cell manufacturing facility (which may be extended to include the manufacturing of solar modules) in the United States.
Company Plans to develop and grow our rooftop solar offering.
- For the past decade, company has established itself as an OEM in the rooftop market for companies such as Panasonic, Luminous and Axitec.
- With the recent announcement of the Grid Connected Solar Rooftop Programme, which aims to equip 10 million homes in India with rooftop solar systems, the rooftop solar segment in India is anticipated to expand substantially due to an increased need for DCR modules, which is a prerequisite for applicants to avail themselves of the subsidies.
- The Grid Connected Solar Rooftop Programme is expected to generate 25 GW to 30 GW of rooftop solar installation opportunities over the next two to three years and we intend to capitalize on and meet this demand by tapping on our OEM status and using our channels sales across different states in India, an approach that is expected to enhance our brand recognition.
Company Plans to Capitalize on available market opportunities to grow the domestic business.
- Company intends to continue growing our operations and presence in India’s solar sector especially given the favorable regulatory environment and several government initiatives geared towards encouraging domestic production of solar cells and solar modules. For instance, the GoI’s DCR requires the use of locally produced solar cells and solar modules,
- Company has the ability to produce DCR-compliant solar cells and solar modules at scale and with the demand for DCR modules in India currently outpacing the production capacity of solar cells. Company is ideally positioned to expand the manufacturing capabilities by capitalizing on this market opportunity.
Expanding and upgrading manufacturing capacities using the latest technology.
- Company is strategically focused on regularly updating and improving our manufacturing capabilities and infrastructure. Company does this by adopting the latest technologies available to ensure our position in the solar cell and solar module manufacturing industry.
- Within Fiscal 2025, Company plans to commission a new 1,000 MW annual installed capacity production line for the production of solar cells using TOPCon technology in Unit II.
- Additionally, company aims to allocate a portion of the proceeds from the Fresh Issue towards establishing additional TOPCon solar cell and solar module lines each with an annual installed capacity of 4 GW, at a new manufacturing facility.
Financials of the Company:
| (in Crores) | FY 22 | FY 23 | FY 24 | Upto 30th June 24 |
|---|---|---|---|---|
| Revenue | 767.0 | 1463.2 | 3171.3 | 1668.7 |
| Net Profit | (-14.4) | (-13.3) | 231.3 | 198.1 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Premier Energies Ltd | 1 | 5.48 | 82.11 | 37.46% | 14.63 |
| Websol Energy System Ltd | 10 | (29.99) | NA | NA | NA |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 27th August 2024 |
| Issue Closes on | 29th August 2024 |
| Issue Price | Rs.427 -450 |
| Face Value | Rs.1 |
| Retail Category Allocation | 35 % |
| Minimum Lot | 33 Shares |
| Minimum Investment | Rs.14,850 |
| Issue Constitutes | 13.95 % |
| Issue Size | Rs.2830 cr ($ 337 million ) |
| Market Cap | Rs.20285 cr ($ 2.4 billion ) |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | 2,86,97,777 (Rs.1291.4 cr) |
| Equity Shares Offered (OFS) | 3,42,00,000 (Rs.1539 cr) |
| Total Equity Shares Offered (Fresh + OFS) | 6,28,97,777 (Rs.2830 cr) |
| Equity Shares Prior to the Issue | 42,,20,65,168 |
| Equity Shares after the Issue | 45,07,62,945 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 5.48 | 82.11 | 37.46% | 14.63 |
Also Read: Complete List of NSE/BSE Holidays List>>
Important Dates:
| Finalization of Basis of Allotment | on or Before 30th August 2024 |
| Initiation of Refunds | on or Before 2nd September 2024 |
| Credit of Equity Shares: | on or Before 2nd September 2024 |
| Listing Date: | on or Before 3rd September 2024 |
| Should You Subscribe or Not ? (Markets Guruji’s View) |
|---|
| Premier Energies Ltd is a prominent player in the solar industry, with 29 years of experience specializing in the integrated manufacturing of solar cells and solar modules. Headquartered in Hyderabad, Telangana, India, the company operates five manufacturing facilities, all located on company-owned land. These facilities boast an impressive annual installed capacity of 2 GW for solar cells and 4.13 GW for solar modules, positioning Premier Energies as a significant contributor to the renewable energy sector.
Company aims to extend its manufacturing footprint into the United States, a move that could further solidify its global presence. Additionally, Premier Energies is focusing on developing and growing its rooftop solar offerings, catering to the increasing demand for decentralized solar power solutions. The company is also committed to expanding and upgrading its manufacturing capacities by adopting the latest technology, ensuring they remain at the forefront of the industry. Given these strategic initiatives and the company’s solid track record, investors should consider aggressively applying in this IPO. Premier Energies’ growth potential, coupled with its established expertise, makes it a compelling investment opportunity in the rapidly growing renewable energy sector. |
| Company Contact Info: |
|---|
| Premier Energies Limited Plot No. 8/B/1 and 8/B/2 E- City, Maheshwaram Mandal, Raviryala Village K.V. Rangareddy 501 359 Telangana, India. Tel: + 91 90 3099 4222 E-mail: investors@premierenergies.com Website: www.premierenergies.com |
| Registrar to the Issue: |
|---|
| KFin Technologies Limited 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 |
