ACME Solar Holding’s initial public offering (IPO) saw strong demand on its final day, driven by institutional investors. The issue, which started with 42% subscription on day one and reached 70% by the second day, was fully subscribed by the close of bidding on November 8.
ACME Solar IPO sails through on day 3
The Gurugram-based company is offering shares in the price range of ₹275-289 each, with a minimum order of 51 shares. ACME Solar aims to raise ₹2,900 crore through the IPO, which includes a fresh issue of ₹2,395 crore and an offer-for-sale (OFS) of up to 17.47 million shares.
As of 3:15 PM on November 8, the IPO was subscribed 2.55 times, with 14.86 million shares bid for against the 5.82 million shares on offer. The qualified institutional bidder (QIB) portion was oversubscribed 3.32 times, the retail portion 2.85 times, and the employee portion 1.46 times. However, the non-institutional investor (NII) segment was only 85% subscribed.
Company's history
Founded in June 2015, ACME Solar is one of India’s largest renewable energy producers, specializing in the development, operation, and maintenance of large-scale solar and wind projects.
Despite the IPO’s strong subscription, its grey market premium (GMP) has fallen amid market volatility. The GMP, which was ₹30 before the bidding began, is now near zero.
Brokerages generally have a positive view, citing strong demand for renewable energy, a diversified portfolio, and healthy margins. However, concerns over inconsistent profits, high debt, and aggressive valuations remain key risks for investors.
