Shares of ACME Solar Holdings will be listed at the bourses on Wednesday after successful IPO that subscribed 2.75 times. The company has fixed the IPO price at ₹289, at the upper end of the price range of ₹275-289.
The IPO received bids for approximately 16 crore shares against the 5.82 crore shares available. The issue was a combination of a fresh issue of ₹2,395 crore and an offer-for-sale of ₹505 crore by the promoter ACME Cleantech Solutions.
The issue drew a modest response from qualified institutional buyers (QIBs), who oversubscribed by 3.54 times. Retail investors also showed considerable interest, subscribing 3.10 times. The employee segment received moderate interest, with a subscription of 1.59 times; they will get a discount of Rs. 27 per share. The portion of non-institutional investors was subscribed just 0.97 times.
Anchor investors
ACME Solar Holdings raised ₹1,300.5 crore from anchor investors on Tuesday as part of the IPO. The company allotted 4.5 crore shares at ₹289 a share to 58 anchor investors. Marquee institutional investors such as Abu Dhabi Investment Authority, Goldman Sachs, Morgan Stanley, Nomura, Societe Generale, HSBC Global, BNP Paribas Funds, CLSA Global, Prudential Hong Kong, Eastspring Investments, Oaks Emerging Umbrella Funds Plc, Lion Global, Great Eastern Life , Copthall Mauritius, Susquehanna Pacific, Citigroup and Integrated Core Strategies were among the investors who participated in the anchor book. Among domestic mutual funds, Nippon Life India, HDFC Mutual Fund, ICICI Prudential MF, Mirae Asset, Tata Mutual Fund, SBI Life Insurance, ICICI Prudential Life, Bandhan MF, Manulife, Invesco India, Baroda BNP Paribas, SBI General Insurance, Abakkus Diversified Alpha Fund, Kotak Mahindra Life, and Edelweiss Life were also allotted shares in the anchor book.
It plans to use the proceeds from the fresh issuance to pay its debt (₹1,795 crore) and a portion for general corporate purposes.
Nuvama Wealth Management, ICICI Securities, JM Financial, Kotak Mahindra Capital Company, and Motilal Oswal Investment Advisors were the issue’s lead book-running managers, and Kfin Technologies was the registrar.