Shares of ACME Solar Holdings made a weak listing at the bourses, as the stock opened in discount at ₹259 on the BSE, down 10.38 per cent, from the issue price of ₹289. During the day, it tumbled 13.91 per cent to ₹248.80 and recovered marginally to end at ₹253.50, down 12.28 per cent against IPO price. On the NSE, shares of the renewable energy firm listed at ₹251 and ended at ₹255.15, down 11.71 per cent.
The IPO 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.
Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, said: “While the company operates in the promising renewable energy sector and has demonstrated strong growth and improved profitability, the high debt-to-equity ratio and the overall market sentiment might have influenced the negative listing.”
investment strategy
Investors who participated in the IPO should carefully consider their investment strategy and may want to reassess their holding based on the company’s future performance and market dynamics, she added.
The issue drew a modest response from qualified institutional buyers (QIBs), who oversubscribed by 3.54 times; retail investors portion subscribed 3.10 times; and employee segment 1.59 times. The portion of non-institutional investors, however, remained under-subscribed at 0.97 times.
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.