ACME Solar IPO Shares Disappoint in Debut; Stock lists with 13% discount

Shares of ACME Solar Holdings made a flop debut on Dalal Street on Wednesday as the renewable energy player listed on the NSE at Rs 251, a 13.15 per cent discount to the issue price of Rs 289 apiece. Similarly, the stock started its first trading session with a premium of 10.38 per cent at Rs 259 on BSE over the stated issue price.

ACME Solar Holdings’ listing performed better than expected. Prior to listing, shares of ACME Solar Holdings were trading at a discount of Rs 4 per share, indicating a flop shop on debut. The GMP stood at Rs 30 before the tender for the issue opened.

Gurugram-based ACME Solar Holdings sold its IPO between November 6 and 8. The company had offered its shares in the price range of Rs 275 to Rs 289 per share with a lot size of 51 shares. The company has raised a total of Rs 2,900 crore through its IPO, which included a new share sale of Rs 2,395 crore and an offer for sale (OFS) of up to 1,74,74,049 shares.

Due to short-term interest from qualified institutional bidders (QIBs), who rescued the issue with a 3.54 times bid for the quota, the issue was subscribed only 2.75 times in total. The private investor and employee shares were subscribed 3.10 times and 1.59 times respectively. However, the share for non-institutional investors (NIIs) was only recorded at 97 percent.

ACME Solar Holdings, founded in June 2015, is an Indian renewable energy power producer. It is one of the largest wind and solar power generators in India. The company specializes in the development, construction, ownership, operation and maintenance of large-scale renewable energy projects.

The brokerage firms were largely positive about the issue and recommended long-term subscriptions. JM Financial, Nuvama Wealth Management, ICICI Securities, Kotak Mahindra Capital Company and Motilal Oswal Investment Advisors were the bookrunners for the IPO of ACME Solar Holdings while Kfin Technologies was the registrar for the issue.