Renewable energy company Acme Solar Holdings Limited has filed preliminary documents with stock market regulator Sebi to raise Rs 3,000 crore through an IPO. According to the IPO documents filed with the Securities and Exchange Board of India (SEBI), the Gurugram-based company's proposed initial public offer (IPO) will see an offer of Rs 2,000 crore worth of new shares. There is also an offer for sale (OFS) of Rs 1,000 crore by Acme Cleantech Solutions. The proposal also has quotas for eligible employees.
The company may consider issuing securities up to Rs 400 crore as a 'pre-IPO placement'. If this happens, the size of the new digit will decrease. The company intends to use the proceeds of Rs 1,500 crore from the IPO to pay down its debt. Additionally, a portion will be used for general corporate purposes.
Acme Solar develops, builds, owns, operates and maintains renewable energy projects. It generates revenue by selling electricity to various companies including central and state government units. As of March 2024, 18 of the company's 28 operational projects were in Andhra Pradesh, Rajasthan and Telangana. This is 85 percent of its total operational project capacity.
Let us tell you that a senior official of mutual fund company Franklin Templeton said on Wednesday that the returns for investors in the equity stock market in the next three years will not be as good as in the last three years. R Janakiraman, the company's chief investment officer, however, told reporters that the returns would be “adequate” and would outperform other asset classes.
The IPO comes at a time when benchmark indices are touching new all-time highs and concerns are being expressed in the equity market about high valuations. Pointing to the recent spate of IPOs, he said newly listed companies are creating avenues to absorb the additional funds being invested. Equity returns in companies have outperformed earnings growth over the past few years and investors need to be prepared for a reversal.
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