Premier Energies IPO listing date today. GMP, experts see multibagger return for share allottees
Premier Energies IPO Listing: Premier Energies Ltd, an integrated solar cell and solar panel manufacturer, is set to debut on the stock market today following its initial public offering (IPO). The IPO experienced robust demand, and investors are eagerly anticipating the company’s stock listing.
The Premier Energies IPO is set to list today, September 3. The offering ran from August 27 to August 29, with allotments finalized on August 30. Premier Energies shares will be listed on both the BSE and NSE.
A notice on the BSE stated: “Trading Members of the Exchange are hereby informed that, effective from Tuesday, September 3, 2024, the equity shares of Premier Energies Limited will be listed and admitted for trading on the Exchange under the ‘B’ Group of Securities.”
Premier Energies shares will be included in the Special Pre-open Session (SPOS) and will be available for trading starting at 10:00 am on Tuesday, September 3.
Investors who received shares in the Premier Energies IPO should monitor the grey market premium (GMP) and other indicators to assess the expected listing price.
Analysts anticipate that Premier Energies shares will debut at a strong premium, reflecting the robust demand seen during the IPO. The current GMP also suggests a favorable listing.
Premier Energies IPO GMP Overview:
Today, the GMP for Premier Energies IPO stands at ₹487 per share, according to stock market experts. This indicates that Premier Energies shares are trading ₹487 above their issue price in the grey market.
Based on the IPO GMP and the issue price, the estimated listing price for Premier Energies shares is ₹937 each, representing a substantial premium of 108.22% over the issue price of ₹450 per share. This suggests that the Premier Energies stock price could potentially double upon listing.
Premier Energies IPO Listing Expectations
Stock market analysts anticipate a strong debut for Premier Energies shares. The IPO garnered significant interest from various investor categories, particularly from Qualified Institutional Buyers (QIBs).
Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, attributes the high investor demand to the company’s reasonable valuations, its strategic positioning to leverage the growing renewable energy sector, and the opportunity to invest in India’s second-largest integrated solar cell and module manufacturer.
Prashanth Tapse stated, “Given factors such as subscription demand, market sentiment, and sector importance, we anticipate a strong listing gain of approximately 60-70% or potentially more compared to the issue price of ₹450 per share. While the long-term prospects for the sector remain promising, if we see a listing gain of around 80-100%, we recommend that allotted investors consider profit booking on the listing day. Such a gain would be justified based on the aforementioned factors.”
Prashanth Tapse added that the company’s alignment with government initiatives supporting domestic solar production, combined with its diverse customer base and recognition for module reliability, points to a promising future. He believes that in the long run, the market may assign a premium multiple due to Premier Energies’ leadership position, potentially leading to substantial gains post-listing.
“After listing, the valuation could shift from reasonable to stretched levels, which may prompt profit booking at higher prices,” Tapse noted.
Shivani Nyati, Head of Wealth at Swastika Investmart Ltd., also anticipates a strong debut for Premier Energies. She commented, “Despite the competitive nature of the solar manufacturing industry, Premier Energies’ strategic positioning and focus on innovation set it apart. Given the company’s solid fundamentals, strong investor interest, and favorable market conditions, Premier Energies is well-positioned for an exceptional listing.”
Akriti Mehrotra, Research Analyst at Stoxbox, anticipates that Premier Energies shares will list with a premium of 110% to 120%. She advises investors to consider holding the shares for the medium to long term.
Akriti Mehrotra stated, “Premier Energies reported a net income of ₹2,303 million in FY24, marking a significant turnaround from the previous loss. Major investments, such as a 4 GW TOPCon solar cell line, and an increase in ROCE to 25.6% highlight the company’s strong market position. Investors should consider holding their shares for the medium to long term.”
Premier Energies IPO Details
The Premier Energies IPO opened for public subscription on August 27 and closed on August 29. Allotments were finalized on August 30, with the shares set to be listed on September 3 on both the BSE and NSE.
The IPO was oversubscribed by 74.38 times overall. Specifically, the retail category was subscribed 7.69 times, the non-institutional investors (NII) portion was booked 50.04 times, and the Qualified Institutional Buyers (QIB) segment saw a subscription of 216.67 times. Additionally, the employee portion was subscribed 11.43 times, according to NSE data.
