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Premier Energies Ltd

Premier Energies Ltd IPO

Status: Closed

Overview

IPO date
27 Aug 2024 to 29 Aug 2024
Face value
₹ 1 per share
Price
₹ 427 to ₹450 per share
Issue Size
62,897,778 shares
(aggregating up to ₹ 2830.4 Cr)
Allotment Date
30 Aug 2024
Listing at
NSE
Issue type
Book Building
Sector
Capital Goods - Electrical Equipment

Objectives of Premier Energies Ltd IPO

Initial public offering of 62,909,200*# equity shares of face value of Re. 1 each ("Equity Shares") of Premier Energies Limited (The "Company" or the "Issuer") for cash at a price of Rs. 450 per equity share (the "Offer Price") aggregating to Rs. 2830.40*# crores (the "Offer") comprising a fresh issue of 28,709,200*# equity shares of face value of Re. 1 each by the company aggregating to Rs. 1291.40 crores*# (the "Fresh Issue") and an offer for sale of 34,200,000* equity shares of face value of Re. 1 each (the "Offered Shares") aggregating to Rs. 1539.00 crores (the "Offer for Sale"), comprising 26,827,200 equity shares of face value of Re. 1 each aggregating to Rs. 1207.22 crores by south asia growth fund ii holdings llc, 172,800 equity shares of face value of Re. 1 each aggregating to Rs. 7.78 crores by south asia ebt trust (together, the "Investor Selling Shareholders") and 7,200,000 equity shares of face value of Re. 1 each aggregating to Rs. 324.00 crores by Chiranjeev Singh Saluja (the "Promoter Selling Shareholder", and together with the investor selling shareholders, the "Selling Shareholders"). The offer included a reservation of 233,644* equity shares of face value of Re. 1 each, aggregating to Rs. 10.00 crores*# (constituting 0.05% of the post-offer paid-up equity share capital, for subscription by eligible employees ("Employee Reservation Portion"). The offer less the employee reservation portion is hereinafter referred to as the "Net Offer". The offer and the net offer constitutes 13.96% and 13.90%, respectively, of the post-offer paid-up equity share capital of the company. *Subject to finalization of basis of allotment #a discount of Rs. 22 per equity share was offered to eligible employees bidding in the employee reservation portion.

Premier Energies Ltd IPO Strategy

  • Expand its overseas presence and increase its exports especially in the U.S. market through strategic backward integration of its production chain and establishing manufacturing capabilities outside of India.
  • Develop and grow its rooftop solar offering.
  • Capitalize on available market opportunities to grow its domestic business.
  • Expanding and upgrading manufacturing capacities using the latest technology.

About Premier Energies Ltd

Premier Energies Ltd was originally incorporated as a Private Limited Company with the name 'Premier Solar Systems Private Limited' at Hyderabad, India, dated April 3, 1995, issued by the Registrar of Companies, Andhra Pradesh. The name of Company got changed to 'Premier Energies Private Limited' through a fresh Certificate dated August 6, 2019 issued by the RoC. Upon its conversion into a Public Limited Company, the Company name was changed to 'Premier Energies Limited' and a fresh Certificate of Incorporation dated September 25, 2019 was issued by the RoC. The Company is India's second largest integrated solar cell and module manufacturer as well as India's second largest solar cell manufacturer in terms of annual installed capacity with 2 GW for cells and 3.36 GW for modules. It has presence in other steps along the solar power value chain such as providing engineering, procurement and construction (EPC) solutions, operating and maintenance (O&M) services and being an independent power producer (IPP). It has five manufacturing facilities in Hyderabad, Telangana. The business operations include (i) the manufacturing of solar photovoltaic (PV) cells, (ii) the manufacturing of solar modules including custom made panels for specific applications, (iii) the execution of EPC projects, (iv) independent power production, (v) O&M services with respect to EPC projects executed by Company and (vi) the sale of other solar-related products. The Company in year 2011, established a solar cell manufacturing line with an annual capacity of 75 MW and a solar module line with an annual capacity of 100 MW in Unit I. It expanded the installed capacity of the solar manufacturing line in Unit I by 370 MW in 2017. It established a fully integrated 500 MW capacity solar cell line and a 750 MW capacity solar module line in Unit II in 2021. The Company expanded the installed capacity of the solar cell and module lines in Unit II by 250 MW and 150 MW, respectively in 2022. In 2023, it further established a line in Solar Cell Unit III with 1,250 MW annual capacity; established a solar module line in Unit IV with an annual capacity of 1,600 MW and expanded solar module line in Unit II installed capacity by 500 MW. In 2024, it established Unit V Solar Modular Line with an annual capacity of 100 MW. The Company is proposing the Initial Public Offer by raising funds Rs 1500 Crores through Fresh Issue and by issuing 28,200,000 Equity Shares thru' Offer for Sale.

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Strengths vs Risks of Premier Energies Ltd

Know the pros & cons

Strengths

  • arrowThe Company is an integrated solar cell and solar module manufacturer.
  • arrowThe Company has a long track record in the solar module manufacturing sector.
  • arrowThe Company is experienced in solar cell line production.
  • arrowThe Company has a diversified customer base with customer relationships both within India and overseas with a robust order book.
  • arrowThe Company has an experienced Promoter-led senior management team.

Risks

  • arrowIts revenue from operations is dependent upon a limited number of customers and the loss of any of these customers or loss of revenue from any of these customers could have a material adverse effect on its business, financial condition, results of operations and cash flows.
  • arrowThe business and prospects of the Company is dependent on the success of two products namely, solar cells and modules, and therefore their continued success is necessary for its business and prospects.
  • arrowIts manufacturing facilities are located in the state of Telangana, India, which exposes its operations to potential geographical concentration risks arising from local and regional factors which may adversely affect its operations and in turn its business, results of operations and cash flows.
  • arrowThe company incurred losses of Rs.(144.08) million and Rs.(133.36) million in Fiscals 2022 and 2023, respectively, and any similar losses in the future may adversely affect its business, financial condition and cash flows.
  • arrowMost of its Subsidiaries have incurred losses at some point in the last three Fiscals and the three months ended June 30, 2024, and any similar losses in the future may adversely affect its business, financial condition and cash flows. This includes Premier Energies Global Environment Private Limited, the Subsidiary to which the Net Proceeds will be applied.
  • arrowThe company had negative cash flows of Rs(155.29) million in Fiscal 2023 and Rs.(410.48) million in the three months ended June 30, 2024 and may continue to have negative cash flows in the future.
  • arrowUnder-utilization of its manufacturing capacities and an inability to effectively utilize its expanded and proposed manufacturing capacities could have an adverse effect on the company's business, prospects, financial performance and cash flows.
  • arrowExpansion of its annual installed capacity despite existing underutilization may adversely affect its business, financial condition and results of operations if there is insufficient demand for the company products.
  • arrowThe Company experienced a significant decline in actual production and annual installed capacity of solar modules in the past three Fiscals and the three months ended June 30, 2024. Should similar decreases occur in the future, its business, financial condition and results of operations may be adversely affected.
  • arrowThe proceeds from the Offer for Sale will be paid to the Selling Shareholders.
  • arrowIn the past, the company failed to comply with certain provisions of the Foreign Exchange Management Act, 1999 and also with the Companies (Prospectus and Allotment of Securities) Rule, 2014, and had to compound such non-compliances. The company cannot assure you that there will be no such non-compliances in the future and that the Company, Subsidiaries, its Directors or the directors of the company's Subsidiaries will not be subject to any penalty or any additional payments.
  • arrowThe company has significant working capital requirements and its inability to meet such working capital requirements may have an adverse effect on its results of operations.
  • arrowThe company faces intense competition in its markets, and its may lack sufficient financial or other resources to maintain or improve its competitive position.
  • arrowThe company is unable to trace some of its historical corporate records including in relation to certain allotments, changes in its registered office and appointment of directors. The company cannot assure you that no legal proceedings or regulatory actions will be initiated against the Company in the future in relation to these matters, which may impact its financial condition and reputation.
  • arrowThe company has in the past entered into a number of related party transactions and may continue to enter into related party transactions that may involve conflicts of interest.
  • arrowIts success depends on the company ability to retain and attract qualified senior management and other key personnel, and if the company is not able to retain them or recruit additional qualified personnel, its may be unable to successfully develop the company's business.
  • arrowThe company is dependent on projects awarded by government entities and public sector undertakings. In the event the company is unable to secure such projects, its business, results of operations and financial condition may be adversely affected.
  • arrowThe company bid for engineering, procurement and construction (EPC) projects through a competitive bidding process, and its may not be able to qualify for, compete or win such projects, which could adversely affect its business prospects, cash flows and results of operations.
  • arrowIts Subsidiary, Premier Solar Powertech Private Limited, has availed unsecured borrowings which had an outstanding amount of Rs. 21.07 million as of June 30, 2024 and may be recalled by the lender at any time.
  • arrowThere are various risks associated with solar cell and solar module manufacturing. If such risks materialize, its business, financial condition and results of operations, among others, could be adversely affected.
  • arrowThe company has experienced a sudden change in revenue from operations, restated profit / (loss) and total borrowings in the past three Fiscals and the three months ended June 30, 2024.
  • arrowIts ability to access capital at attractive costs depends on the company credit ratings. Non -availability of credit ratings or a poor rating may restrict its access to capital and thereby adversely affect the company's business, financial conditions, cash flows and results of operations.
  • arrowIts engineering, procurement and construction (EPC) contracts may include provisions permitting its customers to terminate the agreement at their convenience. If such agreements are terminated, its business, financial condition and results of operations may be adversely affected.
  • arrowImproper storage, processing and handling of materials and products may cause damage to the company inventory leading to an adverse effect on its business, results of operations and cash flows.
  • arrowAn increasing amount of its income is derived from the company export of solar modules and cells which its in the process of expanding. Such expansion plans and exports may be dependent on the policies passed by the governments of export countries and any unfavorable change in such policies may adversely affect its business.
  • arrowThe company has certain contingent liabilities and capital commitments which have been disclosed in its Restated Consolidated Financial Information, which if they materialize, may adversely affect its results of operations, cash flows and financial condition.
  • arrowIts manufacturing processes for solar cells and solar modules currently relies significantly on nonrenewable energy sources. Such reliance could result in increased costs, affect compliance and harm its reputation if the company fails to transition to renewable energy sources.
  • arrowRestrictions or import duties levied on raw materials the company use in its manufacturing operations may adversely affect the company's business prospects, financial performance and cash flows.
  • arrowOrders in its order book may be delayed, modified or cancelled, which may have an adverse impact on its business, results of operations and cash flows.
  • arrowThe company import machinery from overseas and the same is subject to certain risks which may adversely affect its business, results of operations, financial condition and cash flows.
  • arrowCertain of its agreements with the company key customers have onerous terms which could result in termination if breached which in turn could have a material adverse effect on its business, financial condition, results of operations and cash flows.
  • arrowChanges in the price of solar modules, solar cells, wafers and other raw materials due to changes in demand or other factors may have a material adverse effect on its business, financial condition and results of operations.
  • arrowThe continued decrease in prices for renewable energy products such as solar cells and solar modules may adversely affect its business, financial condition and results of operations.
  • arrowThe typical duration of the agreements the company enter into is 60 to 120 days and there are no long term agreements that the company has entered into for major raw materials. An inability on the part of its suppliers to supply, in a timely manner, the desired quality and quantity of materials and components, may adversely affect its operations.
  • arrowThe company must comply with restrictive covenants under its financing agreements, non-compliance with which can lead to accelerated repayment and suspension of future drawdowns, adversely affecting its business, results of operations, financial condition and cash flows.
  • arrowGrowing its business through acquisitions or joint ventures may subject the company to additional risks that may adversely affect its business, financial condition, cash flows, results of operations and prospects.
  • arrowIts business has grown rapidly in recent periods, and the company may not be able to sustain its rate of growth in the future.
  • arrowAny variation in the utilization of the Net Proceeds would be subject to certain compliance requirements, including prior Shareholders' approval.
  • arrowIf inflation were to rise in India, the company might not be able to increase the prices of its products and services at a proportional rate in order to pass costs on to the company customers and its profits might decline.
  • arrowThe company corporate office, branch offices, warehouses and guest houses are located on leased premises. There can be no assurance that its lease or rental agreements will be renewed upon termination or that the company will be able to lease other premises on the same or similar commercial terms.
  • arrowIts Promoters, Directors, Key Managerial Personnel and Senior Management may have interests other than reimbursement of expenses incurred and receipt of remuneration or benefits from the Company. Certain of its Promoters and Directors may have interests in entities, which are in businesses similar to its and this may result in conflict of interest with the company.
  • arrowIts Promoters and Promoter Group will continue to exercise significant influence over the Company after completion of the Offer.
  • arrowThe Company cannot assure payment of dividends on the Equity Shares in the future.
  • arrowThere are outstanding litigation proceedings involving the Company, Subsidiaries and Directors. Any adverse outcome in such proceedings may have an adverse impact on its reputation, business, financial condition, results of operations and cash flows.
  • arrowThe company may be unable to benefit from government policies like the Modified Special Incentive Package Scheme, Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors and various other policies.
  • arrowExchange rate fluctuations may adversely affect its results of operations.
  • arrowThe company is exposed to credit risk from its customers and the recoverability of the company trade receivables is subject to uncertainties.
  • arrowIts business is dependent on the regulatory and policy environment affecting the renewable energy sector in India. The company is also subject to imposition of basic customs duty under the Customs Act, 1962 of 25% on solar cells and 40% on modules with effect from April 1, 2022 and 10% on solar glass with effect from October 1, 2024.
  • arrowThe company intend to utilize a portion of the Net Proceeds towards investment in its Subsidiary, Premier Energies Global Environment Private Limited, for funding its capital expenditure requirements in relation to the expansion of its manufacturing capacities in the form of a 4 GW TOP Con cell line and 4 GW solar module line. The company has not entered into any definitive arrangements in this regard which may result in unanticipated delays in implementation, cost overruns and other risks and uncertainties. Its funding requirements and deployment of the Net Proceeds of the Offer are based on management estimates and a project cost vetting report from RCT Solutions GmbH, both of which have not been independently appraised by any bank or financial institution.
  • arrowThe cost estimates for the Project have been derived from a project cost vetting report issued by RCT Solutions GmbH which may not be accurate. Reliance on potentially inaccurate estimates may result in cost overruns which could adversely affect its financial condition, results of operations and liquidity.
  • arrowCounterparties to its agreements may not fulfil their obligations, which could have a material adverse effect on the company's business, prospects, financial condition, results of operations and cash flows.
  • arrowAn inability to produce quality products that addresses the needs of its customers or adopt new solar technologies and in an effective and timely manner may adversely affect its business, results of operations and cash flows.
  • arrowAn inability to accurately forecast demand or price for its products and manage the company inventory may adversely affect its business, results of operations, financial condition and cash flows.
  • arrowImplementing its growth strategy and the company's business operations will depend on its ability to maintain access to multiple funding sources on acceptable terms.
  • arrowAny defects or deficiencies in its products may cause it to incur additional expenses and warranty costs, damage the company reputation and cause its sales to decline.
  • arrowThe company is dependent on third-party transportation providers for the transport of raw materials for its manufacturing process and delivery of the company finished products.
  • arrowThe loss of accreditation for its manufacturing facilities and operations could damage its reputation, business, results of operations and cash flows.
  • arrowThe company is required to provide bank guarantees and performance guarantees under certain contracts and letters of credit for its suppliers' payments.
  • arrowAny unscheduled or prolonged disruption of its manufacturing operations could materially and adversely affect the company's business, financial condition, results of operations and cash flows.
  • arrowAn inability to provide adequate customer support and ancillary services may adversely affect its relationship with the company existing and prospective customers, and in turn its business, results of operations and financial condition.
  • arrowThe company may not be able to adequately protect its intellectual property.
  • arrowThe company may infringe the intellectual property rights of others and its may face claims that may be costly to defend and/or limit its ability to use such technology in the future, which may have a material adverse effect on its business, financial condition and results of operations.
  • arrowIts may be subject to significant risks and hazards when constructing, operating and maintaining its manufacturing facilities, for which the company's insurance coverage might not be adequate.
  • arrowChanges in technology may render its current technologies obsolete or require the company to make substantial capital investments.
  • arrowIf the company is unable to establish and maintain effective internal controls and compliance systems, its business and reputation could be adversely affected.
  • arrowThe company is dependent on its Promoters, Directors, Key Managerial Personnel and Senior Management and the loss of any key team member may adversely affect its business performance.
  • arrowIndustry information included in this Red Herring Prospectus has been derived from an industry report commissioned by it, and paid for by the company for such purpose.
  • arrowIts may be subject to unionization, work stoppages or increased labor costs, which could adversely affect its business, cash flows and results of operations. The company also have a large number of contract laborers, numbering 3,278 as of June 30, 2024, resulting in increased costs to the Company.
  • arrowThe company has included certain Non-GAAP Measures, industry metrics and key performance indicators related to its operations and financial performance in this Red Herring Prospectus that are subject to inherent measurement challenges. These Non-GAAP Measures, industry metrics and key performance indicators may not be comparable with financial, or industry-related statistical information of similar nomenclature computed and presented by other companies. Such supplemental financial and operational information is therefore of limited utility as an analytical tool for investors and there can be no assurance that there will not be any issues or such tools will be accurate going forward.
  • arrowAny failures or disruption of its information technology systems could adversely impact the company's business and operations.

Premier Energies Ltd Peer Comparison

Understand the company’s industry standing

Premier Energies Ltd
Websol Energy System Ltd
Face Value
1
10
Standalone / Consolidated
Consolidated
Standalone
Total Income Rs. Cr.
3171.311
26.81
EPS-Basis
6.93
-29.99
EPS-Diluted
5.48
-29.99
NAV Per Share
14.63
---
P/E-Basic EPS
---
---
P/E-Diluted EPS
---
---
RONW(%)
37.46
---
Latest NAV Period
---
---
Latest NAV
---
---
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The IPO opens on 27 Aug 2024 & closes on 29 Aug 2024.

Premier Energies Ltd was originally incorporated as a Private Limited Company with the name 'Premier Solar Systems Private Limited' at Hyderabad, India, dated April 3, 1995, issued by the Registrar of Companies, Andhra Pradesh. The name of Company got changed to 'Premier Energies Private Limited' through a fresh Certificate dated August 6, 2019 issued by the RoC. Upon its conversion into a Public Limited Company, the Company name was changed to 'Premier Energies Limited' and a fresh Certificate of Incorporation dated September 25, 2019 was issued by the RoC. The Company is India's second largest integrated solar cell and module manufacturer as well as India's second largest solar cell manufacturer in terms of annual installed capacity with 2 GW for cells and 3.36 GW for modules. It has presence in other steps along the solar power value chain such as providing engineering, procurement and construction (EPC) solutions, operating and maintenance (O&M) services and being an independent power producer (IPP). It has five manufacturing facilities in Hyderabad, Telangana. The business operations include (i) the manufacturing of solar photovoltaic (PV) cells, (ii) the manufacturing of solar modules including custom made panels for specific applications, (iii) the execution of EPC projects, (iv) independent power production, (v) O&M services with respect to EPC projects executed by Company and (vi) the sale of other solar-related products. The Company in year 2011, established a solar cell manufacturing line with an annual capacity of 75 MW and a solar module line with an annual capacity of 100 MW in Unit I. It expanded the installed capacity of the solar manufacturing line in Unit I by 370 MW in 2017. It established a fully integrated 500 MW capacity solar cell line and a 750 MW capacity solar module line in Unit II in 2021. The Company expanded the installed capacity of the solar cell and module lines in Unit II by 250 MW and 150 MW, respectively in 2022. In 2023, it further established a line in Solar Cell Unit III with 1,250 MW annual capacity; established a solar module line in Unit IV with an annual capacity of 1,600 MW and expanded solar module line in Unit II installed capacity by 500 MW. In 2024, it established Unit V Solar Modular Line with an annual capacity of 100 MW. The Company is proposing the Initial Public Offer by raising funds Rs 1500 Crores through Fresh Issue and by issuing 28,200,000 Equity Shares thru' Offer for Sale.

Premier Energies Ltd IPO will close on 29 Aug 2024.

  • The Company is an integrated solar cell and solar module manufacturer.
  • The Company has a long track record in the solar module manufacturing sector.
  • The Company is experienced in solar cell line production.
  • The Company has a diversified customer base with customer relationships both within India and overseas with a robust order book.
  • The Company has an experienced Promoter-led senior management team.

S.No Promoters Name Pre Issue Shares Pre Issue Percentage Post Issue Shares Post Issue Percentage
1 Surender Pal Singh Saluja 15694120 3.72 15694120 3.48
2 Chiranjeev Singh Saluja 266812382 63.22 259612382 57.59
3 Vivana Saluja 5061990 1.2 5061990 1.12
4 Manjeet Kaur Saluja 5061856 1.2 5061856 1.12
5 Jasveen Kaur 2795940 0.66 2795940 0.62
6 Charandeep Singh Saluja 1396093 0.33 1396093 0.31
7 Surender Pal Saluja Trust 500 --- 500 ---
8 Chiranjeev Saluja Trust 500 --- 500 ---

  • Its revenue from operations is dependent upon a limited number of customers and the loss of any of these customers or loss of revenue from any of these customers could have a material adverse effect on its business, financial condition, results of operations and cash flows.
  • The business and prospects of the Company is dependent on the success of two products namely, solar cells and modules, and therefore their continued success is necessary for its business and prospects.
  • Its manufacturing facilities are located in the state of Telangana, India, which exposes its operations to potential geographical concentration risks arising from local and regional factors which may adversely affect its operations and in turn its business, results of operations and cash flows.
  • The company incurred losses of Rs.(144.08) million and Rs.(133.36) million in Fiscals 2022 and 2023, respectively, and any similar losses in the future may adversely affect its business, financial condition and cash flows.
  • Most of its Subsidiaries have incurred losses at some point in the last three Fiscals and the three months ended June 30, 2024, and any similar losses in the future may adversely affect its business, financial condition and cash flows. This includes Premier Energies Global Environment Private Limited, the Subsidiary to which the Net Proceeds will be applied.
  • The company had negative cash flows of Rs(155.29) million in Fiscal 2023 and Rs.(410.48) million in the three months ended June 30, 2024 and may continue to have negative cash flows in the future.
  • Under-utilization of its manufacturing capacities and an inability to effectively utilize its expanded and proposed manufacturing capacities could have an adverse effect on the company's business, prospects, financial performance and cash flows.
  • Expansion of its annual installed capacity despite existing underutilization may adversely affect its business, financial condition and results of operations if there is insufficient demand for the company products.
  • The Company experienced a significant decline in actual production and annual installed capacity of solar modules in the past three Fiscals and the three months ended June 30, 2024. Should similar decreases occur in the future, its business, financial condition and results of operations may be adversely affected.
  • The proceeds from the Offer for Sale will be paid to the Selling Shareholders.
  • In the past, the company failed to comply with certain provisions of the Foreign Exchange Management Act, 1999 and also with the Companies (Prospectus and Allotment of Securities) Rule, 2014, and had to compound such non-compliances. The company cannot assure you that there will be no such non-compliances in the future and that the Company, Subsidiaries, its Directors or the directors of the company's Subsidiaries will not be subject to any penalty or any additional payments.
  • The company has significant working capital requirements and its inability to meet such working capital requirements may have an adverse effect on its results of operations.
  • The company faces intense competition in its markets, and its may lack sufficient financial or other resources to maintain or improve its competitive position.
  • The company is unable to trace some of its historical corporate records including in relation to certain allotments, changes in its registered office and appointment of directors. The company cannot assure you that no legal proceedings or regulatory actions will be initiated against the Company in the future in relation to these matters, which may impact its financial condition and reputation.
  • The company has in the past entered into a number of related party transactions and may continue to enter into related party transactions that may involve conflicts of interest.
  • Its success depends on the company ability to retain and attract qualified senior management and other key personnel, and if the company is not able to retain them or recruit additional qualified personnel, its may be unable to successfully develop the company's business.
  • The company is dependent on projects awarded by government entities and public sector undertakings. In the event the company is unable to secure such projects, its business, results of operations and financial condition may be adversely affected.
  • The company bid for engineering, procurement and construction (EPC) projects through a competitive bidding process, and its may not be able to qualify for, compete or win such projects, which could adversely affect its business prospects, cash flows and results of operations.
  • Its Subsidiary, Premier Solar Powertech Private Limited, has availed unsecured borrowings which had an outstanding amount of Rs. 21.07 million as of June 30, 2024 and may be recalled by the lender at any time.
  • There are various risks associated with solar cell and solar module manufacturing. If such risks materialize, its business, financial condition and results of operations, among others, could be adversely affected.
  • The company has experienced a sudden change in revenue from operations, restated profit / (loss) and total borrowings in the past three Fiscals and the three months ended June 30, 2024.
  • Its ability to access capital at attractive costs depends on the company credit ratings. Non -availability of credit ratings or a poor rating may restrict its access to capital and thereby adversely affect the company's business, financial conditions, cash flows and results of operations.
  • Its engineering, procurement and construction (EPC) contracts may include provisions permitting its customers to terminate the agreement at their convenience. If such agreements are terminated, its business, financial condition and results of operations may be adversely affected.
  • Improper storage, processing and handling of materials and products may cause damage to the company inventory leading to an adverse effect on its business, results of operations and cash flows.
  • An increasing amount of its income is derived from the company export of solar modules and cells which its in the process of expanding. Such expansion plans and exports may be dependent on the policies passed by the governments of export countries and any unfavorable change in such policies may adversely affect its business.
  • The company has certain contingent liabilities and capital commitments which have been disclosed in its Restated Consolidated Financial Information, which if they materialize, may adversely affect its results of operations, cash flows and financial condition.
  • Its manufacturing processes for solar cells and solar modules currently relies significantly on nonrenewable energy sources. Such reliance could result in increased costs, affect compliance and harm its reputation if the company fails to transition to renewable energy sources.
  • Restrictions or import duties levied on raw materials the company use in its manufacturing operations may adversely affect the company's business prospects, financial performance and cash flows.
  • Orders in its order book may be delayed, modified or cancelled, which may have an adverse impact on its business, results of operations and cash flows.
  • The company import machinery from overseas and the same is subject to certain risks which may adversely affect its business, results of operations, financial condition and cash flows.
  • Certain of its agreements with the company key customers have onerous terms which could result in termination if breached which in turn could have a material adverse effect on its business, financial condition, results of operations and cash flows.
  • Changes in the price of solar modules, solar cells, wafers and other raw materials due to changes in demand or other factors may have a material adverse effect on its business, financial condition and results of operations.
  • The continued decrease in prices for renewable energy products such as solar cells and solar modules may adversely affect its business, financial condition and results of operations.
  • The typical duration of the agreements the company enter into is 60 to 120 days and there are no long term agreements that the company has entered into for major raw materials. An inability on the part of its suppliers to supply, in a timely manner, the desired quality and quantity of materials and components, may adversely affect its operations.
  • The company must comply with restrictive covenants under its financing agreements, non-compliance with which can lead to accelerated repayment and suspension of future drawdowns, adversely affecting its business, results of operations, financial condition and cash flows.
  • Growing its business through acquisitions or joint ventures may subject the company to additional risks that may adversely affect its business, financial condition, cash flows, results of operations and prospects.
  • Its business has grown rapidly in recent periods, and the company may not be able to sustain its rate of growth in the future.
  • Any variation in the utilization of the Net Proceeds would be subject to certain compliance requirements, including prior Shareholders' approval.
  • If inflation were to rise in India, the company might not be able to increase the prices of its products and services at a proportional rate in order to pass costs on to the company customers and its profits might decline.
  • The company corporate office, branch offices, warehouses and guest houses are located on leased premises. There can be no assurance that its lease or rental agreements will be renewed upon termination or that the company will be able to lease other premises on the same or similar commercial terms.
  • Its Promoters, Directors, Key Managerial Personnel and Senior Management may have interests other than reimbursement of expenses incurred and receipt of remuneration or benefits from the Company. Certain of its Promoters and Directors may have interests in entities, which are in businesses similar to its and this may result in conflict of interest with the company.
  • Its Promoters and Promoter Group will continue to exercise significant influence over the Company after completion of the Offer.
  • The Company cannot assure payment of dividends on the Equity Shares in the future.
  • There are outstanding litigation proceedings involving the Company, Subsidiaries and Directors. Any adverse outcome in such proceedings may have an adverse impact on its reputation, business, financial condition, results of operations and cash flows.
  • The company may be unable to benefit from government policies like the Modified Special Incentive Package Scheme, Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors and various other policies.
  • Exchange rate fluctuations may adversely affect its results of operations.
  • The company is exposed to credit risk from its customers and the recoverability of the company trade receivables is subject to uncertainties.
  • Its business is dependent on the regulatory and policy environment affecting the renewable energy sector in India. The company is also subject to imposition of basic customs duty under the Customs Act, 1962 of 25% on solar cells and 40% on modules with effect from April 1, 2022 and 10% on solar glass with effect from October 1, 2024.
  • The company intend to utilize a portion of the Net Proceeds towards investment in its Subsidiary, Premier Energies Global Environment Private Limited, for funding its capital expenditure requirements in relation to the expansion of its manufacturing capacities in the form of a 4 GW TOP Con cell line and 4 GW solar module line. The company has not entered into any definitive arrangements in this regard which may result in unanticipated delays in implementation, cost overruns and other risks and uncertainties. Its funding requirements and deployment of the Net Proceeds of the Offer are based on management estimates and a project cost vetting report from RCT Solutions GmbH, both of which have not been independently appraised by any bank or financial institution.
  • The cost estimates for the Project have been derived from a project cost vetting report issued by RCT Solutions GmbH which may not be accurate. Reliance on potentially inaccurate estimates may result in cost overruns which could adversely affect its financial condition, results of operations and liquidity.
  • Counterparties to its agreements may not fulfil their obligations, which could have a material adverse effect on the company's business, prospects, financial condition, results of operations and cash flows.
  • An inability to produce quality products that addresses the needs of its customers or adopt new solar technologies and in an effective and timely manner may adversely affect its business, results of operations and cash flows.
  • An inability to accurately forecast demand or price for its products and manage the company inventory may adversely affect its business, results of operations, financial condition and cash flows.
  • Implementing its growth strategy and the company's business operations will depend on its ability to maintain access to multiple funding sources on acceptable terms.
  • Any defects or deficiencies in its products may cause it to incur additional expenses and warranty costs, damage the company reputation and cause its sales to decline.
  • The company is dependent on third-party transportation providers for the transport of raw materials for its manufacturing process and delivery of the company finished products.
  • The loss of accreditation for its manufacturing facilities and operations could damage its reputation, business, results of operations and cash flows.
  • The company is required to provide bank guarantees and performance guarantees under certain contracts and letters of credit for its suppliers' payments.
  • Any unscheduled or prolonged disruption of its manufacturing operations could materially and adversely affect the company's business, financial condition, results of operations and cash flows.
  • An inability to provide adequate customer support and ancillary services may adversely affect its relationship with the company existing and prospective customers, and in turn its business, results of operations and financial condition.
  • The company may not be able to adequately protect its intellectual property.
  • The company may infringe the intellectual property rights of others and its may face claims that may be costly to defend and/or limit its ability to use such technology in the future, which may have a material adverse effect on its business, financial condition and results of operations.
  • Its may be subject to significant risks and hazards when constructing, operating and maintaining its manufacturing facilities, for which the company's insurance coverage might not be adequate.
  • Changes in technology may render its current technologies obsolete or require the company to make substantial capital investments.
  • If the company is unable to establish and maintain effective internal controls and compliance systems, its business and reputation could be adversely affected.
  • The company is dependent on its Promoters, Directors, Key Managerial Personnel and Senior Management and the loss of any key team member may adversely affect its business performance.
  • Industry information included in this Red Herring Prospectus has been derived from an industry report commissioned by it, and paid for by the company for such purpose.
  • Its may be subject to unionization, work stoppages or increased labor costs, which could adversely affect its business, cash flows and results of operations. The company also have a large number of contract laborers, numbering 3,278 as of June 30, 2024, resulting in increased costs to the Company.
  • The company has included certain Non-GAAP Measures, industry metrics and key performance indicators related to its operations and financial performance in this Red Herring Prospectus that are subject to inherent measurement challenges. These Non-GAAP Measures, industry metrics and key performance indicators may not be comparable with financial, or industry-related statistical information of similar nomenclature computed and presented by other companies. Such supplemental financial and operational information is therefore of limited utility as an analytical tool for investors and there can be no assurance that there will not be any issues or such tools will be accurate going forward.
  • Any failures or disruption of its information technology systems could adversely impact the company's business and operations.

The Issue type of Premier Energies Ltd is Book Building.

The minimum application for shares of Premier Energies Ltd is 33.

The total shares issue of Premier Energies Ltd is 62897778.

Initial public offering of 62,909,200*# equity shares of face value of Re. 1 each ("Equity Shares") of Premier Energies Limited (The "Company" or the "Issuer") for cash at a price of Rs. 450 per equity share (the "Offer Price") aggregating to Rs. 2830.40*# crores (the "Offer") comprising a fresh issue of 28,709,200*# equity shares of face value of Re. 1 each by the company aggregating to Rs. 1291.40 crores*# (the "Fresh Issue") and an offer for sale of 34,200,000* equity shares of face value of Re. 1 each (the "Offered Shares") aggregating to Rs. 1539.00 crores (the "Offer for Sale"), comprising 26,827,200 equity shares of face value of Re. 1 each aggregating to Rs. 1207.22 crores by south asia growth fund ii holdings llc, 172,800 equity shares of face value of Re. 1 each aggregating to Rs. 7.78 crores by south asia ebt trust (together, the "Investor Selling Shareholders") and 7,200,000 equity shares of face value of Re. 1 each aggregating to Rs. 324.00 crores by Chiranjeev Singh Saluja (the "Promoter Selling Shareholder", and together with the investor selling shareholders, the "Selling Shareholders"). The offer included a reservation of 233,644* equity shares of face value of Re. 1 each, aggregating to Rs. 10.00 crores*# (constituting 0.05% of the post-offer paid-up equity share capital, for subscription by eligible employees ("Employee Reservation Portion"). The offer less the employee reservation portion is hereinafter referred to as the "Net Offer". The offer and the net offer constitutes 13.96% and 13.90%, respectively, of the post-offer paid-up equity share capital of the company. *Subject to finalization of basis of allotment #a discount of Rs. 22 per equity share was offered to eligible employees bidding in the employee reservation portion.