Premier Energies Limited IPO

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Premier Energies Limited is a prominent player in the solar energy industry, boasting 29 years of experience. The company is primarily engaged in the integrated manufacturing of solar cells and modules, with a focus on innovative and high-efficiency solar technologies. Over the years, Premier Energies has expanded its operations to encompass various facets of the solar industry, from manufacturing to EPC (Engineering, Procurement, and Construction) projects, and even independent power production.

Core Business Operations:

i. Solar Photovoltaic (PV) Cell Manufacturing                     ii. Solar Module Manufacturing
iii. Customizable Solar Products                                            iv. EPC Projects
v. Operation & Maintenance (O&M) Services                     vi. Independent Power Production

Key Customers and Order Book:

Premier Energies serves a diverse customer base that includes Independent Power Producers (IPPs), Original Equipment Manufacturers (OEMs), and off-grid operators. Key customers include NTPC, TATA Power Solar Systems Limited, Panasonic Life Solutions Private Limited, and other prominent players in the energy sector. As of July 31, 2024, the company’s order book stood at ₹59,265.65 million, with significant orders in non-DCR solar modules, DCR solar modules, solar cells, and EPC projects.

Strategic Investments:

In September 2021, Premier Energies received an investment of ₹1,770 million from South Asia Growth Fund II Holdings LLC and South Asia EBT Trust, affiliates of a global private equity management fund focused on climate solutions. This investment underscores the company’s potential in the renewable energy sector and supports its expansion plans.

Future Outlook: With a strong foundation in manufacturing and a strategic focus on expanding its capacity, Premier Energies is well-positioned to capitalize on the growing solar energy market in India. The company’s commitment to innovation, quality, and sustainability, coupled with its experienced leadership, provides a solid platform for continued growth and success in the renewable energy industry.

Objects of the Premier Energies Limited IPO:

The company proposes to utilize the net proceeds, the Offer related expenses (“Net Proceeds”), towards funding the following objects (collectively, the “Objects”): i. Investment in the Subsidiary, Premier Energies Global Environment Private Limited for part-financing the establishment of a 4 GW Solar PV TOPCon Cell and 4 GW Solar PV TOPCon Module manufacturing facility in Hyderabad, Telangana, India (the “Project”); and ii. General corporate purposes Total number of shares issue :- i. Fresh issue is 28,697,777 shares, ii. Offer for sale is 34,200,000 shares.
DRHP of Premier Energies Limited IPO
RHP of Premier Energies Limited IPO

Premier Energies Limited IPO Details:

Open Date: Aug 27 2024
Close Date: Aug 29 2024
Total Shares: 62,897,777
Face Value: ₹ 1 Per Equity Share
Issue Size: 2,830.40 Cr.
Lot Size: 33 Shares
Issue Price: ₹ 427 - 450 Per Equity Share
Listing At: NSE,BSE
Listing Date: Sep 03 2024

Promoters And Management:

Surender Pal Singh Saluja is the Chairman and Whole-Time Director and one of the Promoters of the Company. He has been associated with the Company since its incorporation. He is responsible for providing strategic advice to the Board, and developing and executing the Company’s business strategies. He has a bachelor’s in engineering (mechanical) degree from Karnatak University, Dharwad, Karnataka. He was awarded the National Award for Outstanding Entrepreneurship in Micro and Small Enterprises by the Ministry of Micro, Small and Medium Enterprises, Government of India in 2007. Chiranjeev Singh Saluja is the Managing Director of the Company and one of the Promoters of the Company. He has been associated with the Company since 1997. He is responsible for the overall operations of the Company and leading the Company’s short and long-term strategy and setting strategic goals. He has completed his higher secondary education from the Hyderabad Public School and St. Mary’s Junior College, Hyderabad. He was also honoured with a professional doctorate in global leadership and management by the European International University, Paris, France. He is a member of the Federation of Indian Chambers of Commerce and Industry and a director of the All India Solar Industries Association. Revathi Rohini Buragadda is an Executive Director of the Company. She has been associated with the Company since June 17, 2019. She is responsible for overseeing indirect taxation, relations with governmental agencies, and general insurance for the Company and its Subsidiaries. She holds a bachelor of science degree in agriculture from Andhra Pradesh Agricultural University. She has previously served as a Deputy Commissioner of Commercial Taxes with the State Government of Andhra Pradesh.

Financials of Premier Energies Limited IPO:

A. Balance sheet
Particular (In Million) Mar-22 Mar-23 Mar-24 3M-FY25
Equity Share Capital 263.46 263.46 263.46 334.07
Reserves 3,683 3,849 6,205 8,129
Borrowings 4,533 7,635 13,922 12,002
Trade Payables 2,699 3,979 9,746 10,375
Other Liabilities 2,236 5,380 5,405 6,515
Total Liabilities 9,469 16,995 29,073 28,892
Net Block 4,714 5,836 11,887 12,705
Capital Work in Progress 1,142 3,493 198 182
Investments 124 128 148 155
Other Assets 791 1,092 1,490 1,072
Total NC Assets 6,771 10,549 13,723 14,113
Receivables 1,452 595 6,090 5,908
Inventory 2,169 6,329 10,093 8,481
Cash & Bank 1,597 1,935 4,027 4,532
Other Assets 1,426 1,700 1,609 4,321
Face value 1 1 1 1
B. Profit & Loss Statement
Particular (In Million) Mar-22 Mar-23 Mar-24 3M-FY25
Sales 7,429 14,285 31,438 16,574
Raw Material Cost 3,987 11,105 22,280 9,396
Purchases of Stock In Trade 2,281 1,568 2,399 1,428
Change in Inventory -398 -934 -1,243 416
Other Mfr. Exp 316 246 474 145
Employee Cost 246 448 615 299
Other Expenses 700 1,070 2,135 1,307
Other Income 242 347 275 114
EBITDA 537 1,129 5,053 3,697
EBITDA Margin 7.23% 7.90% 16.07% 22.31%
Depreciation 276 532 961 794
Interest 430 686 1,212 452
Profit before tax -157 -78 2,894 2,457
Tax -13 56 580 476
Net profit -144 -133 2,314 1,982
NPM (%) -1.88% -0.91% 7.30% 11.87%
C. Cash Flow Statement
Particular (In Million) Mar-22 Mar-23 Mar-24 3M-FY25
Cash From Operating Activity
Profit From Operation 424 877 4,842 3,879
Receivable 106 801 -5,618 4
Inventory -1,543 -4,159 -3,765 1,612
Payable 1,061 1,352 5,782 594
Other WC Items 121 1,599 -87 425
Working Capital Changes -255 -407 -3,688 2,635
Direct Taxes -119 -103 -252 -284
Net Cash Inflow from Operating Activity 50 367 902 6,231
Cash from Investing Activity
Fixed assets purchased -1,987 -2,760 -4,514 -1,164
Fixed assets sold 153 28 23 0
Investments purchased -1,838 -508 -1,562 -5,700
Investment sold 1,418 502 2,085 3,223
Dividends received 4 0 3 0
Other investing items 70 -300 -502 -747
Net cash inflow from investing activities -2,179 -3,039 -4,466 -4,389
Cash from Financing Activity
Proceeds from shares 15.68 0 0 0
Proceeds from borrowings 1,198 2,866 6,840 41
Repayment of borrowings -117 -82 -553 -1,962
Intrest paid fin -418 -625 -785 -326
Financial liabilities -3 -3 -13 -5
Other financing items 2,111 361 0 0
Net Cash Flow 656 -155 1,924 -410
 

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Premier Energies Limited 3144 231 5.13 87.7 450 20,284
Websol Energy System Limited 26 -121 -28.66 472.0 907 3,831
* All the data is as per FY24.

Recommendation on Premier Energies Limited IPO:

Review and Recommendation of Premier Energies by team IZ is 5/10. 1. Premier Energies Limited is a prominent player in the solar energy industry, with nearly three decades of experience in manufacturing and supplying high-efficiency solar cells and solar modules. The company has established itself as an integrated solar cell and solar module manufacturer, offering a comprehensive range of products and services that cater to the growing demand for renewable energy solutions. 2. Business Operations The company's business operations are multifaceted, covering the entire spectrum of solar energy production and services: i. Solar PV Cell Manufacturing                                   ii. Solar Module Manufacturing iii. Customized Solar Products                                  iv. EPC Projects v. Operation & Maintenance (O&M) Services          vi. Independent Power Production 3. Key Clients and Order Book Their diverse product offerings have attracted a wide range of key customers, including Independent Power Producers (IPPs), Original Equipment Manufacturers (OEMs), and off-grid operators. Notable clients include NTPC, TATA Power Solar Systems Limited, Panasonic Life Solutions Private Limited, Continuum, Shakti Pumps, First Energy, Bluepine Energies Private Limited, Luminous, Hartek Solar Private Limited, Green Infra Wind Energy Limited, Madhav Infra Projects Limited, SolarSquare Energy Private Limited, and Axitec Energy India Private Limited. As of July 31, 2024, their order book stands at ₹59,265.65 million, with significant portions related to non-DCR and DCR solar modules, solar cells, and EPC projects. 4. Competitive Landscape The solar manufacturing industry in India is highly competitive, with several established players, including Waaree Energies, Mundra Solar, Jupiter Solar, Vikram Solar, Goldi Solar, RenewSys India, and Websol Green Energy. 5. The Revenue has Increased from Rs.743 Crores in FY22 to Rs.3144 Crores in FY24. 6. The EBITDA has Increased from 54 Crores in FY22 to 505 Crores in FY24. 7. The PAT has Increased from (-14) Crores in FY22 to 231 Crores in FY24. 8. As per FY24, CFO/EBITDA is 0.95, and EPS is 5.13, 9. Market Capitalization is 20,284 Crores and P/E is 87.7x based on FY24.

Lead Manager of Premier Energies Limited IPO:

  1. ICICI Securities Limited
  2. J.P. Morgan India Private Limited
  3. Kotak Mahindra Capital Company Limited

Registrar of Premier Energies Limited IPO:

  1. Kfin Technology Private Limited

Company Address:

Premier Energies Limited Plot No. 8/B/1 and 8/B/2, E- City Maheshwaram Mandal, Raviryala Village K.V. Rangareddy-501359 Phone: + 91 90 3099 422 Email: investors@premierenergies.com Website: https://www.premierenergies.com/

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