ACME Solar Holdings has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise ₹3,000 crore through an initial public offering (IPO).

The renewable energy independent power producer (IPP) develops, builds, owns, operates and maintains utility-scale RE projects through its in-house engineering, procurement and construction (EPC) division, as well as its operation and maintenance (O&M) team.

The Gurugram-based company generates revenue by selling electricity to various off-takers, including central and State government-backed entities.

The proposed IPO is a combination of a mix of fresh issue of shares up to ₹2,000 crore and an offer for sale (OFS) of up to ₹1,000 crore by ACME Cleantech Solutions, which is a promoter company of ACME Solar Holdings.

The offer also includes a reservation for a subscription by eligible employees and a discount is being offered to eligible employees bidding in the employee reservation portion.

The company, in consultation with the book-running lead manager may consider an issue of specified securities up to ₹400 crore as pre-IPO placement. If such placement is completed, the fresh issue size will be reduced.

The offer is being made through book-building process, wherein not less than 75 per cent of the net offer shall be available for allocation on a proportionate basis to qualified institutional buyers, not more than 15 per cent of the net offer shall be available for allocation to non-institutional investors and not more than 10 per cent of the net offer shall be available for allocation to retail individual investors.

Net proceeds

ACME Solar Holdings intends to utilise net proceeds from the fresh issuance to the extent of ₹1,500 crore towards repayment/ prepayment, in full or in part, of certain outstanding borrowings availed by the subsidiaries and for general corporate purposes.

Nuvama Wealth Management, ICICI Securities, JM Financial, Kotak Mahindra Capital Company and Motilal Oswal Investment Advisors are the book-running lead managers to the issue.

As of March 31, 2024, ACME Solar had an aggregate operational project capacity of 1,320 megawatts (MW), 1,802 MWp, of solar power projects. It also had under construction contracted project capacity of 1,650 MW, including 1,500 MW (2,192 MWp) of solar power projects and 150 MW of wind power projects.

Additionally, it had an under construction awarded project capacity of 2,380 MW, comprising 300 MW of solar power projects, 830 MW of hybrid power projects, and 1,250 MW of FDRE power projects.

As of March 2024, 18 out of the 28 operational projects are located in Andhra Pradesh, Rajasthan and Telangana representing 85.07 per cent of its total operational project capacity.