Premier Energies Limited IPO Review
Neutral450-450 · Mainboard
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Analyst Verdict
Premier Energies Limited IPO
Neutral
IPO at a Glance
Price Band
450-450
Issue Size
2830cr
Min. Investment
₹14,850
Opens
2024-08-25
Closes
2024-08-27
Listing
2024-09-01
Category
Mainboard
Key Strengths
✓Diversified customer base with a robust order book: The company’s aggregate annual installed capacity and market position enable it to access a large and diversified customer base, both domestic and global. It serves domestic customers in 23 states and union territories in India with nearly 200 total customers from India and 27 total customers from overseas markets.
✓Integrated solar cell and solar module manufacturer: According to F&S, the company is India’s second-largest integrated solar cell and solar module manufacturer in terms of annual installed capacity as of March 31, 2024.
Key Risks
⚠Past losses: The company incurred losses of ₹14.41 crores and ₹13.34 crores in FY22 and FY23 respectively primarily due to a delay in the stabilization and process setup of the cell line. Any similar losses in the future may adversely affect the business, financial condition, and cash flows.
⚠Decline in production and annual capacity: The Company experienced a significant decline in actual production and annual installed capacity of solar modules in the past three Fiscals as one of its units became technologically obsolete and could not be upgraded to the latest technology. Should similar decreases occur in the future, the company’s business and financial condition may be adversely affected.
⚠Negative cash flows: The company had negative cash flows of ₹15.53 crores in Fiscal 2023 and ₹41.05 crores in the three months ended June 30, 2024, and may continue to have negative cash flows in the future.
⚠Higher working capital requirements: The company has significant working capital requirements and any inability to meet such working capital requirements may have an adverse effect on its results of operations.
Frequently Asked Questions
Should I apply for Premier Energies Limited IPO?
Based on our analysis, our rating for Premier Energies Limited IPO is: Neutral. Review the full analysis including strengths, risks, and financials on CheckIPO before making a decision.
What are the key risks of Premier Energies Limited IPO?
Past losses: The company incurred losses of ₹14.41 crores and ₹13.34 crores in FY22 and FY23 respectively primarily due to a delay in the stabilization and process setup of the cell line. Any similar losses in the future may adversely affect the business, financial condition, and cash flows. Decline in production and annual capacity: The Company experienced a significant decline in actual producti
What are the strengths of Premier Energies Limited IPO?
Diversified customer base with a robust order book: The company’s aggregate annual installed capacity and market position enable it to access a large and diversified customer base, both domestic and global. It serves domestic customers in 23 states and union territories in India with nearly 200 total customers from India and 27 total customers from overseas markets. Integrated solar cell and solar
What is the price band of Premier Energies Limited IPO?
The price band for Premier Energies Limited IPO is 450-450. The IPO has closed.
Full Analysis Available
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