Premier Energies IPO Listing on National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) doubled the investors money in it’s initial public offering itself.
But now the main question arises what should an investor do if they have got the allotment of Premier Energies IPO, should they hold or sell the shares?
Where can we see the Premier Energies share price going in next 6-12 months time period?
Let’s dive in and let’s answer all these queries.
Premier Energies IPO Listing
Premier Energies IPO went live on 27th of August, 2024 and closed on 29th of August 2024, where the company was looking to raise ₹2,830.40 crores via it’s IPO with the combination of raising ₹1291.4 crores via fresh issue and rest ₹1,539 crore via offer from sale (OFS).
But here is the catch, Premier Energies IPO got subscribed 74 times more what they wanted and they got 1.5 Lakh Crore against ₹2,830 crore what they asked for, where the QIB quota was subscribed 217 times, NII quota was subscribed 50 time while Retail and employee quota was subscriber 7 times and 10.4 times respectively.
Looking from the IPO subscription data Premier Energies Listing got an outstanding support from the investors while due to such a large subscription of IPO only a handful of retail investors were able to get the allotments of Premier Energies Shares.
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Allotment & Future of Premier Energies Share Price
The most important question is that what should you do if you have got the allotment of the shares of the company.
On 3 September, 2024 the stock of Premier Energies started trading after their IPO. The stock listed on ₹952 on both NSE & BSE and making a high of ₹994.5 on NSE.
While talking about this massive listing, the experts shown a sign of risk after premier energies share listed on 120% premium compared to the IPO price band and advised for a profit booking for now, due to stretched valuations taking it’s Market Cap above ₹20,000 crore and the stock PE went to 87.8%.
The future of the company looks bright and if you are a long term investor then you can hold your shares or else you can do a temporary profit booking and can buy again later on around the moderate valuations.
Even After the listing of Premier Energies its share price dipped to 802 as the investors were seen booking their profit made on their IPO allocation.
Due to it’s high manufacturing capacity and it’s plan to further increased this capacity and even expand it’s manufacturing presence in the United States also, can give the business of Premier Energies a huge strength and can provide multi bagger returns in future.
Premier Energies Limited Business
Premier Energies is India’s second largest integrated solar cell and solar module manufacturer with an aggregate annual installed capacity of 2 GW for solar cells and 3.36 GW for solar modules.
The company has got some renowned names as their clientele like NTPC, Shakti Pumps, Luminous, TATA Power Solar Systems Limited, etc. and currently maintaining healthy order book ₹5,926.57 crore as of 31 July, 2024.
If we take a look to its business, the revenue jumped more then 4 times from ₹743 crores in March 2022 to ₹3,144 crore in March 2024 while the net profit also jumped from the loss of ₹14 crore in FY2022-23 to a profit of ₹231 crore FY2023-24.
With the increase in electricity consumption in India, it is making a big shift from coal to renewable energy primarily through solar power and due to this all the companies who are directly or indirectly connected in this industry will see an immense growth in upcoming years.
Disclaimer: The Honest American provides stock market news and strategies for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.