(MENAFN- KNN India)
New Delhi, Jul 4 (KNN) In a significant move that underscores the growing momentum in India's renewable energy sector, ACME Solar Holdings has filed for an initial public offering (IPO) aimed at raising up to Rs 3,000 crore (approximately Rs 360 million).
This development, revealed in draft papers filed on Wednesday, marks a pivotal moment for the company and the broader green energy landscape in India.
ACME Solar, a key player in solar and wind energy projects, plans to issue fresh shares worth up to Rs 2,000 crore. Concurrently, its largest shareholder, ACME Cleantech Solutions, will offer shares valued at up to Rs 1,000 crore as part of the IPO structure.
The company intends to utilise the proceeds from the new share issuance primarily to reduce its debt burden. As of March 2023, ACME Solar reported annual borrowings of Rs 8,217 crore, reflecting a 5 per cent decrease from the previous year.
This IPO comes at a time when India's renewable energy sector is experiencing rapid growth, driven by ambitious national targets.
According to Moody's Ratings, India is projected to invest around USD 385 billion to achieve its goal of 500 gigawatts of renewable energy capacity by 2030.
ACME Solar's financial performance has been robust, with the company reporting a profit of Rs 698 crore in the last fiscal year, accompanied by a 2 per cent increase in revenue.
The IPO will be managed by a consortium of leading financial institutions, including Nuvama, ICICI Securities, JM Financial, Kotak Investment Banking, and Motilal Oswal Investment Banking, serving as the book-running managers.
This offering is expected to attract significant investor interest, given the current bullish trend in India's IPO market and the growing focus on sustainable energy investments globally.
(KNN Bureau)
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