Australian Premium Solar (India)

Australian Premium Solar (India) Limited is set to launch its initial public offering (IPO) on the NSE SME platform. The company manufactures solar panels and provides EPC services for solar projects. It is one of the recognized brands in India’s solar energy sector with a modern facility in Gujarat. 

Some key details of the upcoming IPO as per the prospectus are:

  • The IPO will open for subscription on January 11th, 2023 and close on January 15th, allowing investors of all categories (QIB, NII, Retail) to apply. 
  • Through the IPO, the company aims to raise approximately Rs. 28.08 crores via issuance of 5,200,000 equity shares at a face value of Rs. 10 each. 
  • The price band for the IPO has been set between Rs. 51 to Rs. 54 per share. Retail investors can bid for a minimum of 2000 shares and maximum up to the lot size. 
  • Post issue, the paid up equity share capital will stand at Rs. 14.72 crores divided into 1,472,000 equity shares of Rs. 10 each.
  • Objects of the issue include funding capital expenditure, working capital requirements, general corporate purposes and issue expenses. 
  • Lead managers for the IPO are Beeline Capital Advisors Private Limited who will assist the company in preparation of papers and the application process. 
  • Link Intime India Private Limited has been appointed as the registrar to the issue. They will handle allotment and refund processing.

Australian Premium Solar reported a turnover of Rs. 94.96 crores for FY 2023 with a profit after tax of Rs. 3.33 crores. On a PAT basis, the company is seeking a valuation of 2.29 times its FY2023 earnings at the higher price band.  

Some key strengths of the company include its established brand name, modern manufacturing facility in Gujarat with an annual capacity of 200MW, pan-India distribution network and diversified product portfolio including Mono PERC and polycrystalline panels. It also provides full solar solutions from rooftop to large scale ground mounted projects under EPC services.

Going forward, the long term growth outlook for India’s renewable energy sector looks promising given the push by the government to achieve energy targets through solar and wind. Australian Premium Solar is well positioned to capitalize on this opportunity being a prominent player with integrated manufacturing and project capabilities. 

However, investors should be aware of risks such as volatility in solar panel prices worldwide which impacts margins, rising competition from other players and dependence on timely clearances for large EPC projects. Any delays or cost overruns could impact timelines.

To sum up, the Australian Premium Solar IPO provides an opportunity for investors to participate in India’s climate-friendly solar industry at reasonable valuations compared to public peers. Those looking for a play on renewable energy with an established manufacturing presence can consider applying. Allotment is expected on January 16th and listing may happen around January 18th, 2023 subject to regulatory approvals.