ACME Solar Holdings, a leading renewable energy company in India, has filed for an initial public offering (IPO) to raise ₹3,000 crore (US$360 million) to fund its ambitious growth plans. As of March 31, 2024, ACME Solar ranked among the top 10 renewable energy producers in India based on operational capacity, according to a Crisil report.

Company Highlights

Strong Operational Capacity: ACME Solar boasts a current operational solar power capacity of 1,320 MW, with an additional 1,500 MW of solar and 150 MW of wind power under construction.
Financial Performance: After experiencing a loss the previous year, ACME Solar swung to a net profit of ₹689.22 crore (US$83 million) in fiscal year 2023-24. Revenue also improved to ₹1,466.26 crore (US$176 million).

IPO Details

Fresh Issue & Offer for Sale: The public offering will consist of a fresh issue of shares worth ₹2,000 crore (US$240 million) and an offer for sale of ₹1,000 crore (US$120 million) by the promoter group, ACME Cleantech Solutions Pvt. Ltd.
Employee Offerings: The offer for sale includes a reservation for eligible employees with a discount on their share purchases.
Potential Pre-IPO Placement: ACME Solar might consider issuing pre-IPO securities of up to ₹400 crore (US$48 million), potentially reducing the fresh issue size.
Fund Allocation: Proceeds from the fresh issue will be primarily used to repay debt (₹1,500 crore) and general corporate purposes.
Debt Management: ACME Solar has an outstanding debt of ₹10,314 crore (US$1.2 billion). The company has undertaken strategic debt refinancing initiatives, including issuing green bonds.

Expansion Ambitions

ACME Solar’s aggressive expansion plans are evident in their recent activities:

Seeking Fresh Equity: In January, reports indicated ACME Group was looking to raise $300 million for bidding on new projects.
Infrastructure Investment Trust: Plans to sell up to 51% of a proposed infrastructure investment trust for around $1.3 billion were reported in November.
Stake Sale in ACME Cleantech: Last year, the group explored raising $500 million by selling a stake in ACME Cleantech.
Advanced Chemistry Cell Manufacturing: ACME Solar is among the companies vying for a government contract to manufacture advanced chemistry cells.
Green Ammonia Plant: A partnership with Japan’s IHI Corp. to establish a green ammonia plant in Odisha is also underway.

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