The Australian Premium Solar SME IPO has opened for subscription, offering investors the opportunity to invest in the growth of the Indian solar industry. This article will provide details about the IPO, including the price band, grey market premium (GMP), financial performance, risks, and the expected listing date.
1. Price Band and Lot Size:
The Australian Premium Solar SME IPO has set the price band for its shares at Rs 51-Rs 54 per share. Investors can bid for a minimum of 2,000 equity shares and in multiples thereof.
2. Financial Performance and Objectives of the Issue:
For the fiscal year ending March 2023, Australian Premium Solar reported a revenue of Rs 94.5 crore, reflecting a 3.6 percent decline compared to the previous year. However, the company’s net profit increased by 22 percent to Rs 3.3 crore. The IPO proceeds will be utilized for capital expenditure, meeting working capital requirements, general corporate purposes, and public issue expenses.
3. Key Risks and Market Outlook:
One of the key risks associated with Australian Premium Solar is its reliance on a single manufacturing facility. Any disruption at the facility could adversely impact the company’s financials and operational condition. Additionally, the company’s business model depends on subsidies from state and central governments for its EPC services. Any reduction or discontinuation of these subsidies may affect the number of potential consumers. It is also important to note that the company conducts its business activities on a purchase order basis, without long-term agreements with customers.
4. Grey Market Premium and Expected Listing Date:
The grey market premium (GMP) for the Australian Premium Solar SME IPO reached Rs 30 on January 10, indicating a 55.5 percent increase over the issue price of Rs 54. This suggests a potential listing price of Rs 84. The company is expected to list on the NSE SME exchange on January 18.
5. Frequently Asked Questions (FAQs):
What is the price band for the Australian Premium Solar SME IPO?
The price band for the IPO is set at Rs 51-Rs 54 per share.
What is the lot size for investors participating in the IPO?
Investors can bid for a minimum of 2,000 equity shares and in multiples thereof.
What are the key risks associated with Australian Premium Solar?
The company faces risks due to its dependence on a single manufacturing facility and the potential reduction or discontinuation of subsidies for its EPC services.
The GMP reached Rs 30 on January 10, indicating a 55.5 percent increase over the issue price.
When is the expected listing date for Australian Premium Solar?
The company is expected to list on the NSE SME exchange on January 18.
In conclusion, the Australian Premium Solar SME IPO offers investors the opportunity to participate in the growth of the Indian solar industry. However, it is essential to consider the risks associated with the company’s operations and the potential impact of subsidies on its business. The grey market premium suggests positive market sentiment, and the expected listing date provides investors with a timeline for the IPO’s outcome.