Business profile of the Acme Solar Holdings
The ACME Group, a leading Indian renewable energy company, has expanded its portfolio to include solar, wind, hybrid, firm, and dispatchable renewable energy (FDRE) projects. Established in 2015, the company has grown from solar power projects to become an integrated renewable energy company. As of March 31, 2024, the company has an operational project capacity of 1,320 MW, under construction contracted project capacity of 1,650 MW, and under construction awarded project capacity of 2,380 MW. The company has an integrated in-house business platform to execute and operate its projects throughout their life cycles.
The Main Objectives to Launch the Acme Solar Holdings IPO
The Acme Solar Holdings IPO issue will be mix of offer for sale and fresh issue.
- The OFS consist of Rs. 1000 crores and the company will not receive any funds from the proceeds of the OFS.
- The company has lasso floated Rs. 2000 crores fresh issue. Through the fresh issue company proposes to utilize Rs. 1500 crores for repayment of certain borrowings. Rest Rs. 500 crores will be used for general corporate purposes.
IPO Details of Acme Solar Holdings:
| IPO Open Date | Not Announced |
| IPO Close Date | Not Announced |
| Basis of Allotment | Not Announced |
| Listing Date | Not Announced |
| Face Value | ₹2 per share |
| Price | Not Announced |
| Lot Size | Not Announced |
| Total Issue Size | Up to [●] Equity Shares |
| Aggregating up to Rs. 30,000.00 million | |
| Fresh Issue | Up to [●] Equity Shares |
| Aggregating up to Rs. 20,000.00 million | |
| Offer For Sale | Up to [●] Equity Shares |
| Aggregating up to Rs. 10,000.00 million | |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE & NSE |
| QIB Shares Offered | Not less than 75% of the Net Issue |
| Retail Shares Offered | Not more than 10% of the Net Issue |
| NII (HNI) Shares Offered | Not more than 15% of the Net Issue |
Acme Solar Holdings IPO Issue Price & Size
The issue price of Acme Solar Holdings hasn’t been released yet. Upon releasing the dates, the investors can bid between these price ranges. The company has an OFS of Rs. 1000 crores and fresh issue of Rs. 2000 crores.
Launch Date of Acme Solar Holdings IPO
The IPO of this company is launching on (Opening Date XXXX), hence the opening date for bidding is (Open Date) and the IPO is closing on (Closing Date). Investors can bid in this IPO between these days during the primary market hours.
Acme Solar Holdings Financial Statements
| Particulars | FY24 | FY23 | FY22 |
| Revenue | |||
| Revenue from operations | 13192.5 | 12949.04 | 14879.02 |
| Other income | 1470.17 | 664.69 | 748.24 |
| Total Revenue | 14662.67 | 13613.73 | 15627.26 |
| Expenses | |||
| Cost of materials consumed | - | - | 938.5 |
| Employee benefits expense | 589.95 | 346.44 | 382.37 |
| Finance costs | 7672.93 | 8090.97 | 9960.08 |
| Depreciation and amortisation expense | 3081.4848.02 | 5462.75 | |
| Other expenses | 1710.6 | 876.67 | 1154.93 |
| Total expenses | 13054 | 14162.1 | 17898.63 |
| Profit/(loss) before exceptional items | 1607.81 | -548.37 | -2271.37 |
| Exceptional items | 7490.9 | 394.36 | 3295.63 |
| Profit/(Loss) for the year | 6982.27 | -31.74 | 620.1 |
| Particulars | Restated Consolidated Financial Information | Adjusted for Acquisition/Divestment | ||||
| FY24 | FY23 | FY22 | FY24 | FY23 | FY22 | |
| Operational | ||||||
| Installed Capacity (total MW) as on | 1320 | 1459 | 1159 | 1320 | 1459 | 1159 |
| Under Construction Contracted as on | 1650 | 1800 | 1750 | 1650 | 1800 | 1750 |
| Under Construction Awarded as on | 2380 | 100 | 675 | 2380 | 100 | 675 |
| Average CUF for the assets held
as on last date of the financial year (%) |
24.59 | 22.08 | 21.93 | 24.59 | 22.08 | 21.93 |
| Average Grid Availability for the assets
held as on last date of the financial year (% |
99.4 | 99.37 | 99.3 | 99.4 | 99.37 | 99.3 |
| Average Plant Availability for the
assets held as on last date of the financial year (%) |
99.41 | 99.23 | 99.69 | 99.41 | 99.23 | 99.69 |
| Financial | ||||||
| Revenue from Operations | 13192.5 | 12949.04 | 14879.02 | 10676.24 | N.A. | N.A. |
| Total Revenue | 14662.67 | 13613.73 | 15627.26 | 11905.57 | N.A. | N.A. |
| EBITDA | 10891.95 | 11725.93 | 12403.22 | 8579.17 | N.A. | N.A. |
| EBITDA Margin (% of Revenue from Operations) | 82.56 | 90.55 | 83.36 | 80.36 | N.A. | N.A. |
| PAT | 6982.27 | -31.74 | 620.1 | 119.41 | N.A. | N.A. |
| PAT Margins (% of Total Revenue) | 47.62 | -0.23 | 3.97 | 1 | N.A. | N.A. |
| Net debt/Equity(x) | 2.66 | 3.85 | 3.56 | 2.66 | N.A. | N.A. |
| Cash RoE (% of Equity) | 38.84 | 25.34 | 31.87 | 8.48 | N.A. | N.A. |
| DSO (Days) | 116 | 197 | 228 | 144 | N.A. | N.A. |
Acme Solar Holdings Promoters & Shareholding
As mentioned in the document, there are 5 promoters of Acme Solar Holdings
- Mamta Upadhyay
- Manoj Kumar Upadhyay (Chairman & MD)
- ACME Cleantech
- MKU Holdings Private Limited
- Upadhyay Family Trust
| Name of the Promoter Selling Shareholder | Details of the Offer for Sale | Equity shares held at time of filing DRHP |
| ACME Cleantech | Up to [●] Equity Shares aggregating to ₹10,000.00 million | 522,207,910 Equity Shares, constitutes to 100% of paid-up Equity capital |
Should You Subscribe to Acme Solar Holdings IPO or Not
While investing or subscribing to any IPO, consider the investment rationales related to the company. Hence, here you can find out the strength of the company that will be its growth factors. And also check the risk factors that can affect the growth and operational efficiency of the company.
Strengths of the Company:
One of the largest renewable energy producers
Acme Solar, One of the biggest independent power producers (or "IPP") of renewable energy in India. As of Mar 24, the company has
- Operational project capacity of 1,320 MW
- Under construction contracted project capacity of 1,650 MW
- Under construction awarded project capacity of 2,380 MW.
From the past few years government has given attention on using renewable sources for energy. Therefore, renewable energy project installations have increased fivefold to approximately 191 GW as of Mar 24, with solar energy accounting for 43% of the total installed generation base.
For encouraging companies to participate and shift to renewable energy, the government has taken various steps including waiver of inter-state transmission charges on electricity generated from solar and wind projects and renewable purchase obligation mandates.
End-to-end value chain capabilities
The ACME Group team has extensive experience in the renewable energy industry with proven track record in developing, executing, and commissioning 2,719 MW (3,668 MWp) of solar power projects in 12 Indian states since inception.
The ACME Group also maintains a full-fledged EPC and O&M capabilities, allowing them to deploy resources efficiently and timely without affecting project development timelines.
The ACME Group's in-house EPC capabilities allow them to control process, costs, and timelines, use project design expertise, be flexible with technology and top-tier suppliers, and optimize power generation.
The company's in-house O&M capabilities use technology, forecasting software, central monitoring system software, maintenance scheduling, and other systems to monitor portfolio performance and operational metrics. This integrated approach to project development allows the company to control costs, retain construction-related margins, and increase internal cash accruals for future development.
Diversified portfolio
The company has a diverse portfolio of renewable energy projects across 10 Indian states, including Rajasthan, Gujarat, Andhra Pradesh, and Odisha.
The company has an aggregate operational project capacity of 1,320 MW. The company has under construction contracted project capacity of 2,220 MW with under construction awarded project capacity of 1,810 MW. The company plans to install battery energy storage systems (BESS) for hybrid and FDRE projects. India has introduced round-the-clock generation tenders, including hybrid tenders, to strengthen clean generation combining solar, wind, and storage technologies.
| Breakup of Portfolio | |
| Project type | Percentage of total portfolio |
| Solar | 58.32% |
| FDRE | 23.36% |
| Hybrid | 15.51% |
| Wind | 2.8% |
Risk Factors of the Company:
Dependent on our Power Purchase Agreements
The Draft Red Herring Prospectus outlines the company's operational projects, under construction contracts, and long-term Power Purchase Agreements (PPAs), which typically last 25 years and require a performance bank guarantee. Delays in project commissioning can lead to liquidation of performance bank guarantees and termination of non-commissioned capacity by the offtaker. Excess generation of electricity can result in partial additional generation at reduced tariffs, potentially causing revenue loss. The company's profitability relies on managing costs during PPA terms and operating power projects optimally. Limited negotiation ability can lead to onerous terms, penalties, fines, and charges.
Dependent on off-takers
The company has a significant reliance on off-takers as they generate a significant portion of its revenues for the company. Off takers in project financings are buyers of the resources produced by completed and operating projects. If due to loss of demand by off takers, deterioration of financial ability of off takers can negatively impacting the company's business, results of operations, and cash flows.
Concentration of Operational Project
There are some states in India that produced more power per unit area received from the Sun than any other states like Gujarat, Rajasthan, Andhra Pradesh, etc. This factor makes these sates attractive for establishing solar projects. As of Mar 24’, 18 out of 28 operational projects were located in these states, representing 85.07% of the total capacity.
Any kind of obstruction or damage to project due to natural calamity, disaster could adversely affect the company's ability to meet its contractual obligations. Result of which will be seen on company’s financial and hence profit.
Below mentioned is revenues generated from these states and as a percentage of the revenue from operations for given time.
| State | FY24 | FY23 | FY22 |
| Percentage of revenue from operations | |||
| Andhra Pradesh | 15.12% | 15.65% | 13.83% |
| Rajasthan | 28.20% | 19.67% | 16.11% |
| Telangana | 19.90% | 20.45% | 30.16% |
| Total | 63.20% | 55.77% | 60.10% |
Losses from operations
For FY22 and FY23, the company made losses of Rs. 548 million and Rs. 2271 million from operating activities. The losses were turned into profit after taking into account Exceptional items. The exceptional item for FY23 and FY22 accounted for Rs. 394.36 million and 3295.63 million, which help in bringing down loss to Rs. 31.74 million in FY and net profit of Rs. 620 million in FY22.
How to Apply in Acme Solar Holdings IPO?
To apply for the Acme Solar Holdings IPO or invest in any listed company in India, you must have a demat account and trading account. Once you have both these accounts you can apply for IPOs in the primary market or buy shares directly from the secondary market through the trading platform provided by the discount brokers or full-service brokers to their clients.
Also Read: Choosing the right broker: Decoding the mystery of lowest brokerage charges
To apply for this IPO through Moneysukh follow the steps given below.
Also Read: What are the Benefits of Demat Account: Advantages & Why you need it
Steps to Apply for Acme Solar Holdings IPO:
Step 1: Once the IPO opens you can apply.
Step 2: Open trade.moneysukh.com and log in with your User ID & password.
Step 3: Now find the IPO section and select the Acme Solar Holdings IPO.
Step 4: Here you have to fill in various details like price, quantity, and so on.
Note: At the time of applying for any IPO, always bid at the cutoff price before submitting your application.
Step 5: Now make the required payment and submit your IPO application.
Also Read: What to Check Before Buying IPO: Things to Know & Is it Safe
How to Check the Allotment Status of Acme Solar Holdings IPO?
The allotment of shares in the IPO is organized after a few days of closing of bidding. Once the allotment date arrives, you can check the allotment status through various online sources like NSE, and BSE and through the website of Moneysukh using your PAN or IPO application details.
Also Read: How to check IPO allotment status on NSE, BSE through Moneysukh
The allotment of shares in the IPOs is highly dependent on the oversubscribe status of the IPOs. Hence, if it is oversubscribed many times, there are less chances of allotment to everyone.
Also Read: How Shares are Allotted in Oversubscribed IPO: Allocation Process
However, if you have been allotted any share in this IPO cit will be credited into your demat account on the date of listing that you can sell in the secondary market. And if there is no allotment of shares in this IPO, then your application money will be refunded into your bank account or the fund will be unblocked if you have applied through ASBA.
