Premier Energies Shares Surge 41% in 3 Days After Securing Rs 200 Crore Order from Uttar Pradesh Government
Premier Energies, a leading solar energy company, has seen its shares skyrocket by an impressive 41% in just three trading days after securing a significant order from the Uttar Pradesh government. The company announced that it has received an order worth Rs 215 crore for the supply, installation, and commissioning of 8,085 solar water pumping systems across various districts in the state.
The order, which is scheduled for completion by March 2025, falls under Component-B of the PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) Scheme. This initiative aims to ensure energy security for farmers in India while also contributing to the country’s commitment to increase the share of installed capacity of electric power from non-fossil-fuel sources to 40% by 2030.
Premier Energies’ Stellar Market Debut
Premier Energies made its debut on the stock market on September 3, 2024, with its shares listing at a massive premium of 120% over its issue price of Rs 450. The company’s shares opened at Rs 991 on the BSE and NSE, delivering a return of over 120% to investors who were allotted shares in the IPO.
The public issue, which ended for subscription on August 29, 2024, received an overwhelming response from investors, with the issue being subscribed 74.38 times. The strong demand was largely driven by Qualified Institutional Buyers (QIBs), who bid a staggering 216.67 times the shares on offer.
Expansion Plans and Growth Prospects
Premier Energies is an integrated manufacturer of solar PV cells and solar modules, with a focus on custom-made modules for specific applications. The company also provides end-to-end solar services for various power generation systems and operations and maintenance (O&M) services for executed projects.
With the recent order from the Uttar Pradesh government, Premier Energies is well-positioned to capitalize on the growing demand for solar energy solutions in the country. The company’s expansion plans and strong order book are expected to drive its growth in the coming years.
Analysts’ Recommendations
Analysts have mixed views on Premier Energies’ stock after its stellar market debut. While some suggest booking profits at current levels given the bumper listing day gains, others believe that investors with a high-risk appetite and long-term view can continue holding their positions.
Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said, “The stock looks fully priced-in but the management guidance is quite strong. Those who invested for listing gains can consider booking some profit. When the stock gives phenomenal listing gains, it is always better to take some profit off the table.”Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, also advised investors to book profit on the counter post its stellar listing.
Note: The information given in this article is from investment experts and brokerage companies, they do not represent Local Haryana. Before taking any investment related decision, you must consult a certified expert.
