Premier Energies, a leading solar PV cell and module manufacturer, made a strong debut on the stock exchanges today, with its shares listing at a significant premium to the issue price. The stock opened at ₹991, a 120.22% jump over the IPO price of ₹450, and has since hit a high of ₹993.45, showcasing the strong investor appetite for the company’s shares.
The stellar listing performance comes on the back of a highly successful IPO that was subscribed 74.38 times, driven by strong demand from Qualified Institutional Buyers (QIBs) who bid 216.67 times the shares on offer. The IPO raised ₹1,291.4 crore, with the proceeds earmarked for expanding the company’s manufacturing capacity and general corporate purposes.
Premier Energies Share Price Targets and Predictions
According to market experts, Premier Energies’ strong fundamentals and growth prospects suggest that the share price is poised for further gains in the coming years. Here are some of the key share price targets and predictions:
- 2024: ₹1,320
- 2025: ₹1,430
- 2026: ₹1,545
- 2027: ₹1,678
- 2028: ₹1,786
- 2029: ₹1,898
These targets are based on Premier Energies’ strong position in the growing solar energy market, its diversified customer base, and its focus on innovation and technological advancements. The company’s strategic alignment with government initiatives promoting domestic solar production is also expected to drive growth in the coming years.
Premier Energies’ Business Overview
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 EPC services, including ground-mounted, rooftop, floating, canal bank, canal top and hybrid power generation systems, as well as O&M services for projects executed.
As of August 2024, Premier Energies had an aggregate annual installed capacity of 2 GW for solar cells and 4.13 GW for solar modules, spread across five manufacturing facilities in Hyderabad. The company reported a net profit of ₹198.16 crore and sales of ₹1,657.37 crore for the three months ended June 30, 2024, demonstrating its strong financial performance.
Analyst Views on Premier Energies
Analysts remain bullish on Premier Energies’ prospects, citing the company’s strong fundamentals and growth potential. Prashanth Tapse, Senior VP (Research) at Mehta Equities, expects a robust listing gain of more than 60-70% or even higher than the issue price of ₹450 per share, considering the strong subscription demand, market sentiment, and sectoral importance.
Shivani Nyati, Head of Wealth at Swastika Investment, also remains optimistic about Premier Energies’ listing, citing the company’s strong fundamentals, diversified customer base, robust order book, and recent surge in profitability. While the company has faced challenges such as underutilised capacity and historical losses, its strong financial performance in FY24 demonstrates its resilience and ability to navigate industry headwinds.
