ACME Solar IPO Sees Strong Anchor Demand at 44.84% Allocation

ACME Solar Holdings IPO saw a significant anchor allocation response, with 44.84% of the total IPO size subscribed by anchor investors. Out of 100,346,022 shares on offer, anchors picked up 45,000,000 shares, demonstrating strong market confidence. The anchor allocation details were reported to the stock exchanges on 5th November 2024, just ahead of the IPO opening on 6th November 2024.

The book-built issue of ₹2,900.00 crores comprises a fresh issue of 82,871,973 shares aggregating to ₹2,395.00 crores and an offer for sale of 17,474,049 shares aggregating to ₹505.00 crores. The price band is set at ₹275 to ₹289 per share, with a face value of ₹2 per share. This includes a share premium of ₹287 per share at the upper end of the price band. The issue includes a reservation of up to 346,021 shares for employees offered at a discount of ₹27 to the issue price.

The anchor allocation process, which took place on 5th November 2024, saw strong participation from institutional investors. The entire anchor allocation was made at the upper end of the price band, ₹289 per share, indicating robust demand and confidence in the company's prospects.

After the anchor allocation, the overall allocation of the IPO looks as follows:

Notably, the 45,000,000 shares allocated to anchor investors were reduced from the original Qualified Institutional Buyers (QIB) quota. The QIB quota has been adjusted to ensure that the overall allocation to QIBs, including the anchor portion, remains within regulatory limits.

The lock-in period for anchor investors is an important aspect of the allocation. For the ACME Solar Holdings IPO, the lock-in details are as follows:

• Lock-in Period (50% Shares): 11th December 2024 
• Lock-in Period (Remaining Shares): 9th February 2025

This lock-in period ensures that anchor investors maintain their investments for a specified duration, stabilising the stock price after listing.

Anchor Investors in ACME Solar Holdings IPO

Anchor investors are typically large institutional investors allotted shares in an IPO before it opens to the public. The anchor allocation process is a crucial part of the IPO, as it helps in price discovery and builds confidence among retail investors. The strong response from anchor investors often sets a positive tone for the public issue and can influence the overall subscription levels.

On November 5, 2024, ACME Solar Holdings IPO completed the bidding for its anchor allocation. There was a robust response as the anchor investors participated in the book-building process. A total of 45,000,000 shares were allotted to 58 anchor investors. The allocation was done at the upper IPO price band of ₹289 per share, resulting in an overall anchor allocation of ₹1,300.50 crore. The anchors have already absorbed 44.84% of the total issue size of ₹2,900.00 crore, indicating strong institutional demand.

Out of the total allocation of 45,000,000 Equity Shares to the Anchor Investors, 15,003,690 Equity Shares (i.e., 33.34% of the total allocation) were allocated to 8 domestic mutual funds through 17 schemes.

Key IPO Details:

• IPO Size: ₹2,900.00 crores 
• Shares Allocated to Anchors: 45,000,000 
• Anchor Subscription Percentage: 44.84% 
• Listing Date: 13th November 2024 
• IPO Opening Date: 6th November 2024

About ACME Solar Holdings IPO and How to Apply for ACME Solar Holdings IPO

Incorporated in June 2015, ACME Solar Holdings Limited is an Indian electricity producer from renewable energy sources. The company is one of the largest producers of electricity from wind and solar energy in India.

As of 31st March 2024, the company had a total operational project capacity of 1,320 MW (1,802 MWp) in solar power projects. The company had 214 permanent employees in various departments. The company specializes in the development, construction, ownership, operation and maintenance of large-scale renewable energy projects through its in-house engineering, procurement and construction (EPC) division and operations and maintenance (O&M) team.

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