Green Energy company Saatvik's IPO Growth Price Markup surges 14%, sparking debate: Is the Rs 900 crore offering worth investing in now?
Saatvik Green Energy IPO Opens, Valued at Rs 5,910 Crore
Saatvik Green Energy, a leading domestic manufacturer of solar photovoltaic modules, has launched its initial public offering (IPO) on September 19, 2021. The company aims to capture investor attention in the renewable energy sector.
The price band for the IPO is set between Rs 442 - 465 per share. The public offer consists of 15.05 million fresh shares worth Rs 700 crore and 4.3 million shares worth Rs 200 crore from existing promoters.
Saatvik Green Energy has allotted 5.79 million shares to anchor investors at Rs 465 each, raising Rs 269 crore before the IPO. Some of the big names that participated as anchor investors include HDFC MF, Nippon India MF, Bandhan MF, SBI General Insurance, and 360 One.
The IPO saw a subscription of 0.19 times on Day 1, with the retail quota booked 0.30 times and HNIs bidding 0.16 times. The usual split for the IPO allocation is 50% for institutional buyers, 35% for retail, and 10% for high-net-worth individuals (HNIs).
The GMP for Saatvik Green Energy IPO stands at Rs 65. Unlisted shares of the company are trading at Rs 530, indicating a premium of about 14% over the upper price band.
SBI Securities and Deven Choksey Research have recommended investors to SUBSCRIBE to the issue at the cut-off price. Deven Choksey Research assigned a "SUBSCRIBE" rating to the Saatvik Green Energy IPO, citing its fair pricing compared to peers and expectations for improved margins.
Saatvik Green Energy provides EPC services for both ground-mounted and rooftop solar projects. The fresh issue proceeds will be used for expansion, debt reduction, parent-level loan repayments, and general corporate purposes. Around Rs 477.23 crore will flow into Saatvik Solar Industries to set up a 4 GW solar PV module plant in Odisha. Another Rs 166.44 crore will be used to reduce subsidiary debt, while Rs 10.82 crore will go toward parent-level loan repayments.
Other upcoming IPOs include Seshaasai Tech, Anand Rathi, Atlanta Electricals, and Solarworld Energy, opening next week. The IPO market continues to show strong interest in renewable energy companies, with Saatvik Green Energy leading the way.
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