Acme Solar Shares Surge 8% on Rs 2,800-Crore QIP Launch to Reduce Debt and Increase Public Float

Acme Solar Holdings Sees Sharp Rise in Shares Following QIP Announcement

Shares of Acme Solar Holdings Ltd, a leading renewable energy company, surged on Tuesday after the company launched a qualified institutional placement (QIP) to raise up to Rs 2,800 crore. The funds raised through the QIP will primarily be utilized for debt reduction and general corporate purposes.

As of afternoon trade, Acme Solar shares were trading at Rs 330.25, marking a 7.5 percent increase for the day. Notably, the company's stock has gained 28 percent over the past year, outperforming the Nifty 50, which has declined by 5.6 percent during the same period. With a market capitalisation of approximately Rs 20,000 crore, Acme Solar has established itself as a significant player in the renewable energy sector.

According to the terms of the QIP, the company has set a base size of Rs 2,600 crore, along with a greenshoe option of Rs 200 crore. The indicative issue price has been fixed at Rs 279.50 per share, representing a discount of about 9 percent to Monday's closing price. Furthermore, the company has set the floor price for the issue at Rs 294.13 per share, a discount of around 4.2 percent to the previous closing price of Rs 307.2 per share. The final issue price will be determined through the book-building process.

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If the QIP is fully subscribed, the company will experience an equity dilution of approximately 11.82 percent of its pre-issue outstanding equity share capital. This move is expected to not only strengthen the balance sheet through debt repayment but also enable the company to comply with the Securities and Exchange Board of India's minimum public shareholding requirements. Currently, promoters hold about 83.3 percent of the company's equity.

The fundraising comes at a strategic time for Acme Solar, as the company continues to expand its renewable energy and battery storage portfolio. Management has emphasized the importance of timely project execution and the addition of new orders. The company is also advancing large-scale battery energy storage system (BESS) projects and expects its future operational portfolio to include around 10 gigawatt-hours of battery storage capacity and 1.5 gigawatts of contracted generation capacity, subject to transmission connectivity and other external factors.