As the allotment of the Solarworld Energy Solutions IPO concluded, investors’ attention has shifted towards the potential listing gains of the stock, which is set to debut on the Indian stock market tomorrow, September 30.
The expected listing gains, gauged through the grey market, suggest that the stock might make a healthy debut. According to market sources, the grey market premium (GMP) for the Solarworld Energy Solutions IPO stands at ₹38 per share as of today.
This indicates that Solarworld Energy Solutions IPO shares are likely to list 10.25% higher than the upper price band of the issue price of ₹351 apiece. The grey market premium reflects investors’ willingness to pay a premium over the IPO price and is not the final listing price for the stock.
Solarworld Energy Solutions IPO details
During its bidding period between September 23 and 25, the IPO received a strong response from all sections of investors, with bids coming in for 52.58 crore shares against the offered 76.78 lakh shares, resulting in a subscription of 68.49 times, as per exchange data. The price band for the issue was set between ₹333 and 351 per share.
This response for a mainboard IPO is also one of the largest seen in September so far and one of the biggest in the current calendar year.
The ₹490 crore issue is a combination of a fresh issue of 1.25 crore shares aggregating to ₹440 crore and an offer for sale of 0.14 crore shares aggregating to ₹50 crore.
The funds raised from the new share issuance will be allocated for investment in the company’s subsidiary, Kartik Solarworld, to partially finance the creation of a 1.2 GW Solar PV TopCon manufacturing plant in Pandhurana, Madhya Pradesh, as well as for general corporate needs.
About Solarworld Energy
The company claims that it is one of the leading solar energy solutions providers, specializing in engineering, procurement, and construction services for solar power projects.
It commenced operations in 2013, offering comprehensive, end-to-end, and cost-effective solutions for the installation of solar power projects, which comprise public sector undertakings as well as commercial and industrial clients.
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