Premier Energies IPO shares to turn multibagger on listing today? Here's what GMP suggests

Shares of Premier Energies are set to make a strong Dalal Street debut on Tuesday, September 03 and the stock may turn a multibagger on its listing. If one goes by the grey market premium for the issue, Premier Energies is likely to double investor's money on its listing.
 

Ahead of its listing, shares of Premier Energies were commanding a Grey market premium (GMP) of Rs 500-505 per share over its issue price, suggesting a superb listing pop of more than 110 per cent to the investors. The premium in the unofficial market has remained more than 100 per cent since the closure of the issue.
 

Premier Energies is poised for a remarkable stock market debut. The IPO has garnered immense investor interest, evidenced by a staggering subscription of 75 times and a sky-high grey market premium, said Shivani Nyati, Head of Wealth, Swastika Investmart.
 

"Although the solar manufacturing industry remains competitive, Premier Energies' strategic positioning and focus on innovation differentiate it," she added. Premier Energies is poised for an outstanding listing on the back of strong fundamentals, robust investor response, and favorable market conditions.
 

The IPO of Premier Energies ran for bidding between August 27 and August 29. The Telangana-based company had offered its shares in the fixed price band of Rs 427-450 per share with a lot size of 33 shares. It raised about Rs 2,830.40 crore via its primary offering, which included a fresh share sale of Rs 1,291.40 crore and an offer for sale of 3.42 crore shares.
 

Premier Energies turned out to be a historic issue in terms of getting subscribed. The issue fetched bids for about Rs 1.49 lakh crore, with quota for institutional investors getting bids worth Rs 1.20 lakh crore. The issue saw a solid bidding and was overall subscribed 74.38 times.
 

Premier Energies’ shares may list with strong gains following a strong investor interest and sound fundamentals of the company. said Master Capital Services.
 

"On the back of reasonable valuation, the company's ability to take advantage of the market demand for renewable energy, and the chance to invest in India's second-largest integrated solar cell and module manufacturer, there has been a significant increase in investor demand," it said.
 

On an individual basis, the quota for qualified institutional bidders (QIBs) was booked a stellar 216.67 times The quota for non-institutional investors was subscribed a whopping 50.04 times. The portion reserved for employees and retail investors saw bidding for 11.43 times and 7.69 times during the bidding process.
 

Premier Energies is poised for a strong market debut, expected to list with a premium of 110-120 per cent, said Akriti Mehrotra, Research Analyst at Stoxbox. Investors should consider holding their shares for the medium to long term, she said, citing solid fundamentals of the company.
 

Premier Energies manufactures integrated solar cells and solar panels. Its product portfolio includes cell, solar module, monofacial modules, bifacial modules, EPC solutions and O&M solutions. Incorporated in April 1995, the company has five manufacturing units, all of which are situated in Hyderabad, Telangana.
 

Brokerages were mostly positive on the issue suggesting investors to subscribe to it for a long term. Kotak Mahindra Capital, ICICI Securities and JP Morgan India were the book running lead managers of the Premier Energies IPO, while Kfin Technologies served as the registrar for the issue.