Solarworld Energy Solutions make a strong market debut; stock list at 11% premium

Shares of Solarworld Energy Solutions made a strong Dalal Street debut on Tuesday, September 30, as the solar EPC solutions player was listed at Rs 389 on BSE, a premium of 10.83 per cent over issue price of Rs 351 apiece. The stock kicked-off its maiden trading session at a premium of 10.68 per cent over the issue price at Rs 388.50 on BSE.

As of the listing price, retail investors, who received a single lot of 42 equity shares, made a profit of Rs 1,596 on their investment of Rs 14,742. Similarly, HNI investors, who received 14 lots consisting of 588 equity shares, made a profit of Rs 22,344 on their investment of Rs 2,06,388.

Listing of Solarworld Energy Solutions has been on the expected lines. Ahead of its debut, Seshaasai Technologies was commanding a grey market premium (GMP) Rs 40 per share in the unofficial market, suggesting a listing pop of over 11 per cent for the investors. Its grey market premium stood around Rs 52-55 per share, during the bidding period.

The grey market premium (GMP) of Solarworld Energy Solutions has seen some correction despite a strong bidding amid muted market sentiments. Last heard, the company was commanding a premium of Rs 52-55 per share in the unofficial market, suggesting a listing pop of 14-15 per cent for the investors. The GMP stood around Rs 65, during the bidding phase.

The IPO of Solarworld Energy Solutions was open for subscription between September 23 and September 25. It had offered its shares in the price band of Rs 333-351 per share with a lot size of 42 shares. The company raised a total of Rs 490 crore from its IPO, which included fresh share sale Rs 440 crore and an offer-for-sale (OFS) of up to 14,24,251 equity shares worth Rs 50 crore.

The issue was overall subscribed 65.01 times, fetching over 16.32 lakh applications, attracting bids worth Rs 18,460 crore. The portion for qualified-institutional bidders (QIBs) was subscribed 70.43 times. The allocation for non-institutional investors (NIIs) was booked 64.73 times. The portion for retail investors was subscribed 49.15 times, respectively.

Incorporated in 2013, New Delhi-based SolarWorld Energy Solutions, is a solar energy solutions provider specializing in engineering, procurement, and construction (EPC) services for solar power projects. Its customer base includes SJVN Green Energy, Haldiram Snacks, Ethnic Food Manufacturing, and Samiksha Solarworld, among others.

Brokerage firms, tracking the issue, were positive on it, suggesting to subscribe to it for a long-term. Nuvama Wealth Management and SBI Capital Markets were appointed as the book running lead managers for the Solarworld Energy Solutions and MUFG Intime India served as the registrar of the issue.