Saatvik Green Energy Shares List Flat on Debut
Shares of Saatvik Green Energy Ltd. listed flat over the IPO price on Friday, with the scrip opening at Rs 465 on the National Stock Exchange (NSE) and Rs 460 on the Bombay Stock Exchange (BSE), compared to the issue price of Rs 465 per share.
The latest grey market premium for the Saatvik Green Energy IPO was Rs 10 per share, indicating a listing price of Rs 475 apiece and a premium of 2%, as per Investorgain. This suggests that the market had expected a slightly stronger debut for the company.
IPO Subscription and Details
The IPO of Saatvik Green Energy was subscribed 6.57 times on the third and final day of bidding on September 23. The issue received bids for 9,38,08,672 shares against 1,42,71,970 offered. This strong subscription rate indicates a high level of interest in the company’s shares among investors.
The Qualified Institutional Buyers (QIBs) booked the issue 10.84 times, while the Non-Institutional Investors’ (NIIs) category was subscribed 10.04 times. Retail investors booked their quota 2.66 times. The strong participation from institutional investors is a positive sign for the company’s future prospects.
The IPO was a book-build issue of Rs 900 crore, comprising a fresh issue of 1.51 crore shares worth Rs 700 crore and an offer-for-sale (OFS) of 43 lakh shares amounting to Rs 200 crore. The price band for the IPO was set between Rs 442 and Rs 465 per share.
Use of Proceeds and Business Plans
The proceeds from the issue, to the tune of Rs 477.23 crore, will be invested in Saatvik Solar Industries Pvt., a subsidiary of the company, for setting up a 4-gigawatt solar PV module manufacturing facility in Gopalpur. This expansion plan is expected to increase the company’s production capacity and competitiveness in the renewable energy sector.
The company raised Rs 269 crore from anchor investors last week, ahead of its initial public offering. It allotted 57.94 lakh shares at Rs 465 apiece to nine anchor investors. This funding will help the company to achieve its growth plans and increase its market share in the solar panel manufacturing industry.
Saatvik Green Energy will also be using Rs 166.44 crore for prepayment or scheduled repayment of outstanding borrowings of the subsidiary, while it will use Rs 10.82 crore to repay certain borrowings at the parent level. The remaining funds will be set aside for general corporate purposes.
Company Overview and Industry Outlook
Saatvik Green Energy is one of the leading solar panel manufacturers in the country, with an annual production capacity of 4.8 GW. The company’s strong track record and experienced management team are expected to drive its growth in the coming years.
The renewable energy sector, particularly solar energy, is expected to see significant growth in India, driven by government initiatives and increasing demand for clean energy. The company is well-positioned to benefit from this trend and is expected to play a major role in the country’s transition to renewable energy.
Investment Outlook and Risks
Investors who have subscribed to the IPO should hold on to their shares, as the company’s long-term prospects look promising. However, they should also be aware of the risks associated with the renewable energy sector, including regulatory changes, competition, and technological disruptions.
New investors who are looking to buy the shares of Saatvik Green Energy should do their own research and consider the company’s financials, management team, and industry outlook before making a decision. They should also keep an eye on the company’s progress and adjust their investment strategy accordingly.
In conclusion, the listing of Saatvik Green Energy shares is a significant event for the Indian stock market, and the company’s prospects look promising. However, investors should be aware of the risks and challenges associated with the renewable energy sector and make informed decisions based on their own research and analysis.
