Solarworld Energy IPO Day 3: Issue subscribed 13 times so far; check GMP and key details

Solarworld Energy Solutions' IPO, valued at ₹490 crore, has been subscribed 13.04 times so far on the third day of bidding. The issue closes for subscription today.

According to stock exchange data, retail investors showed robust demand, subscribing 28.21 times to the 14.71 lakh shares reserved for them. The non-institutional investors portion was booked 24.37 times.

Meanwhile, the category reserved for qualified institutional buyers was booked 2.32 times.

According to market observers, the grey market premium (GMP) for the IPO

is currently around 15%. GMP is an unofficial ecosystem where shares start trading before the allotment in the IPO and continue till the listing day. Most investors track the GMP to get an idea of the listing price.

The price band for the IPO has been fixed at ₹333 to ₹351 per share, with a lot size of 42 shares. The minimum investment required for retail investors is ₹14,742.

Ahead of the IPO opening, Solarworld Energy Solutions raised ₹220.5 crore from 14 anchor investors on September 22.

VQ Fastercap Fund was the largest anchor investor, acquiring 12.79 lakh shares worth ₹44.89 crore. Other notable investors included Pinebridge Global Funds, Singularity AMC, and Motilal Oswal AMC, each purchasing 7.09 lakh shares worth ₹24.89 crore.

Additional buyers in the anchor book included Citigroup Global, BNP Paribas, Varanium Dynamic Trust, Nuvama Private Investment Trust, Cognizant Capital, LC Pharos, India Max Investment Fund, Capri Global, Golden Equity Fund, and Astrone Capital.

The company plans to use ₹420 crore of the fresh issue proceeds (including pre-IPO funds) for establishing a 1.2 GW solar PV TopCon cell manufacturing facility in Pandhurana, Madhya Pradesh through Kartik Solarworld. The remaining funds will be allocated for general corporate purposes, while the offer-for-sale proceeds will go to the selling shareholder.

Incorporated in 2013, Solarworld Energy Solutions operates in the solar energy sector, specialising in EPC services for solar power projects. The company provides end-to-end solutions to public sector undertakings (PSUs) and commercial and industrial (C&I) clients.

Nuvama Wealth Management and SBI Capital Markets are the book-running lead managers for the IPO, while MUFG Intime India is the registrar.

The allotment for the IPO is expected to be finalised on September 26, and the company’s shares will be listed on the BSE and NSE with a tentative listing date set for September 30.