ACME Solar IPO shares to list at bourses today; here's what GMP signals

ACME Solar Holdings is scheduled to make its debut at the bourses on Wednesday, November 13. The renewable energy player is likely to have a tepid listing at the bourses, if one goes by the current signals from the grey market premium (GMP) , where it has lost all the grounds.

Ahead of listing, shares of ACME Solar Holdings were exchanging hands at a discount of Rs 4 per shares, suggesting a flop shop at debut. The issue may disappoint the investors on listing. The GMP stood at Rs 30 before the bidding opened for the issue.

Shivani Nyati, Head of Wealth at Swastika Investmart recommended a cautious approach on ACME Solar as she anticipates potential for volatility in the short term. "While the company's long-term growth prospects are encouraging, the near-term market dynamics and the impact of external factors could influence the stock's performance post-listing," she added.

Gurugram-based ACME Solar Holdings ran its IPO for bidding between November 6 and November 8. It had offered its shares in the price band of Rs 275-289 per share with a lot size of 51 shares. The company raised a total of Rs 2,900 crore from its IPO, which included a fresh share sale of Rs 2,395 crore and an offer-for-sale (OFS) of up to 1,74,74,049 equity shares.

The issue was overall subscribed just 2.75 times due to the last minute interest from the qualified institutional bidders (QIBs), who rescued the issue with 3.54 times bidding for the quota. The portions retail investors and employees were subscribed 3.10 times and 1.59 times, respectively. However, The portion for non-institutional investors (NIIs) was booked merely 97 per cent.

Manish Chowdhury, Head of Research at Stoxbox said that ACME Solar Holdings received a moderate investor interest but suggested investors who have been allotted shares consider maintaining their positions with a medium to long-term outlook.

ACME Solar Holdings, incorporated In June 2015, is an Indian electricity producer from renewable energy sources. It is one of the largest producers of electricity from wind and solar energy in India. The company specializes in the development, construction, ownership, operation and maintenance of large-scale renewable energy projects.

Brokerages mostly had a positive view on the issue and suggested subscribing for a long term. JM Financial, Nuvama Wealth Management, ICICI Securities, Kotak Mahindra Capital Company and Motilal Oswal Investment Advisors were the book running lead managers of the ACME Solar Holdings IPO, while Kfin Technologies was the registrar for the issu