One of the renewable energy stocks focusing on the development and operation of solar, wind, and hybrid energy projects. The stock is in focus after the commissioning of an aggregate capacity of 1023.05 MW of solar power projects in Rajasthan by its wholly owned subsidiaries.
Stock Price Movement:
With a market capitalization of Rs. 14,482.78 crore, the shares of ACME Solar Holdings Limited were trading at Rs. 239.35 per equity share, down nearly around 4.45 percent from its previous day’s close price of Rs. 250.50.
What Happened:
ACME Solar Holdings Limited (ASHL) has successfully commissioned 1,023.05 MW of solar capacity in Jaisalmer, Rajasthan, through four co-located projects. The commissioning has increased ASHL’s total operational renewable generation capacity to 2,363 MW.
The commissioned capacity includes ACME Dhaulpur Powertech Private Limited (238 MW), ACME Deoghar Solar Power Private Limited (253 MW), ACME Phalodi Solar Energy Private Limited (260.05 MW), and ACME Raisar Solar Energy Private Limited (272 MW), totaling 1,023.05 MW out of the planned 1,200 MW capacity.
Of the total planned capacity, 177 MW is already energized and in the process of commissioning. This represents one of the largest single-location projects commissioned by any renewable energy company in India this year.
Projects and capacity expansion:
ACME Solar Holdings Limited is expanding its capacity with 4.2 gigawatts under construction and plans to commission 900 megawatts in the next financial year.
The company focuses on securing long-term PPAs for stable cash flows. The company’s upcoming projects include the Bikaner 2 plant and its first wind plant, initially operating in the merchant market before transitioning to long-term PPAs
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Future Outlooks:
ACME Solar Holdings Limited’s management remains optimistic about growth, driven by strong demand for renewable energy and improving operational efficiency.
The company focuses on maintaining a sustainable debt-to-EBITDA ratio while targeting mid-teen returns on new projects. Management is open to exploring InvITs for future monetization, though no immediate plans exist.
Financial Highlights
ACME Solar Holdings Limited reported a strong financial performance for H1 FY25, achieving a 5.5% YoY revenue growth to Rs. 635 crores. The company generated an EBITDA of Rs. 558 crores, maintaining a healthy margin of 87-88%. PAT rose 10.6% YoY to Rs. 152 crores. ACME plans to reduce Rs. 1,800 to Rs. 2,000 crores of net debt, which stood at Rs. 8,755 crores, by utilizing IPO proceeds.
ACME Solar Holdings’s revenue has increased from Rs 1,294.90 crore in FY23 to Rs. 1,319.25 crore in FY24, which has grown by 1.88%. The company has converted its net loss of Rs. 3.17 crore in FY23 to a net profit of Rs. 697.78 crore in FY24.
IPO Details:
ACME Solar Holdings Limited came for an Initial Public Offering (IPO) from November 6 to November 8, 2024, with an issue size of Rs. 2,900 crores. The IPO consists of a fresh issue of Rs. 2,395 crores and an offer for sale of Rs. 505 crores, with shares priced between Rs. 275 and Rs. 289 each.
The share was listed on the BSE and NSE on November 13, 2024. The proceeds will primarily be used for expanding solar projects, repaying existing debt, and investing in advanced technologies to enhance operational efficiency.
Company Overview:
ACME Solar Holdings Limited was incorporated in June 2015 and is headquartered in Gurugram, Haryana. The company is one of India’s largest producers of solar and wind-powered electricity.
The company specializes in developing, constructing, and operating large-scale renewable energy projects through its integrated engineering, procurement, construction, and maintenance divisions.
Written By – Nikhil Naik
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