One of the renewable energy stocks engaged in focuses on the development and operation of solar, wind, and hybrid energy projects. The stock has jumped an intraday of 6.70 percent after securing an order worth Rs. 1,988 crores from PFC for the solar-wind hybrid renewable energy project and the 300 MW SECI ISTS Solar Project at a tariff of INR 3.05 per unit.
Stock Price Movement:
In Thursday’s trading session, ACME Solar Holdings Limited’s share jumped to an intraday high of 6.70 percent from the intraday low of Rs. 231.250. The stock opened at Rs. 240.05 and is currently trading at Rs. 239, with a high of Rs. 246.75 and a previous close of Rs. 236.65. The market capitalization now stands at approximately Rs. 14,410.17 crore.
What Happened:
ACME Solar Holdings Limited, through its subsidiary ACME Renewtech Private Limited, has secured Rs. 1,988 crore in term loan financing from Power Finance Corporation (PFC) for a 300 MW solar-wind hybrid renewable energy project in Rajasthan and Gujarat.
Additionally, ACME Solar won a 300 MW solar power project under the SECI-ISTS XVIII scheme at Rs. 3.05 per unit. The project, leveraging existing infrastructure in Bikaner, is set to commence by June 2025, benefiting from the ISTS waiver and aligning with government renewable energy incentives.
Projects and Capacity Expansion:
ACME Solar Holdings Limited is expanding its capacity with 4.2 gigawatts currently under construction and plans to commission 900 megawatts in the upcoming financial year.
The company is focused on securing long-term Power Purchase Agreements (PPAs) to ensure stable cash flows. Its upcoming projects include the Bikaner 2 plant and its first wind plant, which will initially operate in the merchant market before shifting to long-term PPAs.
Future Outlook:
ACME Solar Holdings Limited’s management remains positive about growth, driven by strong demand for renewable energy and enhanced operational efficiency.
The company aims to maintain a sustainable debt-to-EBITDA ratio while targeting mid-teens returns on new projects. Management is also considering the possibility of exploring Infrastructure Investment Trusts (InvITs) for future monetization, although there are no immediate plans.
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Financial Highlights
ACME Solar Holdings Limited reported a strong financial performance for H1 FY25, achieving 5.5 percent YoY revenue growth, reaching Rs. 635 crores. The company generated an EBITDA of Rs. 558 crores, maintaining a robust margin of 87-88 percent.
The company’s PAT grew by 10.6 percent YoY to Rs. 152 crores. ACME plans to reduce its net debt of Rs. 8,755 crores by Rs. 1,800 to Rs. 2,000 crores using IPO proceeds.
For FY24, ACME Solar Holdings saw its revenue increase from Rs. 1,294.90 crore in FY23 to Rs. 1,319.25 crore, reflecting a 1.88 percent growth. The company also turned a net loss of Rs. 3.17 crore in FY23 into a net profit of Rs. 697.78 crore in FY24.
IPO Details
ACME Solar Holdings Limited launched 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 shares were listed on the BSE and NSE on November 13, 2024. The proceeds will primarily be used to expand solar projects, repay existing debt, and invest in advanced technologies to improve 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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