Premier Energy IPO Prediction: Will a Strong GMP Deliver 100% Return? | Market News

Tapse further said, “The long-term sector trend remains intact, but if we see an IPO gain of 80 to 100 percent, we would recommend allotted investors to take profits on the IPO day. Such an IPO gain would be justified due to the reasons mentioned above.”

According to him, the company's strategic alignment with government initiatives to boost domestic solar production, as well as its diversified customer base and recognition as a top player in module reliability, point to a promising future. In the long term, Tapse believes the market may value its leadership position at a premium multiple, which could also lead to decent gains post-listing. “Post-listing, the company may move from a reasonable valuation to an over-extended valuation in terms of valuation, which would be a reason for profit-taking attempts at high levels,” he added.

Meanwhile, Shivani Nyati, Head of Wealth at Swastika Investmart, remains optimistic about the listing of Premier Energies shares, saying that the company is poised for a remarkable stock market debut. In her view, the company's strong fundamentals and growth prospects underpin this enthusiasm. Nyati further pointed out that Premier Energies has a diversified customer base, a solid order book and a recent increase in profitability. Although the company has faced challenges such as underutilized capacity and historic losses, its strong financial performance in FY2024 demonstrates its resilience and ability to weather industry headwinds.

“While the solar industry remains highly competitive, Premier Energies stands out due to its strategic positioning and focus on innovation. Given the company's strong fundamentals, robust investor response and favorable market conditions, Premier Energies is poised for an excellent IPO,” Nyati added.

The public issue promised the issue of 28,697,777 new equity shares and an offer for sale in which promoters and investors will offload nearly 34,200,000 equity shares of face value of Rs 1 each. The shares were available at a price of Rs 427 to Rs 450 in a lot size of 33 shares.

First published: 02 September 2024 | 15:18 IS