ACME Solar eyes raising around $360m through IPO

The maiden offering is a combination of new shares and offer for sale.

ACME Solar Holdings Ltd has filed for an initial public offering (IPO) to raise INR3,000 crore ($360m) as it lays out plans to further expand its capacity.

According to its draft red herring prospectus, the maiden offering has a face value of up to INR2 ($0.024) per share. It will include fresh shares of up to INR2,000 crore ($267m) and an offer for sale of up to INR1,000 crore ($119,775) by ACME Cleantech Solutions, it noted. 

The offer also comprises an employee reservation portion.

ACME Solar said it may consider a pre-IPO placement of up to INR400 crore ($47.91m). If completed, the fresh issue will be reduced, it noted. 

The company said INR1,500 crore ($179,662) of the net proceeds will be used to pay debt availed by its subsidiaries. A portion will be allocated for general corporate purposes. 

ACME Solar tapped Nuvama Wealth Management Ltd, ICICI Securities Ltd, JM Financial Ltd, Kotak Mahindra Capital Co. Ltd, and Motilal Oswal Investment Advisors Ltd as the IPO’s book running lead managers.

INR1 = $0.012