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The book-built issue of the Australian Premium Solar IPO is valued at Rs 28.08 crores. The 52 lakh shares are being issued entirely anew.
The subscription period for the Australian Premium Solar (India) IPO begins on January 11, 2024, and ends on January 15, 2024. On Tuesday, January 16, 2024, the allocation for the Australian Premium Solar (India) IPO is anticipated to be completed. The tentative listing date for the Australian Premium Solar (India) IPO is Thursday, January 18, 2024, on NSE SME.
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About Australian Premium Solar
One of the well-known names in the solar sector, Australian Premium Solar (India) will go public on January 11, 2024. The company manufactures both monocrystalline and polycrystalline solar panels and offers engineering, procurement, and construction services for these products. To help investors make wise decisions, the company’s business model, advantages, disadvantages, and future growth prospects are outlined here.
Australian Premium Solar IPO Overview
The 2013-founded Australian Premium Solar (India) Ltd. is an expert in the production of monocrystalline and polycrystalline solar modules. For projects involving homes, farms, and businesses, the company also provides engineering, procurement, and construction (EPC) services. Two varieties of solar panels are available in their product line: polycrystalline, which has a speckled appearance, and monocrystalline, which is recognized for higher efficiency and a uniform appearance.
The business also offers solar panels and solar pump installation for commercial, industrial, and residential clients. Over 10,000 solar panels have been installed so far, more than 9,500 of which are on rooftops in homes and more than 1,300 of which are combined with solar pumps for use in agriculture.
With about 169 workers, Australian Premium Solar (India) Ltd is a manufacturing company based in Sabar Kantha, Gujarat.
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Australian Premium Solar IPO Strengths
1. A group of knowledgeable managers and seasoned promoters run the business.
2. Establishing enduring connections with customers.
3. A business model that can grow.
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Australian Premium Solar IPO Weakness
1. Its sales are dependent on a number of significant clients. Losing any of these clients could have an effect on profits and sales.
2. Its operations in the Gujarat state’s geographic area are a major source of revenue. The company’s operations, finances, and general performance could all be impacted by any unfavorable adjustments or difficulties.
3. Has expertise in providing EPC services for solar pumps and solar rooftops. The state and federal governments provide it with subsidies for agricultural and rooftop residential projects. There may be fewer prospective clients if these subsidies are scaled back or eliminated.
4. Because it only has one manufacturing facility, any problems with its operations could have an impact on the business, financial results, and general health of the company.
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Australian Premium Solar IPO Details
The Australian Premium Solar IPO is slated to take place on January 11–15, 2024. Each share has a face value of ₹10, and the IPO will be priced between ₹51 and ₹54.
| Total IPO size (₹Cr) | 28.08 |
| Offer for sale (₹Cr) | – |
| Fresh issue (₹Cr) | 28.08 |
| Price band (₹) | 51 – 54 |
| Subscription dates | 11 Jan 2024 to 15 Jan 2024 |
Financial Performance of Australian Premium Solar IPO
The Australian Premium Solar company’s DRHP indicates a consistent rise in profit margins over time. The margins for the fiscal years FY21, FY22, and FY23 were 4.80%, 5.30%, and 6.20%, in that order.
| Period | Net Profit (Rs in millions) | Revenue from Operations (Rs in millions) | Cash Flow from Operations (Rs in millions) | Free Cash Flow (Rs in millions) | Margins |
| FY23 | 33.30 | 945.60 | 25.30 | 9.6 | 6.20% |
| FY22 | 27.00 | 981.20 | 26.70 | 26.3 | 5.30% |
| FY21 | 18.00 | 741.60 | 50.50 | 6.9 | 4.80% |
Key Ratios
Australian Premium Solar’s DRHP includes Return on Equity (ROE) percentages that illustrate the company’s performance in the most recent fiscal years. In FY21, ROE was 21.25%; in FY22, it rose to 24.26%; in FY23, it slightly declined to 23.01%.
| Particulars | FY23 | FY22 | FY21 |
| Sales Growth (%) | -3.43% | 32.09% | – |
| PAT Margins (%) | 3.51% | 2.75% | 2.42% |
| Return on Equity (%) | 23.01% | 24.26% | 21.25% |
| Return on Assets (%) | 8.50% | 7.79% | 5.14% |
| Asset Turnover Ratio (X) | 2.42 | 2.84 | 2.13 |
| Earnings per share (₹) | 2.29 | 1.86 | 1.24 |
Promoters of Australian Premium Solar IPO
1. Ranchhodbhai Patel, Mr. Chimanbhai.
2. Savitaben Chimanbhai Patel, the wife.
3. Mr. Chimanlal Patel, Nikunjkumar.
Chimanbhai Ranchhodbhai Patel, Savitaben Chimanbhai Patel, and Nikunjkumar Chimanlal Patel are the company’s promoters. Presently, 99.98% of the business is owned by the promoters. However, their ownership percentage will drop to 73.64% following the IPO’s introduction of new shares.
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Australian Premium Solar IPO Vs. Peers
With a face value of ₹10.00 per share, Australian Premium Solar (India) Limited has an EPS (Basic) of ₹2.29. Its P/E ratio is 23.58. Comparatively, Zodiac Energy Limited, which has a face value of ₹10.00 per share as well, has an EPS (Basic) of ₹2.18 and a higher P/E ratio of 40.79. These figures provide some insight into the two companies’ respective financial situations and solar industry performance.
Final Words
This article examines the Australian Premium Solar Initial Public Offering (IPO), which is set to begin subscriptions on January 11, 2024. It advises prospective investors to study the company’s details, financial statements, subscription status, and Grey Market Premium (GMP) in detail. In order to help investors make educated decisions, GMP provides important insights regarding the expected listing performance. Australian Premium Solar IPO GMP is Rs 24 higher than the issue price on January 9, 2024, indicating a 44.44% increase. Keep in mind that GMP is flexible.
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