Saatvik Green Energy makes weak D-Street debut, lists at 1% discount

Saatvik Green Energy had a lackluster debut on Dalal Street, listing at a slight discount on Friday, September 26. The company’s shares opened at ₹460 on the BSE, 1.07% below its issue price of ₹465. On the NSE, the stock listed at par against the issue price.The ₹900 crore issue got subscribed 6.57 times during the three day bidding from September 19 to September 23.

The price band for the issue was fixed at ₹442-465 per share, with 32 shares in one lot.

The IPO included a combination of fresh issue of 1.51 crore shares aggregating to ₹700 crore, and an offer for sale of 0.43 crore shares aggregating to ₹200 crore.
The company has already raised ₹269.4 crore a day before the IPO, in which domestic institutional investors like HDFC Mutual Fund, Nippon Life India, Bandhan MF, SBI General Insurance Company, 360 ONE, among others, participated in the anchor book.Saatvik Green Energy claims that it is among the leading solar photovoltaic module manufacturers in India with operational capacity of about 3.80 gigawatt (GW) modules. The company will utilise ₹177.3 crore of net fresh issue proceeds for repayment of certain outstanding borrowings.

Further, ₹477.2 crore will be used for setting up of a 4 GW solar PV module manufacturing facility at Ganjam, Odisha through subsidiary Saatvik Solar Industries, and the remaining amount will be set aside for general corporate purposes.

Along with solar panels manufacturing, the company also provides engineering, procurement and construction (EPC), and operations and maintenance (O&M) services.

DAM Capital Advisors, Ambit, and Motilal Oswal Investment Advisors were the merchant bankers for the Saatvik Green Energy IPO. Kfin Technologies was the registrar to the issue.