Alpex Solar shares to debut on NSE SME on Thursday. Is multibagger listing in the offing?

After an overwhelming response to the IPO, shares of Alpex Solar will debut on the NSE SME platform on Thursday. Ahead of the listing, the company’s shares are commanding a bumper premium of Rs 150 in the unlisted market.

Considering the upper price band of Rs 115, the stock is expected to list at a premium of 130%.

However, it is important to note that grey market premiums are just an indicator of how the company’s shares are stacked up in the unlisted market and are subject to change rapidly.

The public offer of Alpex Solar was subscribed 300 times at close. The category reserved for retail investors was booked 350 times and that of NII investors was subscribed 500 times.

Alpex is a solar photovoltaic (PV) module manufacturer, predominantly popular in the Northern region of India. Its PV modules are manufactured using both monocrystalline and polycrystalline cell technologies.

The company’s portfolio of solar energy products consists of solar PV modules such as bifacial, mono-perc, half-cut. It also provides integrated solar energy solutions, including engineering, procurement, construction (EPC) of DC/AC solar pumps.The development of storage systems such as photovoltaic (PV) is essential to increase the capability of photovoltaic systems for replacing the existing conventional sources.With the growth in demand for photovoltaic installations, the adoption of the storage grid is likely to surge, which will drive the demand for solar energy storage lithium ion-powered batteries and will also drive the growth of the solar energy market.

The company proposes to utilise the net proceeds for funding capex towards the upgradation and expansion of its existing solar module manufacturing facility, setting up a new manufacturing unit for aluminium frame, working capital requirements and general corporate purposes.

For the period ended September 2023, the company has clocked revenues of 213 crore and net profit of Rs 7.6 crore.

Corporate Capital Ventures is acting as the sole book-running lead manager to the issue.

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