Alpex Solar's IPO oversubscribed by 51 times, receives overwhelming response from investors

Alpex Solar's IPO has garnered an overwhelming response from investors, with subscription reaching nearly 51 times on the second day of bidding. The SME IPO, valued at Rs 74.5 crore and closing on February 12, comprises a fresh equity issue of 64.8 lakh shares.

Despite a slight decrease from the previous day, Alpex Solar's Grey Market Premium (GMP) remains approximately 160% higher than the offer price.

The IPO's price band is set at Rs 109-115 per share, allowing investors to bid for 1200 shares in one lot. Qualified institutional buyers are allotted 50% of the offer, while 35% is reserved for retail investors and 15% for non-institutional investors.

Alpex Solar specializes in manufacturing solar photovoltaic (PV) modules, primarily in Northern India, utilizing both monocrystalline and polycrystalline cell technologies. Its product portfolio includes bifacial, mono-perc, and half-cut solar PV modules, along with integrated solar energy solutions such as engineering, procurement, and construction (EPC) of DC/AC solar pumps.

The company aims to utilize the IPO proceeds for capital expenditure towards enhancing and expanding its existing solar module manufacturing facility, establishing a new manufacturing unit for aluminum frames, fulfilling working capital requirements, and covering general corporate purposes.

For the period ending September 2023, Alpex Solar reported revenues of Rs 213 crore and a net profit of Rs 7.6 crore.

Corporate Capital Ventures serves as the sole book-running lead manager for the issue.