Oriana Power, a prominent player in the solar energy solutions industry, has launched its initial public offering (IPO) for subscription today.
The IPO will only issue new shares and has garnered significant interest in the gray market.
As per the upper price of the price band, the shares are trading at Rs 103, indicating a Gray Market Premium (GMP) of 87.29%.
However, market experts advise investors to base their investment decisions on the company’s fundamentals and financials rather than signals from the gray market.
Oriana Power IPO Details
The Oriana Power IPO, valued at Rs 59.66 crore, will be open for subscription until August 3.
Investors can participate in the IPO within a price band of Rs 115 to Rs 118 per share, with a lot size of 1200 shares.
The offering will consist of 50,55,600 equity shares with a face value of Rs 10 each.
The IPO’s allocation will reserve 50% for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NII), and 35% for retail investors.
The allotment of shares is expected to be finalized on August 8 after the IPO’s successful closure.
Skyline Financial Services Private Limited will act as the registrar for the IPO. Oriana Power’s shares are scheduled to be listed on NSE’s SME platform, NSE SME, on August 11.
The funds raised through the IPO will be utilized for working capital requirements, investments in subsidiaries, and business expansion.
Details about Oriana Power
Oriana Power specializes in the installation of solar systems and operates in two primary segments.
Under the Capital Expenditure (CAPEX) model, the company engages in engineering, procurement, construction, and operation of solar projects.
In contrast, the Renewable Energy Service Company (RESCO) model offers solar energy solutions on a BOOT (build, own, operate, transfer) basis.
The company’s financial health has been continuously improving, with impressive growth in net profit over the years.
In FY 2021, Oriana Power recorded a net profit of Rs 2.82 crore, which surged to Rs 6.95 crore in the following FY 2022, and further jumped to Rs 12.69 crore in FY 2023.
Investors interested in Oriana Power’s IPO should carefully evaluate the company’s performance, business model, and future prospects before making investment decisions.