ACME Solar Holdings IPO

To be announced
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About ACME Solar Holdings

ACME Solar Holdings Limited was established in 2015 to consolidate the ACME Group’s renewable energy business. It is a renewable energy company, specializing in solar, wind, hybrid, and firm and dispatchable renewable energy projects. It is one of the largest Independent Power Producers (IPP) in the country, with an operational capacity of 1,320 MW in solar projects and a significant pipeline of under-construction projects totalling 2,220 MW. The company focuses on developing, building, owning, operating, and maintaining utility-scale renewable energy projects while generating revenue through sales to government-backed entities.

Financials of ACME Solar Holdings

Strengths

  • ACME Solar Holdings has a comprehensive portfolio that includes solar, wind, hybrid, and firm and dispatchable renewable energy projects, making it one of the largest independent power producers in India.
  • The ACME Group has been an early entrant in the solar IPP business in India. It commissioned its first solar power plant in Fiscal 2012 and has developed a total of 2,719 MW of solar power projects to date.
  • The company has established power purchase agreements that ensure revenue generation from various government-backed entities, securing its financial stability.
  • The company has signed a memorandum of understanding with the Government of Uttar Pradesh for a significant closed-loop pump storage project, showcasing its growth strategy in renewable energy.

Risks

  • The renewable energy sector is subject to regulatory changes that can impact project approvals, tariffs, and operational guidelines, introducing uncertainty into future earnings.
  • The company’s revenue is significantly tied to government policies and incentives for renewable energy projects. Any changes in these policies could negatively affect profitability.
  • The company is dependent on the top 10 off-takers, which contributed 89.97% of revenue from operations in 2024.
  • ACME Solar does not have long-term agreements with suppliers and typically sources the required components through purchase orders.