Stock of this debutant SME solar company has zoomed 215% over issue price

Shares of Alpex Solar were locked in the 5 per cent upper circuit at Rs 362.70 on the National Stock Exchange (NSE) on Friday a day after BofA Securities bought over 200,000 shares of the company via open market on its listing. 

With today’s gain, the stock price of Alpex Solar has zoomed 215 per cent against its issue price of Rs 115 per share. Around 115,000 shares changed hands and there were pending buy orders for 1.04 million shares on the NSE.

On Thursday, BofA Securities Europe SA purchased 220,800 equity shares of Alpex Solar at price of Rs 337.47 per share on the NSE via a bulk deal, as per exchange data. The names of the sellers were not known.

Currently, Alpex Solar is trading under Small and Medium Enterprises (SME) segment with series ‘ST’ (Trade for Trade Surveillance Segment (TFTS)) only on the NSE.

The exchange in a circular said that securities shall be transferred from ‘ST’ to rolling segment (SM) with effect from February 29, 2024.

The trades effected in this scrip will be in minimum market lot (i.e. 1,200 equity shares) and the same shall be modified by the exchange from time to time by giving prior market notice of at least one month.

SME Platform offers an entrepreneur and investor friendly environment, which enables the listing of SMEs from the unorganized sector scattered throughout India, into a regulated and organized sector.

The Alpex Solar IPO received robust response with the issue getting subscribed by 324.03 times.

Non-Institutional Investors (HNIs) portion was subscribed 502.31 times, while Qualified Institutional Buyers (QIB) portion got subscribed 141.48 times and the retail investors' portion was subscribed 351.89 times.

Alpex is a Solar Photovoltaic (PV) module manufacturer in North India. The company’s PV modules are manufactured using both monocrystalline and polycrystalline cell technologies.

The solar PV modules include bifacial, mono perc, half-cut. The company also provides integrated solar energy solutions, including engineering, procurement, construction (EPC) of DC/AC Solar Pumps.

India's energy demand is expected to increase more than that of any other country in the coming decades due to its sheer size and enormous potential for growth and development.

Therefore, it is imperative that most of this new energy demand is met by low-carbon, renewable sources. India's announcement that it intends to achieve net zero carbon emissions by 2070 and to meet 50 per cent of its electricity needs from renewable sources by 2030 marks a historic point in the global effort to combat climate change, the company said. 

Solar power installed capacity has increased by more than 18 times, from 2.63 GW in March 2014 to 49.3 GW at the end of 2021. In 2022, till November, India has added 12 GW of solar power capacity.

With a potential capacity of 363 GW and with policies focused on the renewable energy sector, Northern India is expected to become the hub for renewable energy in India, Alpex said in its Red Herring Prospectus.