Juniper Green Energy IPO: 47% Subscribed on Day 3

Juniper Green Energy’s Initial Public Offering was subscribed 47% overall by Day 3, 10:24 IST, with Qualified Institutional Buyers showing the highest interest.

The ₹1,800-crore IPO, an entirely fresh issue, opened on July 30 and closes on August 3, with a price band set at ₹214-₹225 per equity share. The lot size for the offering is fixed at 66 equity shares.

Key Subscription Figures

• Overall Subscription: 47%
• QIB Subscription: 1.19x
• Employee Portion: 1.73x
• Retail Portion: 23%
• NII Portion: 10%

Anchor Investment & Allocations

The company successfully raised ₹539.4 crore from anchor investors prior to the IPO opening. This segment saw significant participation from both international and domestic entities.

• Prominent anchor investors included Abu Dhabi Investment Authority (ADIA) and Nippon India Mutual Fund.
• Domestic mutual funds secured 74.79% of the total anchor book.
• The issue structure allocates up to 50% of the net offer to Qualified Institutional Buyers (QIBs).
• At least 15% is allocated to Non-Institutional Investors (NIIs).
• Not less than 35% is reserved for Retail Individual Investors (RIIs).

Grey Market Premium & Analyst Views

The Grey Market Premium (GMP) for Juniper Green Energy IPO stands at +1.75, implying an estimated listing price of ₹226.75, which is a 0.78% premium. However, expert analysis noted GMP fluctuations between ₹0.00 and ₹17 over the past 11 sessions, suggesting a negative outlook.

Brokerages have offered mixed reviews on the IPO’s investment potential, highlighting both strengths and significant concerns regarding valuation.

• SBI Securities recommends subscribing for the long term.
• They cited Juniper Green Energy’s strong position as a renewable independent power producer.
• The company’s operational capacity is 1,795 MW, with an additional 6,115 MW under construction.
• Projected annual revenues are ₹6,000-6,500 crore once fully operational.

• Swastika Investmart and Arihant Capital Markets expressed concerns over high valuation.
• The IPO is priced at over 270x FY26 trailing earnings.
• They suggested the issue is more suitable for long-term investors comfortable with execution, regulatory, and leverage risks.
• BP Equities maintains a positive long-term outlook, noting a 96.8% conversion rate for Wind-Solar Hybrid (WSH) and Firm and Dispatchable Renewable Energy (FDRE) tenders.

Proceeds Utilisation

The net proceeds from the fresh issue are primarily earmarked for debt reduction. A total of ₹683.24 crore will address the company’s outstanding borrowings, with an additional ₹728.69 crore allocated for its subsidiaries’ debt repayment.

The remaining funds are designated for general corporate purposes. ICICI Securities, HSBC Securities, JM Financial, and Kotak Mahindra Capital Company are the book-running lead managers for the IPO.