Premier Energy IPO allotment status is under SEBI. The ongoing IPO of premier energy limited (PEL) sold shares before the ipo release date now facing questions.
Premium energy IPO sold their 19.2 mn shares to unregistered entities 5 days before IPO opening on 22 August. Which is now creating hurdles for the company as SEBI is in the actionable mode. It is unfair with those investors who kept waiting for the ipo opening date i.e 29 August 2024. PEL IPO anchor investor portion is limited to 30% of the total IPO by SEBI.
Premier Energy IPO allotment status now
Premier energy IPO opened on 27 August 2024 with an offer of 62.8 million shares at a price of Rs 427 to Rs 450 shares. Everything looked fine until news came in centre that 5 days before IPO on 22 August 2024 the PEL company had sold their 19.2 million shares i.e about 30.6% of its IPO size.
PEL sold shares to a selected group of individuals, mutual funds foreign institutional investors (FIIs), life insurance companies and corporates at Rs 450 per share, the upper end of the price brand which was not disclosed during the IPO.
| Selling shareholders name | Date of sale |
| Surendra Pal Singh Saluja | 23.08.2024. |
| Chirenjiv Singh Saluja | 23.08.2024. |
| Sarandeep Singh Saluja | 23.08.2024. |
| South Asia Growth Fund | 22.08.2024. |
29 August was the IPO closing date and during the IPO closing date the issue was subscribed 73.66 times.
PEL sold 30% shares 5 days before IPO opening
The IPO opening date was 27 August and closing date was 29 August but 30% shares were already allotted to the selective sector 5 days before opening ipo on 22 August which is a clear disadvantage to people who are waiting for it on the real opening date.
The IPO has huge demand and people were waiting to invest their money into it on the opening date i.e 27 August but PEL has favoured some selective individuals and industry. Premium energy is a reputed company established for 29 years that does not meet the expectations of real time investors.
Questions on PEL
After this SEBI has limited the anchor investor portion of PEL IPO to 30% of the total IPO size. Now a question arises whether this is the violation of SEBIs rule about anchor investors.
Most mutual funds participated and purchased the ipo shares when ipo was not publicly listed. Here, another question arises whether such funds are eligible to purchase Power Energy Limited shares before IPO opening date. Is it legal for these entities to participate in such allotment which favours some sectors.
Some investors had a disadvantage as they oversubscribed ipo because they were not aware of PEL 30% pre-sold news. A question is what are these genuine investors’ faults and who will recover their losses SEBI or PEL? People should become aware and must know how to invest in stocks wisely.
Is there any law against exceeding the size and time limit of the anchor book? If yes then when will be the action seen on ground.
If there is no law for entities to buy shares before ipo date and no law for companies allowing to buy shares before ipo date then it could happen again!
Now the ball is in SEBIS court, watch and wait what sebi is going to do. Till now this is the Premier energy ipo allotment status.
To invest wisely you should do a good research about the company. If you are beginner then you can also look at stock market classes near you in your city to gain basic knowledge.
Premier Energy Limited
Premier Energy Limited is a manufacturer of solar cells and solar energy modules established in the solar industry market for 29 years.
It manufactures solar photovoltaic (PV) cells, solar module sale of customisable and ad hoc solar-related products, solar project execution. Operation and maintenance services for projects also operated by PEL. PEL independently runs the power production through its 2 megawatt solar power plant in Jharkhand, India.
Conclusion – Now you are aware about Premier energy ipo allotment status. The unfair selling done by PEL favouring some sectors is disclosed here. SEBI limited the anchor investment portion to 30% and some questions raised against the selling and buying rules or freedoms are asked here.