ACME Solar, the renewable energy arm of the ACME Group, has taken a big step towards financial optimization and long-term sustainability by securing an INR 2,491 crore long-term refinancing facility from State Bank of India (SBI) and Rural Electrification Corporation (REC). The facility will refinance 490 MW of operational renewable energy projects in Andhra Pradesh, Rajasthan and Punjab and comes at a reduced weighted average interest rate of 8.8%.
ACME Solar Refinancing – Strategic Move
The new refinancing facility, which is for 18 to 20 years (aligned with the project life), will replace existing debt taken at higher rates. This will not only reduce the interest burden but also improve the credit profile of ACME’s project companies, especially in Andhra Pradesh (160 MW) and Punjab (30 MW), which have an operational history of around 9 years. The Rajasthan project (300 MW), which has been operational for the past 3 years, is also covered under this facility.
According to Purushottam Kejriwal, Chief Financial Officer of ACME Solar Holdings, “The refinancing is in line with our strategy to create an efficient capital structure and reduce the cost of debt. We have been able to improve our project ratings by demonstrating our financial discipline and stability.”
This refinancing is structured under a co-obligor framework, which will benefit the Andhra Pradesh and Punjab projects with better credit ratings and overall improve the group’s financial standing.
ACME Solar Post-IPO Performance and Market Reaction
Following the announcement, ACME Solar shares saw good traction in the market and hit an upper circuit and were trading at INR 201.70—up by INR 9.60 or nearly 5%. The investor reaction is a reflection of the company’s ability to manage its balance sheet and long-term capital efficiently.
This is a time when renewable energy developers in India are looking to reduce their cost of capital to stay competitive as margins are tightening and infrastructure costs are rising. With solar and wind tariffs under pressure, financial agility is as important as operational performance.
ACME Solar Holdings launched its IPO on 6 November 2024, with an issue size of INR 2,900 crore. The issue was subscribed to 2.75X and landed in red with a loss of 12.40%. Post-IPO, the company made an all-time low of INR 173.85 per share, reflecting a loss of 39%.
However, even with the drop in share prices, two prominent brokerage houses, JM Financial and Motilal Oswal, are bullish on ACME Solar Holdings, seeing 59% upside with a target price of INR 330 per share.
Growth Ambitions
ACME Solar is a leader in India’s clean energy transition with a current operational capacity of 2,540 MW and a target of 6,970 MW in the next 3 years. The cost savings from this refinancing will support the company’s growth plans and give it more headroom to bid for future renewable energy projects and strengthen its balance sheet.
With the Indian renewable energy sector growing rapidly and getting strong policy and institutional support, ACME’s move is well-timed and strategic. As part of this financing, the projects get state power purchase agreements (PPAs)—a key risk mitigator in the power sector, making the debt package even more stable and attractive.
Final Word
ACME Solar’s refinancing announcement sends a clear message about where the company is headed—and what that says about its vision, maturity and commitment to discipline. That message is especially significant as the renewable energy sector gears up for a period of rapid growth and consolidation. Players with solid fundamentals—and a cautious approach to capital—are well-positioned to take the lead.
For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.