South Asia Growth Fund III May Sell up to 5.5% Stake in Premier Energies

Shares of solar energy player Premier Energies Ltd are in the spotlight as a major shareholder, South Asia Growth Fund II Holdings, plans to offload a 5.5% stake in the company via a block deal valued at approximately ₹2,628 crore.

What Are the Key Deal Details and Valuation Metrics?

According to reports, the investor will sell 2.5 crore shares through the block deal route on June 10. The floor price has been fixed at ₹1,051.5 per share, which is at a 1 percent discount to the previous trading session’s closing price.

Following the deal, a 150-day lock-in period will be imposed on the fund, restricting it from making further sales during that period. As of March 2025, the fund held an 11.1% stake in Premier Energies.

How Will the Deal Impact Shareholding and Promoter Control?

Premier Energies remains a promoter-led company, with the Promoter and Promoter Group holding 64.25% as of March 31, 2025. The public holds 35.03 percent, while 0.72% is held by employee trusts, maintaining the total equity at 100 percent.

Key Financial Highlights from Q4 FY25

Premier Energies reported strong financials for the quarter ended March 31, 2025:

• Total income: ₹1,68,019.50 lakh
• Profit before tax: ₹36,809.30 lakh
• Earnings Per Share (EPS): ₹6.16

Another financial disclosure for the same quarter reflects:

• Total income: ₹19,183.80 lakh
• Profit before tax: ₹7,826.10 lakh
• Net profit: ₹6,287.60 lakh
• EPS: ₹1.39

For the December 2024 quarter, the company posted:

• Total income: ₹31,388.40 lakh
• Net profit: ₹3,588.90 lakh
• EPS: ₹0.80

This sequential growth in income and profitability signals strong operational momentum ahead of the stake sale.

What Is the Market Context and Outlook for the Sector?

The timing of the stake sale coincides with the increasing push for renewables in India’s energy space. The country is aiming for 500 GW of renewable energy capacity by 2030, under which solar capacity is set to rise from 82 GW in FY24 to 214 GW by FY30. Premier Energies, which is in the operating mode in the utility-scale and industrial solar sectors, is well-positioned to gain from its expansion plans. As the market absorbs this large deal, investor attention will remain focused on the stock’s liquidity and price movement in the short term.

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