Renewable Energy Companies Gear Up for $8 Billion IPO Surge

New Delhi, Oct 10 (KNN) In a major development for the renewable energy (RE) sector, around 8 to 10 companies are planning to raise between USD 5 billion and USD 8 billion (approximately Rs 41,500 crore to Rs 66,400 crore) through initial public offerings (IPOs) over the next two years.

This represents a significant shift, as RE firms have only raised Rs 3,570 crore since FY23, according to PRIME Database.

State-owned companies will dominate the IPO landscape, with NTPC Green Energy leading the charge. Its Rs 10,000 crore IPO is expected to hit the market next month.

Meanwhile, NLC India Renewables and SVJN Green Energy are gearing up for their listings in the next financial year and 2025, respectively.

Solar Energy Corporation of India (SECI), ONGC Green, and NHPC Renewable Energy are also eyeing the IPO route soon.

These companies have ambitious growth plans, reflecting India’s broader renewable energy goals. NTPC aims to achieve 60 GW of renewable capacity by 2032, while NLC targets 6 GW by 2030, up from its current 1.4 GW. SVJN Green Energy is looking to scale to 25 GW by 2030 and 50 GW by 2040.

Even smaller players in the RE space, including module manufacturers and EPC companies, are exploring IPOs. Onix Renewables, Navitas Greens, and Cosmic PV Power are all reportedly considering market listings in the near future, although none could be reached for comment.

Experts believe this wave of IPOs is fueled by strong capital expenditure (capex) in the power sector. Morgan Stanley predicts a surge in “green business monetisation,” and Axis Capital forecasts Rs 19 lakh crore in capex growth for power generation between FY24 and FY30, with Rs 10 lakh crore directed at renewables.

The government’s push for a 500 GW installed renewable energy capacity by 2030 is also playing a critical role. Industry leaders like Prateek Jhawar of Avendus Capital emphasise that RE firms are evolving beyond mere yield plays, moving into power trading, manufacturing, and storage, offering better returns.

As the sector continues to attract both public and private investment, experts anticipate a significant increase in IPOs and valuations, as RE companies position themselves for long-term growth in a transforming energy landscape.

(KNN Bureau)