NTPC To ACME Solar: Five Renewable Energy IPOs To Watch Out For
Acme Solar's IPO will open on Nov. 6, while the IPO of NTPC's renewable energy arm, NTPC Green Energy, has received SEBI approval this week itself.
The initial public offerings of solar module manufacturers Waaree Energies Ltd., and Premier Energies Ltd. received strong response from investors, followed by 60–80% listing gains.
With renewable energy transition being one of India's key focus areas, there are many more renewable energy companies that will and are likely to list on Indian exchanges soon.
Here is a look at them.
ACME Solar Holdings
Acme Solar Ltd. is an independent power producer, and one of the top 10 renewable energy players in fiscal 2024, as per Crisil Ratings.
The company aims to raise a total of Rs 2,900 crore, via a Rs 2,350 crore fresh issue and a Rs 505 crore offer for sale. Around Rs 1,800 crore of this issue will be used as an investment in the company's subsidiaries in order to repay or prepay its outstanding borrowings. The balance will be used for general corporate purposes.
The price band of the initial public offering—which will run from Nov. 6 to Nov. 8—is set at Rs 275 to Rs 289 per share.
As of fiscal 2024, ACME Solar has an operational capacity of 1.3 GW and 3.25 GW under construction. The company has a land bank of 7,000 acres and its fiscal 2025 operational capacity guidance is for 1.55 GW. As of fiscal 2024, the company generated revenues of Rs 999.4 crore per gigawatt and an Ebitda of Rs 936.5 crore per megawatts, according to a Bernstein note.
NTPC Green Energy
Listed NTPC's renewable energy arm, NTPC Green Energy recently received SEBI approval for its book-building public issue.
While the price band and IPO date for the issue are not yet available, the company aims to raise Rs 10,000 crore through the fresh issue play. As per NDTV Profit calculations, based on peer valuations, NTPC Green could command a market capitalisation of around Rs 75,000 crore, and its initial public offering could dilute 13% equity stake.
The company has an installed capacity of 2.9 GW, 8 GW of projects under construction, and 10.5 GW in the pipeline. The company has a land bank of 53,500 acres, that gives the company a visibility for 13 GW of capacity. The company also has transmission access of 11 GW.
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Vikram Solar
Solar panel producer and solar energy solution provider Vikram Solar, recently filed a fresh DRHP with SEBI. The company plans to raise funds through a fresh issue of up to Rs 1,500 crore and an offer for sale that will offload up to 17.45 million shares by its promoter group.
Vikram Solar plans to use around Rs 790 crore of the net IPO proceeds for capex, via an investment in its subsidiary VSL Green Power. The money will be used to set up a 3 GW solar cell and module manufacturing facility. As of fiscal 2024, the company had a solar module capacity of 3.4 GW, with a market share of 6%.
Also Read: 4 Upcoming IPOs To Watch Out For Next Week
NLC India Green Energy And SJVN Green Energy
As per recent media reports, listed players NLC and SJVN are likely to list their green subsidiaries, NLC India Green Energy and SJVN Green Energy on Indian stock exchanges soon. The listings are expected to come in 2025 through fresh equity offerings, in order to fund the expansion of their renewable energy projects. As per reports, one of these issues could materialise in the first half of the year itself.
