There seems to be no correlation between Cosmos Bank volumes and quarterly revenues.

Are State-Owned Companies Set to Dominate India’s Green Energy IPOs?

How Renewable Energy Firms are Preparing for $8 Billion in IPOs

The renewable energy sector in India is on the verge of a massive growth, with some of the biggest players planning to raise up to $8 billion via Initial Public Offerings (IPOs) in the coming years. As sustainability becomes a global priority and Government’s ambitious target of having installed Renewable Energy capacity of 500GW by 2030, India’s renewable energy companies are capitalizing on this trend to fund their expansion, providing a potentially lucrative opportunity for investors.

Major Companies Set to Hit the Market

• NTPC Green Energy : One of the most anticipated IPOs is from NTPC Green Energy, the renewable arm of India’s largest power producer, NTPC. It is expected to launch its IPO next month, aiming to raise a staggering ₹10,000 crore ($1.2 billion). This IPO will likely attract significant attention from institutional and retail investors alike, given NTPC’s dominance in the energy sector and its aggressive shift towards green power.
• NLC India : NLC India Ltd, another public sector entity, is planning to list its renewable energy arm by the end of FY26, aiming to boost its role in the country’s transition to clean energy. With significant solar and wind power assets, NLC’s move will mark its increased focus on renewable projects in line with the government’s sustainability goals.
• SJVN Green Energy : State-owned SJVN is also eyeing the public market, with plans to list its renewable energy division next year. The company is ramping up its solar and wind energy capacity, aiming to contribute meaningfully to India’s energy targets for 2030.
• SECI (Solar Energy Corporation of India) : SECI, another key player in the renewable space, is reportedly considering launching an IPO in the next year or two. As one of the primary agencies overseeing the country’s solar energy expansion, SECI’s public debut is highly anticipated.

The Momentum Behind These IPOs

Several factors are driving this IPO wave in the renewable energy sector. First, India’s commitment to achieving 500 GW of non-fossil fuel capacity by 2030 is pushing companies to expand aggressively. Renewable energy firms need large amounts of capital to build and maintain their infrastructure—particularly in solar, wind, and hydrogen energy projects.
Since FY23, renewable energy companies in India have already raised ₹3,570 crore ($430 million) through IPOs. With the energy transition gathering speed globally, these public offerings are not just about raising funds; they represent a larger push towards sustainable growth.

Why Should Investors Care?

This rush of renewable energy IPOs presents an exciting opportunity for investors to get involved in a sector that is not only rapidly growing but also essential for global sustainability. The increasing emphasis on Environmental, Social, and Governance (ESG) investing adds further appeal to these IPOs.

In addition to large companies like NTPC and SECI, smaller firms like Onix Renewables Limited, Navitas Green involved in renewable energy equipment manufacturing and engineering, procurement, and construction (EPC) are also likely to go public soon. Investors can expect strong long-term growth potential, driven by favorable government policies, international climate agreements, and a global shift towards green energy.

What are the views of the Experts?

According to industry experts, these IPOs could offer substantial returns in the medium to long term. “Renewable energy companies have tremendous growth potential, especially with the government’s ambitious targets,” said Pranav Haldea, Managing Director of Prime Database. He also highlighted that the public issue market for renewable firms is maturing, with several companies ready to take advantage of investor interest.

Investment firms like Morgan Stanley are also eyeing this space, indicating high expectations from global markets. “We are likely to see an uptick in green business monetisation”, Morgan Stanley said in a recent report.

Prateek Jhawar, managing director and head of infrastructure and real assets at Avendus Capital, said they expect renewable companies to come out with successful IPO’s, get good valuations and deliver good returns.

Conclusion

As India races to meet its renewable energy targets, the public issue market is becoming a hotspot for renewable energy firms looking to raise funds. With IPOs from giants like NTPC Green Energy and rising players like SECI and NLC India on the horizon, investors have an exciting opportunity to be part of the country’s green energy revolution.

For anyone interested in clean energy and sustainable investing, these upcoming IPOs offer the potential for both financial returns and environmental impact. Keep an eye out for NTPC’s IPO next month—it could be the first of many success stories in India’s renewable energy boom.

Share your views and thoughts.

The only concern i have is on the KMP salaries (for Kundan & Parth) & Related Party Transitions. (as the DRHP says promoter has other companies in the same business – need a deeper dive)

Positives –

1. Strong growth numbers from sales and profitability perspective.
2. High Capex in progress
3. Promoter shareholding ~70%
4. Management succession in place (Kundan & Parth)
5. Increased revenue contribution from Fine & Specialty Chemicals
6. R&D expenses – ~5%

Negatives –

1. Low cash generation 70% when compared with PAT – last 9 years
2. Capex expenses are not met. Negative FCF & increase in debt (last 2 years)
3. Promoter salary increasing disproportinaletluy ( for Kundan & Parth)
4. Need to do deeper dive in Related party transactions
5. Regular Equity dilution

Started a tracking position.

No idea about the right … generally rights come less than 10-20% on current market price!!! Might be that reason, they are lowering the CMP !!!