Joining the list of renewable energy companies going public in India over the last 18-20 months, a solar module manufacturer and a solar EPC company debuted on the bourses, raising ₹13.64 billion (~$170 million) between them last week.

The initial public offerings (IPO) of module manufacturer Saatvik Green Energy and engineering, procurement, and construction solutions provider for solar water pumps GK Energy received an enthusiastic response from investors and were subscribed several times over.

These two IPOs come close on the heels of another module manufacturer, Vikram Solar, going public with a ₹15 billion (~$176 million) issue.

A raft of other IPOs by clean energy companies is in the pipeline this year. Companies testing their luck include solar manufacturers, independent power producers, and developers. A module mounting assembly fabricator is also in the fray, while a battery manufacturer has also announced plans to raise capital from the markets.

Prominent among them is Emmvee Photovoltaic Power’s ₹30 billion (~$352 million) public issue, which received approval from the market regulator, the Securities Exchange Board of India (SEBI), in July. Earlier this month, Prozeal Green Energy’s ₹7 billion (~$79 million) IPO also won SEBI’s nod.

Pure-play commercial and industrial renewable energy company CleanMax filed draft papers for its ₹52 billion (~$595 million) issue in August. So did independent power producer Juniper Green Energy, which is seeking to raise ₹30 billion (~$352 million), in June. In the same month, module manufacturer Rayzon Solar also filed its draft red herring prospectus (DRHP) for an IPO of ₹15 billion (~$176 million).

2024 was a busy year for clean energy IPOs, with major players such as NTPC Green Energy (~ $1.18 billion issue), electric vehicle manufacturers Ola Electric and Ather Energy, and developers like ACME Solar, as well as cell and module manufacturers Waaree and Premier Energies, going public.

Given that many more clean energy firms are lining up their DRHPs with the market regulators, 2025 could turn out to be even bigger.

Clean energy investments have become mainstream in India, closely following the growing demand for renewable energy. The government has set an ambitious target of 500 GW of non-fossil fuel-based energy capacity by 2030 and 1,800 GW by 20247. An assessment by the National Council of Economic Research identified a requirement of $1.6 billion per year until 2030 to achieve the goal.

According to Raj Prabhu, CEO of Mercom Capital, India saw 16 IPOs by clean energy firms in the 12 months leading up to July this year, reflecting strong demand and an expression of confidence in India’s renewable energy story.  He, however, cautioned that the IPO route can also be risky in light of recent energy-related policy upheavals, trade disputes, and potential overcapacity.

It remains to be seen how renewable stocks will fare in the near to medium term, especially those manufacturing modules and cells.

The 50% trade tariffs on imports imposed by the U.S., the biggest destination for India-made solar products, and the looming threat of potential adverse outcomes from antidumping investigations against Indian module exporters can pose serious challenges.

As things stand, it looks like there’s no stopping India’s clean energy IPO boom, despite geopolitical headwinds and overcapacity risks. Much will depend on how well these companies can navigate the risk landscape and remain competitive.