The clean energy sector is gearing up for a big capital market push. Companies across the renewable energy and solar manufacturing value chain are preparing to raise Rs 20,000 to 25,000 crore through initial public offerings (IPOs) in the current financial year.
The surge reflects rising investor appetite for climate-focused businesses, driven by strong policy support, growing corporate demand for green power and the need to build out domestic manufacturing capacity in line with India’s ambitious clean energy goals.
The clean energy fundraising drive in FY26 is being led by renewable energy producers Hero Future Energies, which is backed by KKR, and Brookfield-owned Clean Max, both of which are looking to raise around Rs 4,000–5,000 crore each, reports have said.
On the manufacturing side, solar module maker Avaada Group is planning a Rs 4,000-5,000 crore IPO for its module and solar cell business, Moneycontrol first reported on May 28. Peers such as Bengaluru-based Emmvee and Kolkata headquartered Jupiter International are eyeing Rs 2,500–3,000 crore each through their public, as Moneycontrol has reported.
Several other companies have already filed their draft documents. Kolkata-based Vikram Solar aims to raise Rs 1,500 crore, Delhi-based Saatvik Green Energy Rs 1,150 crore, Fujiyama Power Systems around Rs 700 crore and PMEA Solar Tech Solutions plan to raise fresh capital of around Rs 600 crore.
The likely fundraising by clean energy companies this fiscal follows NTPC Green Energy Ltd’s record Rs 10,000 crore-IPO in November, the biggest such share sale in the segment in India.
The stock is trading around its IPO price of Rs 108, after touching a 52-week high of Rs 155 on April 12.
Energy tide is turning green
The IPO pipeline underscores the scale of financing required to fuel India’s clean energy transition, said experts.
India aims to increase its non-fossil fuel electricity capacity to 500 gigawatts by 2030, as part of its broader commitment to become energy independent by 2047 and reach net-zero emissions by 2070.
“The increasing price shocks of fossil fuels and availability challenges have made countries more focused on energy self-sufficiency,” said Arka Mookerjee, Partner at law firm JSA. “Clean energy will require significant investments and companies in this sector are looking for funding to ramp up production to meet government targets.”
India’s largest green energy IPO — NTPC Green— was a sign of the Centre’s strategic shift in how energy is generated.
“Even coal giant Coal India has set up a renewable energy subsidiary, CIL Rajasthan Akshay Urja, pointing to the long-term nature of this shift,” said Mookerjee.
In FY25, solar module manufacturers Waaree Energies and Premier Energies’ IPOs were heavily subscribed. The Rs 4,321-crore Waaree offer was subscribed 76 times and the Rs 2,830-crore IPO of Premier Energies 74 times.
The Waaree stock is trading 92 percent above its issue price and Premier at 128 percent.
Investor interest in the clean-energy theme is being driven by a mix of tailwinds, experts said.
“There’s a clear policy push — India’s renewable targets, the PLI scheme for solar manufacturing, and basic customs duty on imports have all created strong momentum,” said Aakash Agrawal, associate director, Digital & New-age Businesses at Anand Rathi Investment Banking.
On the demand side, more corporates are committing to green power, offering developers longer-term offtake visibility — something capital markets reward, he said.
The momentum appears sustainable in the medium term, especially with global institutional investors stepping up exposure to ESG-linked assets and India emerging as a serious contender on that radar, Agarwal said.
Challenges
The sector, however, remains somewhat policy-dependent, and changes to tariffs or subsidies could trigger volatility in sentiment, he said.
On valuations, Agrawal said that while some clean energy companies are commanding premium multiples, investors are willing to pay for scale, track record, and integration, especially for businesses that have locked in long-term power purchase agreements (PPAs) or backward integrated manufacturing capabilities. He also flagged growing investor scrutiny, particularly of companies being valued on future projections rather than proven execution.
“We’ll likely see a clear separation between companies with durable moats — IP, low-cost manufacturing, diversified revenues — and those exposed to commoditisation or execution risk,” he said.
For solar module makers, the challenge may be especially acute. Despite India's aggressive push to build a local solar manufacturing ecosystem, upstream inputs such as polysilicon, silver paste, and critical chemicals are still largely sourced from China or a few other suppliers.
“Any disruption there — geopolitical or otherwise — can impact timelines and margins,” Agrawal said. For companies heading into IPOs, investors will be keen to assess how well insulated their supply chains are and what competitive edge they can demonstrate, be it technology, scale, or integration, he said.
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