KKR-backed Hero Future Energies to soon file draft IPO papers

Hero Future Energies IPO

• Hero Future Energies to file draft IPO papers in 2-3 weeks
• IPO size expected between Rs 3,000-4,000 crore
• Hero Future Energies has 7.2 GW renewable portfolio globally

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Private equity major KKR-backed renewable energy company Hero Future Energies is expected to soon file its draft IPO papers with the market regulator, people aware of the development told Moneycontrol. 

“Hero Future Energies has been working on its draft prospectus for a while now and now they are gearing up to file the document, which is expected in the next 2-3 weeks,” said one of the people cited above.

The IPO size is expected to be in the range of Rs 3,000-4,000 crore, including a mix of primary and secondary share sale, the person added, although he noted that the exact figures are still being finalized.

An email sent to Hero Future Energies did not elicit a response till the time of publication.

Clean energy IPO rush

Several companies from the renewable sector have tapped the primary markets to raise funds in the last two years, reflecting a broad investor appetite for the green energy companies.

Brookfield-backed CleanMax Enviro Energy Solutions Limited is launching its Rs 3,100 crore IPO on February 23, the first IPO from the renewable energy sector this calendar year. CleanMax supplies green power to commercial and industrial clients.

Avaada Group is planning a Rs 9,000 crore IPO for its module and solar cell business. Last year, solar module makers Bengaluru-based Emmvee and Kolkata-based Vikram Solar raised around Rs 5,000 crore collectively through their respective IPOs. Another Kolkata headquartered module and solar cell maker Jupiter International is also planning to Rs 2,500–3,000 crore through its initial share sale.

These fundraisings by clean energy companies follow NTPC Green Energy Ltd’s record Rs 10,000 crore-IPO in November 2024, the biggest such share sale in the segment in India. 2024 also saw the IPOs of solar module manufacturers Waaree Energies and Premier Energies’ IPOs, which 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.

Hero Future Energies portfolio

Hero Future Energies has a global portfolio of 7.2 gigawatts (GW) of renewable energy and 2.3 GW of BESS (battery energy storage system) assets across India, Ukraine, Vietnam, and UK comprising operating or under-construction projects. Apart from traditional wind and solar PV assets, the portfolio comprises emerging technologies projects such as energy storage, green hydrogen, and its derivatives.

Hero also supplies clean energy to corporate clients in sectors such as chemicals, refining, manufacturing, steel, cement, transportation. The company is backed by investors such as International Finance Corporation and KKR.