Following the Approved List of Models and Manufacturers (ALMM) implementation in April 2024, domestic solar manufacturers now hold a monopoly in the Indian market, bolstering investor confidence. According to Ravi Shekhar, managing director at Eninrac, this IPO surge reflects rising demand, driven by domestic content requirements and import restrictions on Chinese modules. However, he noted that delays in the Production-Linked Incentive (PLI) scheme are slowing growth, making IPOs an attractive alternative for capital.

Major players in the sector are also ramping up funding efforts. Solar panel manufacturer Goldi Solar plans an IPO for 2026, while Gautam Solar aims to raise Rs 10 billion within the next 12-18 months for a 2 GW solar cell manufacturing project. In October, Waaree Energies’ Rs 43.21 billion IPO saw a 3.3x subscription on its first day, showcasing strong investor interest. Hyderabad-based Premier Energies and Kolkata-based Vikram Solar have also announced IPOs of Rs 28.30 billion and Rs 15 billion, respectively.

CRISIL's Sehul Bhatt highlighted the potential in the solar module manufacturing sector, with investments exceeding Rs 1 trillion anticipated by FY30 for PV module manufacturing and backward integration. The government’s policy and growing demand for solar energy could potentially double manufacturing capacity from FY24 to FY30, reducing dependency on imports for essential components like cells and wafers.

Export opportunities, particularly in the US and EU markets, further drive IPO activity, especially as Indian OEMs face fewer restrictions compared to their Chinese counterparts. Waaree Energy, for instance, reported a fivefold revenue increase between FY22 and FY24 due to strong export growth, signaling the high profitability of these markets.

Eninrac’s Shekhar noted that larger facilities dedicated to specific configurations would streamline production, improving operational efficiency and reducing import reliance on ancillary components like glass and black sheets. Sanjay Kumar Mittal, Senior Director, Eninrac, added that the high performance of renewable energy stocks enhances financial health and creditworthiness for IPO-raising companies, positioning them for substantial growth over the next five years. This IPO wave is set to fuel heavy investment in R&D, driving a major transformation in India’s solar industry. (ET)