Apollo Green Energy, a renewable energy division of Apollo International Group, has set its sights on an initial public offering (IPO) by the end of 2025. This company, deeply rooted in the engineering, procurement, and construction (EPC) sector, is carving out a significant role in India’s push towards sustainable energy.
Apollo Green Energy IPO – Utilization of Funds
The funds raised from the IPO will primarily be allocated to green projects. Apollo Green Energy plans to focus on:
- Solar power projects will receive a significant share of the investment.
- Battery storage systems.
- Green hydrogen initiatives.
- Electric vehicle (EV) charging infrastructure.
“All our funds will be addressing green project requirements only. The main focus would continue to be solar projects, and the remaining part will go to related segments,” said Sanjay Gupta, CEO of Apollo Green Energy.
Shift to Solar Manufacturing
Apollo Green Energy has completed 400 MW of solar installations so far. By FY27, the company aim to have a 500 MW production line and be a developer and producer of solar products. Land for the facility has already been identified
Apollo Green Energy is also venturing into green hydrogen, a critical component of the clean energy transition. The company is in advanced discussions with two international technology providers to execute their green hydrogen technology in India.
Order Book and Revenue Forecasts
The company’s order book is currently worth INR 3,500 crore, and by the end of 2025, it hopes to have grown to INR 10,000 crore. With 80% of the portfolio consisting of solar projects, this growth strategy primarily relies on renewable energy sources. Wind, hybrid solutions, and battery storage round out the portfolio. The company plans to hire 400–500 people to handle this expansion, with the help of contract workers. Over the course of the next year or so, INR 3,000 crore would be needed for working capital.
Recent Projects and Strategic Shifts
In the last 14 months, Apollo Green Energy has pivoted significantly towards renewables, securing three notable solar contracts from NHPC totalling INR 3,500 crore. These include a variety of projects like a 40 MW fixed-tilt solar setup in Odisha, a pioneering 50 MW floating solar project in Kerala, and a 200 MW solar project in Gujarat using tracker technology. On the side, Apollo Green is lighting up Bihar with 1,50,000 smart solar street lights and tackling emissions with a flue gas desulfurization project worth INR 700 crore.
Financial Performance
Financially, Apollo Green Energy has seen its revenues jump from INR 324.83 crore in FY22 to INR 1,174.77 crore in FY24, with projections to hit INR 1,100 crore by FY25. Gupta sees the IPO as a way to fuel this growth and delve into new tech in renewables.
With India aiming for 500 GW of renewable energy by 2030, Apollo Green Energy is aligning its goals to not only meet but contribute to this target. They plan to forge tech partnerships, expand across eight states, and start manufacturing solar modules by FY27.
“Our strategy is clear; we want to offer value to our investors,” Gupta remarked, promising growth and returns.
The company’s financial health is reflected in its BBB/Stable long-term and A3+ short-term ratings, as confirmed by CRISIL in April 2024.
Conclusion
Apollo Green Energy is well-positioned to make a big impact on India’s renewable energy landscape with its planned IPO and strategic emphasis on green energy. The company intends to fulfil its ambitious INR 10,000 crore portfolio target and support the nation’s clean energy goals by giving priority to solar power, green hydrogen, and battery storage projects. An important milestone in Apollo Green Energy’s path to becoming a leader in the renewable energy industry is the IPO, which is scheduled for Q4 of CY25.
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