Onix Renewable, a Gujarat based renewable energy company, has announced its plans to go public with the board approving the IPO in the range of INR 1,000 to 1,200 crore. The company will file its Draft Red Herring Prospectus (DRHP) with SEBI in few weeks. Onix Renewble IPO will be a fresh issue of equity shares and/or an offer for sale and will be structured and timed as per the discretion of the board.
Onix Renewable operates in multiple verticals in the renewable energy space including solar EPC (Engineering, Procurement and Construction), Independent Power Production (IPP), Transmission and Distribution (T&D), and Operations and Maintenance (O&M). It has a strong presence in India’s green energy landscape with 2.5 GW solar IPP capacity and order book of INR 14,000 crore. The company has executed over 500 MW of renewable energy projects and is expanding its capabilities in both project execution and manufacturing.
The company’s growth is visible in its solar manufacturing strategy. Onix has a 100 MW solar module facility and is scaling it up to 2,400 MW by 2024. It is also setting up a 1,200 MW solar cell manufacturing unit to strengthen its backward integration. This is in line with India’s larger goal of reducing import dependence in renewable energy components and promoting indigenous capacity building.
Financially, Onix Renewable has seen exceptional growth in the last 3 years. Revenue has grown from INR 99.86 crore in FY22 to INR 325.21 crore in FY24, a growth of over 70%. Net profit has grown from INR 2.25 crore to INR 34.61 crore during the same period, a significant improvement in net margin from 2.25% to 10.64%. EBITDA margins have expanded from 3.21% to 15.6% indicating improved operating leverage and efficiency. In FY25 the company expects to report revenue of INR 1,200-1,300 crore and net profit of INR 100-120 crore, indicating sustained growth.Onix Renewable has already seen good interest in the unlisted market. It recently raised INR 487 crore in pre-IPO round at a valuation of INR 6,250 crore. The round had investors like Ashish Kacholia, AL Maha Investments, EBISU Global, Piyush Savalia, Arix Capital and Six Sigma Investments. Now the company is looking to list at a valuation of INR 8,000-10,000 crore.
Beyond financials, Onix has been making strategic moves to expand globally with projects in USA, Vietnam, Thailand and Africa. It is also foraying into emerging clean energy segments like green hydrogen and energy storage systems. On domestic front, the company has signed MoUs worth INR 19,250 crore with Government of Gujarat and INR 400 crore with Government of Uttar Pradesh for solar and hybrid energy projects. Under PM KUSUM scheme, Onix has secured 187.4 MW of projects across 60 locations in Gujarat, the largest recipient under this initiative.
In unlisted market, Onix shares are currently trading at INR 14,400 per share, with a pre-IPO market cap of INR 2,405 crore. With only 16.7 lakh shares outstanding and promoter holding of 100%, the float is expected to open up post listing, giving more liquidity to investors.
Compared to listed peers, Onix’s financials are competitive. While companies like Adani Green Energy and JSW Energy have larger market caps, Onix has shown higher revenue growth of 71% CAGR over 3 years with margins comparable to industry leaders. The company’s combination of manufacturing, project development and operational execution makes it a complete energy solutions provider.
As Onix Renewables files its DRHP and launches the IPO in next few months, investors will be keenly watching the finer details of the offer structure, deployment of funds, anchor investor participation and future capacity expansion plans. Onix Renewable IPO will be one of the biggest renewable energy IPO in India in recent times, reflecting not just the company’s size and ambition but also the market appetite for clean energy investments. With a good track record, deep sectoral expertise and a clear roadmap for growth, Onix Renewable is all set to become a big player in India’s energy transition story.
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