Apollo Group’s engineering arm, Apollo Green Energy, plans to invest Rs 15 billion in capacity expansion and renewable energy projects, with most of the funding coming from an initial public offering (IPO) next year. The company aims to nearly triple its portfolio from Rs 35 billion to Rs 100 billion, tapping into India’s ambitious renewable energy goals.

India’s renewable energy capacity accounts for 46.3% of the country’s total installed electricity capacity, with solar power leading the charge. Apollo Green Energy, which entered the renewable sector less than a year ago, has already secured orders worth Rs 28.3 billion, primarily from solar projects. The company is confident that, within one to one-and-a-half years, it will reach its Rs 100 billion order book target, leveraging India’s target of 500 GW of renewable energy capacity by 2030.

The government’s push for renewable energy is expected to generate projects worth at least Rs 1.25 trillion, offering significant opportunities for companies like Apollo Green Energy. The company has been actively bidding for tenders from central and state governments, as well as public sector enterprises, with a focus on projects worth Rs 10 billion or more. Apollo Green Energy submits at least two bids every month, capitalising on the strong momentum in the sector.

The company’s revenue grew from Rs 3.25 billion in 2021-22 to Rs 11.75 billion in 2023-24, reflecting its rapid expansion. Apollo Green Energy plans to raise funds through an IPO by Diwali next year, with the size of the offering to be determined by March. The funds will be used to reduce debt, fund mergers and acquisitions, and support working capital needs.

Currently, Apollo Green Energy holds Rs 2.5 billion in debt, and the IPO proceeds will be used to pay off this debt, invest in manufacturing facilities, and expand its portfolio. The company operates in eight states, managing 400 MW of solar installations, and is exploring opportunities in wind, hybrid, green hydrogen, and battery storage solutions.

Apollo Green Energy’s future growth is supported by the strong push from the government and public sector enterprises to implement solar power solutions, positioning the company to benefit from India’s renewable energy transformation.

(Live Mint)