A Blockbuster Year for IPOs in India: The Rise of Renewable Energy Entrepreneurs
India’s initial public offering (IPO) market has experienced a remarkable surge, marking 2024 as a blockbuster year for new listings. This unprecedented activity has not only transformed the financial landscape but has also propelled several entrepreneurs into the elite dollar billionaires’ club. Among these trailblazers are pioneers in the burgeoning renewable energy sector, a field that has gained significant momentum in recent years.
The Journey of Premier Energies
One of the standout figures in this transformative year is Chiranjeev Singh Saluja, the founder of Premier Energies. Saluja’s journey is deeply rooted in his family’s commitment to improving rural livelihoods. “My father was in the business of supplying hand pumps to rural villages,” he recounted in a recent interview. Recognizing the dire need for electricity in these areas, he established Premier Solar in 1995. Fast forward three decades, and the company, now known as Premier Energies, has emerged as India’s second-largest integrated solar module and solar cell manufacturer, trailing only the Adani Group.
The company made its stock market debut in September 2024, and the response from investors has been overwhelmingly positive. With the Indian government ramping up investments in solar energy, Premier Energies’ shares have surged nearly threefold, valuing the company at approximately $7 billion. This meteoric rise underscores the growing confidence in the renewable energy sector, which is poised for further expansion.
A New Wave of Billionaires
Saluja is not alone in his success; he is part of a cohort of entrepreneurs whose fortunes have skyrocketed due to their companies’ IPOs. Hitech C Doshi of the Waaree Group, Bhavish Aggarwal of Ola Electric Mobility, and Manoj K Upadhyaya of Acme Solar Holdings are among the other notable figures who have joined the ranks of billionaires. Their companies are at the forefront of India’s renewable energy revolution, which aims to add an ambitious 100 gigawatts (GW) of solar capacity in the next four years, according to a report by Frost & Sullivan.
However, Saluja warns that while the prospects for solar players appear bright, the industry may face challenges ahead. He anticipates a surge in new capacity for solar cell and module manufacturing over the next 18 to 24 months, which could lead to consolidation in the sector. “Only those who scale up will survive,” he cautioned, highlighting the competitive nature of the market.
The IPO Landscape in India
The IPO frenzy in India has been nothing short of extraordinary. In 2024, a record 1.66 trillion rupees (approximately $19.82 billion) was raised through IPOs, a significant increase from the 650 billion rupees raised the previous year. Looking ahead, around 85 companies are expected to list on the stock exchanges in 2025, collectively aiming to raise 1.53 trillion rupees (about $18 billion), as per data from Prime Database.
Despite this optimistic outlook, challenges loom on the horizon. Economic headwinds, including slowing growth, weak corporate profits, and volatile currency fluctuations, could impact the IPO market. Kunal Rambhia, a fund manager at The Streets, expressed concerns that rising global tensions and potential tariff policies from the incoming U.S. administration could trigger a market correction.
Domestic Investors Take the Lead
Interestingly, the Indian IPO market is increasingly relying on domestic investors. Himanshu Kohli, co-founder of Client Associates, noted that the market is no longer dependent on foreign capital. Domestic institutions and investors have amassed significant funds, positioning themselves to capitalize on upcoming IPOs. This shift is encouraging for companies looking to go public, as it suggests a robust appetite for equity investments within the country.
The pipeline for IPOs is expected to be dominated by financial services, electronic manufacturing, power generation, and software companies. High-profile names anticipated to file for listing include Zepto, Flipkart India Pvt, PayU, and Pine Labs. Additionally, billionaire Mukesh Ambani’s Reliance Industries Ltd is expected to carve out its retail and telecom businesses into separate listed entities, further energizing the market.
The Future of IPOs in India
Over the past three years, India’s IPO landscape has been characterized by a surge of micro, small, and medium-sized enterprises, with 90% of them raising less than $100 million. However, as the market matures, larger companies are expected to make their presence felt. Entrepreneurs across India are eager to seize the opportunities presented by the IPO boom, recognizing that ownership stakes in publicly listed companies can yield greater returns than private ventures.
Vishnu Agarwal, CEO of Stock Knocks, emphasized this shift in mindset among founders. “It’s better to own 75% of a $100 million company listed on the exchanges than 100% of a $10 million company,” he stated. This perspective is likely to fuel a wave of IPO activity in the coming year, as entrepreneurs seek growth and expansion.
Conclusion
The year 2024 has undoubtedly been a landmark period for IPOs in India, particularly for entrepreneurs in the renewable energy sector. As the country continues to invest in sustainable energy solutions, the potential for growth remains immense. While challenges lie ahead, the resilience and ambition of Indian entrepreneurs suggest that the IPO boom is far from over. With a new generation of billionaires emerging, the future of India’s financial landscape looks promising, driven by innovation and a commitment to sustainability.