A positive macroeconomic environment, rising market liquidity and optimistic investor confidence have been some of the key factors behind the record number of initial public offering (IPO) listings in India in recent years. According to the Macro-Economic Framework Statement 2024-25, the National Statistics Office’s first advance estimates project the country’s real GDP growth at 6.4 per cent and nominal GDP growth at 9.7 per cent. Looking ahead, the Union Budget 2025-26 projects the nominal GDP growth at 10.1 per cent over these estimates. In addition, according to the Economic Survey, over the past five years (2020-24), retail investors have invested a total of Rs 4.4 trillion in the National Stock Exchange’s cash market segment. This growing retail base has been a critical source of market liquidity.
These developments have led to an IPO boom. India leads globally with a 23 per cent share in total listings and topped the charts in capital raised via IPOs, raising approximately $19.5 billion, according to the Indus Valley Report 2025 by Blume Ventures.
In line with these trends, the renewable energy sector has also witnessed an IPO boom, with several companies going public in the past few years. For most companies, the goal was to tap the public markets to raise capital for expansion, reduce debt and initiate vertical backward integration. While initial listings saw good subscription rates, the post-IPO performance has been mixed. This raises the question of whether investor enthusiasm is driven by strong company fundamentals, rising market liquidity or largely by speculation.
This article analyses the post-IPO performance of select renewable energy companies that recently went public…
Waaree Energies
Before Waaree Energies went public, the company’s price-to-earnings (P/E) ratio was 26, which increased to 33 post IPO. Briefly put, the P/E ratio measures how much investors are willing to invest for each rupee of a company’s earnings. Hence, a high P/E ratio could signal strong growth expectations, while a low P/E ratio may signal weak future prospects.
During the listing, Waaree Energies received a record response with an overall subscription of 76.34 times with a Rs 43.21 billion issue, setting a new benchmark for retail participation in Indian capital markets. Post IPO, Waaree’s shares received a 66.33 per cent premium and have remained relatively stable, moving from Rs 2,336.80 on the listing date to Rs 2,228.4 as of April 16, 2025. Waaree Energies has demonstrated strong financials that have supported its IPO success, with a 114.63 per cent increase in its revenue from operations in FY2025 compared to the third quarter (Q3) of FY2024. The earnings before interest, taxes, depreciation and amortisation (EBITDA) witnessed a 256.97 per cent rise, while the profit after tax (PAT) increased by 259.98 per cent in the same period. This was coupled with the expansion of manufacturing capacity, such as the inauguration of a 5.4 GW solar cell facility in Chikhli, Gujarat, and plans for a 6 GW integrated unit in Odisha.
Premier Energies
Premier Energies is another company that has seen a successful post-IPO stage. The P/E ratio is at 51.85 as of April 16, 2025, and its stock trading is at Rs 940.55 (as of April 16, 2025), up from Rs 839.65 on September 3, 2024 (when the company was listed. The IPO process was held from August 27-29, 2024, and raised Rs 28.30 billion. The draft red herring prospectus, filed by the company with the Securities and Exchange Board of India (SEBI), stated that the move was to fund its subsidiary, Premier Energies Global Environment, and other general corporate purposes. Of this, Rs 34 billion was allocated for a vertically integrated manufacturing unit, which will be financed through Rs 12 billion from the IPO and Rs 22 billion in debt. In Q3 of FY2025, Premier Energies reported a 144.76 per cent increase in income compared to Q3 of FY2024, a 337.76 per cent increase in EBITDA and a 490.58 per cent increase in PAT during the same period. Given its strong financial performance and a large order book, the high P/E ratio assigned by investors appears justified.
NTPC Green Energy
NTPC Green Energy Limited (NGEL), a wholly owned subsidiary of NTPC Limited, launched its IPO from November 19-22, 2024. This comprised a fresh issue of Rs 100 billion. The IPO proceeds were primarily allocated to NGEL’s subsidiary NTPC Renewable Energy Limited, with over Rs 75 billion marked for repaying loans. The post-issue P/E ratio is 262.78, which is among the highest in the renewable energy space.
ACME Solar
ACME Solar Holdings Limited made its debut in the public market on November 13, 2024, being valued at Rs 30 billion. This comprised a fresh issue of Rs 23.95 billion and an offer for sale of Rs 5.05 billion by ACME Cleantech Solutions. The company raised over Rs 17.95 billion in IPO proceeds from the fresh issuance, which were announced to be directed towards investment in subsidiaries for repaying loans. Based on its filing on the BSE, the company has already repaid around Rs 20.69 billion in debt, as of April 2025. In another filing on the BSE, CRISIL highlighted that this should enhance ACME’s financial position.
However, financial performance has been under pressure since the IPO. Its revenue has seen a dip from Rs 47.17 billion in Q2 of FY2025 (pre-IPO) to Rs 32.74 billion in Q3 of FY2025 (the quarter in which the IPO took place). The net profit also declined from Rs 4.56 billion to Rs 149.9 million during this period.
Gensol Engineering
Gensol Engineering Limited has faced significant financial problems and market correction over the past year due to delays in servicing term loans, resulting in lower credit ratings and the scrutiny from the regulators over corporate governance issues. On March 3 and 4, 2025, both CARE Ratings Limited and ICRA Limited downgraded Gensol’s fund-based and non-fund-based credit facilities to a “D” rating. Between April 16, 2024 and April 16, 2025, the company’s share price fell dramatically from Rs 902.35 to Rs 123.65, over an 86.3 per cent decline.
Further, the company has come under intense scrutiny following an interim order issued by SEBI, which flagged multiple instances of corporate governance lapses by the promoters, including misuse of loans disbursed to the company. SEBI could not account for Rs 2.62 billion out of the total Rs 9.78 billion disbursed to the company for buying electric vehicles.
Another negative factor for Gensol is its low P/E ratio, which stands at just 3.47. It is important to keep in mind that while a low P/E ratio can sometimes signal undervaluation, this case may reflect the market’s reaction to the company’s debt obligations.
The path ahead
Overall, while a positive macroeconomic outlook, market liquidity, investor enthusiasm and expansion plans have fuelled many IPOs in India’s renewable energy sector, only companies with strong balance sheets, robust order books and consistent execution have sustained momentum post IPO listing.
A look at global valuations to place India’s renewable sector in context – as of April 16, 2025, the average P/E ratio for the Indian renewable energy industry stood at 18.2, compared to 16 in the US and 17.7 in China, suggesting that Indian companies likely enjoy a higher valuation.
With shifting US trade policies and the blanket application of tariffs under the Trump administration, it is essential to assess the potential impact on the order books of Indian renewable energy manufacturers. For Indian firms such as Waaree Energies and Premier Energies, this development could directly affect revenue streams. In FY2024, Waaree derived nearly 58 per cent of its revenue from exports, primarily to the US, while Premier Energies also reported significant export activity.
Meanwhile, developers continue to face challenges related to land acquisition delays, with the requirement for large tracts of land remaining a key reason for higher debt. As a result, a substantial portion of the funds raised often ends up being used for servicing loans rather than on company expansion. This trend impacts investor interest in developer/engineering, procurement and construction company IPOs.
Overall, India’s renewable energy IPO boom reflects strong investor interest, but post-listing performance reveals that long-term sustainability depends on underlying fundamentals, not just favourable conditions. As the sector matures, long-term resilience will depend on technological innovation, strong fundamentals and the ability to adapt to a dynamic geopolitical scenario.
(The stock price and P/E ratio numbers were accessed on April 16, 2025. The stock price numbers have been taken from the BSE portal, while the P/E ratio numbers have been accessed from BSE, Screener.in, Value Research and Simplywall.st)
By Mohammed Ali Siddiqi
