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Apollo Green Energy, a subsidiary of the Apollo Group, is set to invest ₹1,500 crore in expanding its renewable energy capacity, primarily funded by an IPO slated for next year. The company aims to significantly increase its portfolio, aligning with India's ambitious renewable energy targets.
Apollo Green Energy Ltd., an engineering and construction arm of Apollo Group, has unveiled plans to invest ₹1,500 crore towards capacity expansion and renewable energy projects within the government and public sectors. The company intends to raise capital for this venture through an initial public offering (IPO) expected next year.
Having ventured into the renewable energy sector less than a year ago, Apollo Green Energy has already secured orders worth ₹2,830 crore, predominantly focused on solar projects. CEO Sanjay Gupta revealed in an interview with Mint that the company is targeting an expansion of its total portfolio from the current ₹3,500 crore to ₹10,000 crore by the following year.
Gupta expressed confidence in the company's rapid growth, stating, "Last year, when we started bidding, within one year, with no experience of solar being done in the past, we could achieve ₹2,500 crore. That’s fast. So we’re very confident that in one year or maybe one-and-a-half years, we can quickly touch ₹10,000 crore."
Apollo Green Energy aims to leverage India's goal of achieving 500 GW of renewable energy capacity by 2030. The CEO noted that this government initiative has the potential to create projects worth at least ₹1.25 trillion.
As of October, India's renewable energy-based electricity generation capacity stood at 201.45 GW, representing 46.3% of the nation's total installed capacity. Solar power leads the way with 90.76 GW.
Apollo Green Energy has been actively participating in tenders issued by central and state governments, as well as public sector companies, to meet its ₹10,000-crore order book target. The company focuses on projects with a minimum value of ₹1,000 crore and submits at least two bids per month, Gupta confirmed.
"Not just the government, but all the PSUs (public sector undertakings) are pushing very hard to implement solar panels," he added. "So we are very confident about the opportunities which are there in the environment."
Apollo Green's revenue has experienced significant growth, increasing from ₹325 crore in 2021-22 to ₹1,175 crore in 2023-24.
To finance its ₹1,500 crore capital expenditure plan, Apollo Green intends to list on the stock exchanges by Diwali of the coming year. The size of the IPO will be determined by March. The company plans to use the proceeds to repay debt, fund mergers and acquisitions, and provide a buffer for working capital needs. Currently, the company carries a debt of ₹250 crore.
"We will try to square off all of our past dues and the interest and cater to my working capital requirement," Gupta stated. "This requirement is typically in the form of working capital, in the form of any merger and acquisition we are planning. We want to add up in terms of, say, manufacturing facilities. We want to develop within our system."
Apollo Green operates in eight states and manages 400 MW of solar installations, along with other projects. It also operates flue gas desulfurization (FGD) systems to reduce sulfur dioxide emissions in power generation. The company has undertaken projects in Africa, Southeast Asia, and West Asia but has shifted its focus to India in recent years.
Looking ahead, Apollo Green plans to expand into wind, hybrid, green hydrogen, and battery storage solutions.
