It’s been a busy year for IPOs in the clean energy sector in India. Two leading renewable energy companies—Premier Energies and Waaree Energies—raised about $850 million in their initial public offerings this year.

Electric vehicle manufacturers Ather Energy and Ola Electric raised $337 million and $734 million earlier this year.

Several other clean energy companies are in the queue, having filed their draft IPO papers with the regulators.

Independent power producer ACME Solar’s IPO is the next big public issue to hit the market. It seeks to raise $345 million in a three-day subscription window starting November 6, 2024. Another IPO expected to make a splash is from public sector company NTPC Green Energy’s $1.18 billion equity raise. The company has received regulator approval for the IPO but has not disclosed when it will make it to the bourses.

Reports say two other public sector companies, SJVN Green and NLC India’s green energy arm, are also considering raising money from the market in 2025.

This year, about half a dozen big and small renewable energy players offering services, including renewable energy engineering, procurement and construction, and solar module manufacturing, have filed their draft red herring prospectuses (DRHP) with the market regulators to raise as little as $6 million to over a billion dollars.

In February, solar module manufacturer Alpex Solar’s $8.9 million IPO was oversubscribed 303 times. Other companies that filed DRHPs include Vikram Solar, Solar91 Cleantech, Solarium Green, and Solarworld Energy.

A few clean energy companies took the QIP (qualified institutional placement) route to raise money. Adani Energy Solutions raised equity capital twice this year through QIPs for a total of $1.5 billion. Its second QIP in October received bids 4.2 times the deal size. Earlier in the year, JSW Energy raised $600 million in a QIP.

Going by the response to the clean energy companies’ IPOs this year from both institutional and retail investors, despite the heavy premiums the shares carried, the ones in the queue are also expected to do equally well. Stocks of green energy companies have been performing well on India’s bourses. Waaree’s shares were listed at a nearly 70% premium when it opened on October 28 and have sustained their price rally since.

India has set a target of installing 500 GW of non-fossil fuel-based renewable energy capacity by 2030. By August this year, India’s renewable energy capacity crossed 203 GW, but it needs to add 50 GW every year to reach the goal.