India experienced a record-breaking year for initial public offerings (IPOs) in 2024, propelling seven entrepreneurs to billionaire status. Notably, many of these newly minted billionaires hail from the country’s burgeoning renewable energy sector. This surge in IPO activity underscores India’s growing economic strength and its commitment to sustainable energy solutions.
Chiranjeev Singh Saluja, the 51-year-old leader of Premier Energies, exemplifies this trend. Saluja’s journey began with his father, who initially supplied hand pumps to rural villages. Recognizing the lack of electricity in these areas, Saluja’s father founded Premier Solar in 1995. Today, rebranded as Premier Energies, the company stands as India’s second-largest integrated solar module and cell manufacturer, trailing only the Adani Group. Since its September IPO, investor confidence in the government’s solar energy initiatives has driven Premier Energies’ valuation to approximately $7 billion, a nearly threefold increase.
Saluja is among four renewable energy entrepreneurs who witnessed their wealth skyrocket following successful IPOs in 2024. This group includes Hitech C Doshi of Waaree Group, another solar module manufacturer; Bhavish Aggarwal of electric vehicle manufacturer Ola Electric Mobility Ltd.; and Manoj K Upadhyaya of solar energy generator Acme Solar Holdings Ltd.
India’s ambitious goal of adding 100 GW of solar capacity within the next four years fuels optimism for the sector. However, Saluja cautions that this rapid expansion could lead to industry consolidation, with only the most scalable companies surviving. The anticipated surge in solar cell and module manufacturing capacity over the next 18-24 months will likely intensify competition.
The overall IPO market in India mirrored the success of the renewable energy sector. A record 1.66 trillion rupees ($19.82 billion) was raised through IPOs in 2024, a significant jump from the 650 billion rupees raised the previous year. This surge was driven by a 27% increase in unique investors on the main bourse, reaching 109 million. Approximately 85 companies are aiming to list in 2025, with a combined target of 1.53 trillion rupees ($18 billion).
Despite this positive momentum, potential headwinds loom. A slowing economy, weak corporate profits, rupee volatility, sluggish consumer spending, and incoming US President Donald Trump’s tariff policies pose challenges for the market. Kunal Rambhia, fund manager at The Streets, a Mumbai-based hedge fund, anticipates a market correction triggered by global tensions and tariff threats. He predicts a potential slowdown in IPO activity in the latter half of 2025, particularly impacting startups and tech companies due to possible liquidity constraints.
However, others maintain a more optimistic outlook, citing robust domestic equity inflows. Himanshu Kohli, co-founder of Client Associates, a wealth management firm, emphasizes the reduced reliance on foreign investors. He highlights the significant capital deployed by private equity firms and family offices into pre-IPO companies, anticipating successful exits in 2025.
The anticipated IPO pipeline for 2025 is expected to feature prominent names across various sectors, including financial services, electronics manufacturing, power generation, and software. High-profile companies like online grocer Zepto, e-commerce giant Flipkart, and payment firms PayU and Pine Labs are expected to file for listings. Additionally, Reliance Industries Ltd., led by billionaire Mukesh Ambani, is anticipated to list its retail and telecom businesses separately.
While large companies will likely dominate headlines, smaller enterprises are also eager to participate in the IPO boom. Vishnu Agarwal, CEO of Stock Knocks, an investment research firm, notes a shift in mindset among founders, who now recognize the value of listing even smaller companies. This trend suggests a continued surge in IPO activity in the coming year. The Indian IPO market is poised for continued growth, driven by a combination of strong domestic investment, government support for renewable energy, and the entrepreneurial spirit of Indian businesses.
