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Apollo Group’s engineering and construction arm plans to spend ₹1,500 crore to expand its capacity and undertake government and public-sector renewable energy projects, sourcing most of its capital expenditure requirement from an initial public offering next year.
Apollo Green Energy Ltd, which ventured into the renewable sector less than a year ago, has secured orders worth nearly ₹2,830 crore, a majority of which are solar projects, chief executive Sanjay Gupta said in an interview with Mint.
The company aims to expand its total portfolio from ₹3,500 crore now to ₹10,000 crore next year, he said.
“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,” Gupta said. “So we’re very confident that in one year or maybe one-and-a-half years, we can quickly touch ₹10,000 crore.”
To do that, Apollo Green Energy plans to capitalize on India’s aim to achieve 500 GW of renewable energy capacity by 2030. The government’s plan can potentially generate projects worth at least ₹1.25 trillion, he said.
Also read | India’s renewable energy boom is stunted by regulatory ambiguity
As of October, India’s renewable energy-based electricity generation capacity was at 201.45 GW, accounting for 46.3% of the country’s total installed capacity, per government data. Solar power led the way with 90.76 GW.
Apollo Green Energy has been actively bidding in tenders issued by Central and state governments and public sector companies to meet its ₹10,000-crore order book target.
The company prioritises projects worth at least ₹1,000 crore, and submits a minimum two bids a month, said Gupta.
“Not just the government, but all the PSUs (public sector undertakings) are pushing very hard to implement solar panels,” he said. “So we are very confident about the opportunities which are there in the environment.”
Apollo Green’s revenue grew from ₹325 crore in 2021-22 to ₹1,175 crore in 2023-24.
Also read | Power Grid may benefit from higher investments in renewable energy
IPO agenda
To procure funds for its ₹1,500 crore capital expenditure plan, Apollo Green planning to get listed on the bourses by Diwali next year. The IPO size will be decided by March.
The company will use the proceeds to pay off debt, fund mergers and acquisitions, and as a cushion for its working capital requirements.
The company currently has ₹250 crore in debt.
“We will try to square off all of our past dues and the interest and cater to my working capital requirement,” Gupta said. “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.”
Also read | India’s renewable energy target may prove elusive without course correction
Apollo Green operates in eight states and manages 400 MW of solar installations, among other projects. It also operates flue gas desulfurization (FGD) systems to reduce sulfur dioxide emissions in power generation.
The company has also handled projects in Africa, Southeast Asia and West Asia. In the last two years, mainly after covid, the company turned to an India-focused strategy.
The company also planning to expand into wind, hybrid, green hydrogen, and battery storage solutions.
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