The Indian government has directed public sector energy companies (PSUs) with green energy arms to list these businesses on the stock market. This move comes as NTPC Green Energy Ltd has already filed for a ₹10,000 crore initial public offering (IPO) expected to launch in November, and companies like SJVN Green Energy Ltd and Solar Energy Corporation of India (SECI) are also planning to go public soon.
The Department of Investment and Public Asset Management (DIPAM) is identifying more companies that could follow this path. These listings are expected to bring in more value than one-time sales of government assets. Listing green energy businesses is seen as a way to raise funds, especially since it’s becoming harder to get money for traditional energy companies due to their environmental impact.
Solar, hydropower, and electric vehicle battery sectors are seen as growth areas. Investors are likely to favor these companies over traditional ones, as green energy is considered more valuable and faces fewer regulations.
SJVN Green Energy Ltd is already expanding its renewable energy capacity, aiming for 15GW by 2030, while NHPC, India’s largest hydro power company, is also considering listing its green energy arm in a few years once it scales up operations.
In the meantime, private green energy companies like ACME Solar and Waaree Energies Ltd are also preparing their IPOs, leading to competition for investor interest. Experts suggest that the government will need to time its IPO listings carefully to match market demand.
Overall, green energy is seen as a promising sector, with strong interest from both retail and institutional investors, especially those focused on ESG (environmental, social, and governance) investing. However, challenges remain, such as delays in solar and wind projects due to infrastructure and land acquisition issues. As the market evolves, projects with energy storage solutions are expected to gain more attention.
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