The sun is shining bright on solar energy stocks in India.
The green energy sector is booming as India aims to achieve 500GW capacity of renewable energy by 2030. Investing in this sector is a promising opportunity for both seasoned investors and beginners. There are plenty of solar energy stocks to bring into your portfolio.
On 7th April 2021, The Union Cabinet approved the Production Linked Incentive (PLI) Scheme to boost the manufacturing of solar PV modules. The total of INR. 24,000 cr dedicated towards the sector aims to produce 39,600 MW capacity. India is set to create solar cities across the nation. The 1st solar city, ‘Sachi’, has already been launched in Madhya Pradesh in 2023. As the country marches ahead in this sector, many big solar panel manufacturers are raising INR. 5,800 cr this year. These funds will be used to establish 500 GW capacity by 2030. Along with Solar Panels, the manufacturers will also produce cells, wafers, and ingots under the PLI scheme.
We've handpicked a few solar energy companies that are available to invest. For recent share prices, get in touch with VNN Wealth. Read along to know more...
Apollo Green Energy Limited (AGEL) is aiming to advance in the sustainable energy sector. Established in 1994, AGEL is owned by Apollo Group and has become a rising player in the green energy domain.
Apollo Green Energy Limited provides end-to-end solutions for green energy projects. Its specialty ranges across solar power, wind energy, biomass, and optimizing energy storage solutions. AGEL’s mission is to reduce carbon footprint by accompanying industries and communities to shift towards green energy resources through modern technologies.
The company has shown significant financial growth from 280 cr income in FY 2021 to 688 cr in 2023. AGEL is expected to generate 780 cr in review in FY 2024-25, 1380 cr in FY 20225-26, and cross over 2000 cr in 2026-27. The company is working on a wide range of projects and has a diverse portfolio. The projects under execution are smart solar street light installation, solar panel installation, thermal power project, and rural water supply project to name a few. The total value of the projects under execution is about 1735 cr. With promising growth, Apollo Green Energy Limited has become one of the leading companies in the renewable energy sector.
Update: Vikram Solar has filed draft papers for the IPO with SEBI. The IPO will be a combination of a fresh issue of up to INR. 1,500 crore and an offer-for-sale (OFS) of up to 17.45 million equity shares.
Vikram Solar is another big player in the green energy sector. With 3.5GW capacity, it is among the largest exporters of solar PV modules. Additionally, the company provides engineering, procurement, and construction (EPC) services, as well as operations and maintenance. Vikram Solar’s 70% of the revenue comes from PV modules and about 20% revenue comes from EPC. In the previous year, the company also received approval from the government to set up 2.4GW of additional capacity under the PLI scheme.
Currently, Vikram Solar is available to purchase in the unlisted market. The company has filed a draft with SEBI for an initial public offering (IPO). Vikram Solar IPO will offer a fresh issue of up to INR. 1,500 crores and an offer for sale of up to 5,000,000 equity shares.
Update: Waree Energies got listed on the stock market on Oct 28, 2024, at Rs. 2550, with a 70% premium over the issue price of 1503/share.
Waree Energies is playing a crucial role in expanding India’s renewable energy sector. The largest manufacturer of solar modules in India, Waree has rapidly boosted its capacity to 12GW in recent years. The company occupies about 50% of the market share in solar PV module export, surpassing Adani and Vikram Solar.
In December 2023, Waree Energies filed a draft with SEBI to raise INR. 3,000 crore through an initial public offering. The funds will be used to further expand the capacity from 12 GW to 38 GW over the next five years. Buying unlisted shares of Waree Energies can guarantee allocation and significant growth over the years. (Please note that the unlisted shares are subject to availability.)
Read more about Waree Energies and other unlisted shares here.
Update: Premier Energies got listed on the stock market on Sept 3rd, 2024 with 120% premium over the issue price of 450/share.
Premier Energies is one of the largest integrated solar cells and solar module manufacturers in India. With 29 years spent in the solar sector, the company now has an installed capacity of 2GW for integrated solar cells and 3.36 GW for solar module manufacturing. Premier Energies has filed the draft with SEBI to raise INR. 1,500 crore via initial public offering (IPO).
The company will utilize INR. 1,168.74 to establish a 4 GW solar PV TOPCon cell and 4 GW solar PV TOPCon module manufacturing facility in Hyderabad. The remaining funds will go towards general corporate purposes. The company is also aiming to execute EPC projects, independent power production, and O&M services.
Final Thoughts
India’s solar energy sector is rapidly expanding with the PLI scheme in place. The government is taking the initiative to encourage growth in the capacity of renewable energy production. This is the right time to enter the sector by investing in solar energy stocks. It has the potential to deliver a significant return on your investment. Buying unlisted shares of Waree Energies or Vikram Solar will ensure allocation before the IPO. However, it is subject to availability. Get in touch with experts at VNN Wealth for the unlisted shares you wish to buy. Explore all unlisted shares here.
