SAEL Industries files IPO papers with Sebi to raise ₹4,575 crore

SAEL Industries Ltd, the Delhi-headquartered renewable energy firm, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) to raise ₹4,575 crore through an initial public offering (IPO).

According to the DRHP, the proposed IPO comprises a fresh issue of shares worth ₹3,750 crore, with a face value of ₹5 each, and an offer for sale (OFS) of shares worth ₹825 crore by its existing investor, Norfund.

The Laxit Awla-led clean energy firm may also undertake a pre-IPO placement of up to ₹750 crore. If such a placement occurs, the size of the fresh issue will be adjusted accordingly, SAEL said in its DRHP.

The IPO proceed from fresh equity is expected to strengthen the company’s balance sheet by reducing debt and funding its expansion into new renewable projects.

As per the DRHP, ₹2,812.50 crore of the fresh equities are proposed to be used for repayment and prepayment of borrowings, and investment in subsidiary projects to expand renewable energy capacity. The remaining capital will be used for general corporate purposes.

Founded in 2022 and headquartered in Firozpur, Punjab, SAEL Industries operates in the renewable energy space, providing solutions in biomass-based power generation, solar park development, and agri-waste management.

The company proposes to invest in its subsidiaries - SAEL Solar P5 and SAEL Solar P4 - for repayment of certain of their outstanding borrowings. As of September 30, 2025, the firm had total outstanding borrowings of ₹12,429 crore on a consolidated basis.

The company reported revenue from operations of ₹1,401.30 crore in FY24, while its annualised revenue for Q1 FY26 stood at ₹904.53 crore. It posted a loss of ₹4.84 crore in FY24, with total assets of ₹1,267 crore, compared with ₹677 crore (standalone) in FY25.

SAEL Industries ranks among the top five renewable energy independent power producers (IPPs) in India that are vertically integrated with in-house solar module manufacturing, based on operational capacity as of June 30, 2025, according to a CRISIL report.

As of September 30, 2025, the company’s total contracted and awarded renewable energy capacity stood at 5,765.7 MW (8,464.4 MWp), including 5,600.7 MW (8,299.5 MWp) of solar projects and 165 MW of agri waste-to-energy (AgWTE) projects spread across 11 Indian states and union territories.

To strengthen its solar energy operations and ensure better supply chain control, SAEL has implemented vertical integration, establishing 3,625 MW of tunnel oxide passivated contact (TopCon) solar module manufacturing capacity across facilities in Punjab and Rajasthan.

According to estimates by CRISIL Intelligence, India’s conventional power generation capacity is projected to expand by 32–35 GW between FY26 and FY30, supported by power demand that is expected to remain above the decadal average.

During the same period, CRISIL anticipates the addition of 6–7 GW of hydropower capacity and 30–40 GW of energy storage solutions, which will include approximately 10–12 GW of pumped hydro storage (PSP) and 23–24 GW of battery energy storage systems (BESS).

(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)