Onix Renewable plans Rs 1,000 cr IPO, targets Rs 10,000 cr valuation

Onix Renewable, a Gujarat-based renewable energy and solar module manufacturing company, is set to raise Rs 1,000 crore through an initial public offering (IPO) by July, targeting a valuation of Rs 10,000 crore, according to a senior company executive.

 

The company, which began as a transmission and distribution contractor in 2007, has expanded into solar module manufacturing and independent power production (IPP). It currently operates an EPC (engineering, procurement, and construction) portfolio exceeding 1,200 MW (megawatt) and 2,525 MW of IPP projects, mainly under the PM-Kusum scheme.

 

The IPO proceeds will be used to finance equity investments in IPP projects and provide working capital for its EPC business, Hardik Adhiya, chief operating officer (COO) of Onix Renewable, told Business Standard in an interaction. The company’s order book stands at Rs 14,000 crore, with a mix of solar, hybrid, and battery energy storage projects.

 

“Pre-IPO collection and preferential sales have already been issued. The last company valuation that we were into was Rs 6,250 crore, and the plan for the IPO is to get the valuation of Rs 10,000 crore with a top line of Rs 1,200 crore for this March. We are about to file the DRHP (draft red herring prospectus) maybe in the second or third week of March,” said Adhiya.

 

Promoters will dilute 10 per cent of their stake, bringing their post-listing holding to 62 per cent. Discussions with investment bankers are currently underway. “Currently, the promoter is holding around 72 per cent after the preferential dilution; in the IPO, we are about to dilute 10 per cent,” said Adhiya.

 

Onix Renewable began solar module production in 2020 with a 100 MW capacity, which is currently being expanded to 2,400 MW. It plans to start 1,200 MW of solar cell manufacturing, with the first phase being operational in May and the second phase by December. It is also eyeing green hydrogen production, with a Rs 30,000 crore project targeting 100,000 metric tonnes of output.

 

“There is no government policy as of now for the production, storage, and transportation of green hydrogen. There is only a policy of land allocation that has been declared by the Gujarat government," said Adhiya. "So, we have applied for 20,000 acres of land in the Kutch region near the port. Once the land allocation gets done and some generation policy comes out, we will be immediately starting.”

 

Onix Renewable currently operates only in India but has international expansion plans. “We have formed a subsidiary in Thailand, the Brazil subsidiary is in process. We have formed a company in the US as well, and we are in the final stage of discussion with some local partners. The main aim is to supply solar modules once we are ready with the expanded plan. Once we have the manufacturing capacity put in place, we will be starting exports of panels," said Adhiya.