RPSG Group Eyes Renewable Energy IPO, Targets 10 GW Capacity

RPSG Group, led by Chairman Sanjiv Goenka, has unveiled ambitious plans for its renewable energy business, including a potential initial public offering (IPO) within the next 12 to 18 months. The conglomerate is setting its sights on a significant expansion in the green energy sector, with a target of achieving 10 gigawatts (GW) of renewable capacity over the next six years.

Renewable Energy Push

The group's commitment to renewable energy is evident in its plans to scale up solar module and cell manufacturing. RPSG aims to reach a manufacturing capacity of 3 GW within three years, with the first gigawatt of module capacity expected to be operational in just 45 days.

Massive Capital Expenditure

To fuel this growth, RPSG Group is committing to a substantial capital expenditure of ₹1 lakh crore over the next five years. The majority of this investment will be directed towards the energy sector, underscoring the group's focus on becoming a major player in the renewable energy market.

Financial Strategy

Sanjiv Goenka emphasized the group's prudent financial management, stating that the company maintains a debt-equity ratio of 1:1, with a maximum threshold of 1:1.5. This conservative approach aims to ensure financial stability as the company pursues its ambitious growth plans.

Renewable Energy Goals

RPSG Group has set a target for renewable sources to contribute 45-50% of its total power sales. This goal aligns with the global shift towards cleaner energy sources and positions the company as a significant player in India's renewable energy landscape.

Expansion and Diversification

Beyond renewable energy, RPSG Group is also exploring other opportunities in the power sector. The company is currently bidding for power privatization in Uttar Pradesh, indicating its interest in expanding its presence in the traditional power distribution segment as well.

Growth Projections and Capital Raising

The group has set ambitious internal targets for its energy business, aiming for at least 2.5 times growth in profits. To support these growth ambitions, RPSG plans to raise capital over the next 12-18 months, supplementing its current internal accruals.

IPO Plans

The announcement of a potential IPO for the renewable energy business within the next 12 to 18 months signals RPSG Group's confidence in its green energy strategy. This move could provide the company with additional capital to fund its expansion plans and offer investors an opportunity to participate in India's growing renewable energy sector.

As RPSG Group moves forward with its renewable energy initiatives, the market will be watching closely to see how these ambitious plans unfold and potentially reshape India's energy landscape.