AIL was incorporated on 25 August 1994. It is promoted by Mr. Raaja Kanwar. AIL has diversified business th
operations - it operates in three broad segments: (i) leather accessories and garments, (ii) EPC segment, and (iii) trading segment (wherein it is engaged in trading of multiple products including tyres, tubes, flaps, white goods, industrial machinery, etc.).Apollo International FZC is based in Sharjah and is engaged in trading of tyres, tubes, batteries and commodities.
AGEL The company, part of the Raaja Kanwar-promoter Apollo International Group, currently has an order book of ₹3,500 crore in projects spread across solar and hydro energy. It plans to expand into wind, hybrid, green hydrogen, and battery storage solutions.
The company, which plans to go public next year, has operations in eight states and is executing 400 MW of solar installations and other EPC projects. Funds raised from the IPO will be used to expand and acquire new projects. It said it was forming partnerships with technology providers and exploring options to produce its own solar modules.
Apollo Green Energy Limited (AGEL) is a renewable energy solutions provider that is planning to go public in 2025. Here are some details about the company's valuation:
Revenue
AGEL's revenue increased from ₹324.83 crore in FY22 to ₹1,174.77 crore in FY24.
Crisil rating
AGEL's long-term debt is rated 'BBB/Stable' and its short-term rating is A3+.
IPO
AGEL plans to use the funds raised from its IPO to expand and acquire new projects. The IPO size will be decided by March 2024.
AGEL is a company that focuses on large-scale solar, energy storage, and green hydrogen initiatives. It has projects in eight states, including:
• A 40 MW solar project in Odisha
• A 50 MW floating solar project in Kerala • A 200 MW solar tracker project in Gujarat • A 1.5 lakh smart solar streetlights project in Bihar
AGEL's goal is to align with India's target of achieving 500 GW of renewable energy capacity by 2030.
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Apollo Group’s engineering and construction arm plans to spend ₹1,500 crore to expand its capacity and undertake government and public-sector renewable energy projects, sourcing most of its capital expenditure requirement from an initial public offering next year. Apollo Green Energy Ltd, which ventured into the renewable sector less than a year ago, has secured orders worth nearly ₹2,830 crore, a majority of which are solar projects, chief executive Sanjay Gupta said in an interview with Mint.
The company aims to expand its total portfolio from ₹3,500 crore now to ₹10,000 crore next year, he said.
“Last year, when we started bidding, within one year, with no experience of solar being done in the past, we could achieve ₹2,500 crore. That’s fast,” Gupta said. “So we’re very confident that in one year or maybe one-and-a-half years, we can quickly touch ₹10,000 crore.”
To do that, Apollo Green Energy plans to capitalize on India’s aim to achieve 500 GW of renewable energy capacity by 2030. The government’s plan can potentially generate projects worth at least ₹1.25 trillion, he said.
As of October, India’s renewable energy-based electricity generation capacity was at 201.45 GW, accounting for 46.3% of the country’s total installed capacity, per government data. Solar power led the way with 90.76 GW.
Apollo Green Energy has been actively bidding in tenders issued by Central and state governments and public sector companies to meet its ₹10,000-crore order book target.
The company prioritises projects worth at least ₹1,000 crore, and submits a minimum two bids a month, said Gupta.
“Not just the government, but all the PSUs (public sector undertakings) are pushing very hard to implement solar panels,” he said. “So we are very confident about the opportunities which are there in the environment.”
Apollo Green’s revenue grew from ₹325 crore in 2021-22 to ₹1,175 crore in 2023-24.
IPO agenda
To procure funds for its ₹1,500 crore capital expenditure plan, Apollo Green planning to get listed on the bourses by Diwali next year. The IPO size will be decided by March.
The company will use the proceeds to pay off debt, fund mergers and acquisitions, and as a cushion for its working capital requirements.
"We are actively following market trends and collaborating with financial consultants to determine a fair valuation (for the initial public offering)," Gupta said. The company plans to finalise the IPO size within the next three to four months, he added.
Apollo Green Energy is also executing 400 MW of solar installations and other engineering, procurement and construction projects and is seeking to expand into building wind, green hydrogen and battery storage solutions, Gupta said.
The company has identified a site to set up a 500 MW solar module production facility in the Indian state of Madhya Pradesh to supply components to its projects, with plans to increase the capacity, the CEO said without elaborating.
Its long-term debt is rated 'BBB/Stable' by Crisil.
CRISIL RATING COMMENTS: APRIL 2024
The promoters have more than three decades of experience; their strong understanding of market dynamics and healthy relations with customers and suppliers should continue to support the business.
Revenue increased at a compound annual growth rate of about 36% for the three fiscals through 2024 and is expected at around Rs 1,150 crore in fiscal 2024. Diversified presence into trading, leather and EPC segments further insulates the group from downturn in any particular segment.
Focus on scaling up of business operations from the EPC segment and order book of about Rs 1,800 crore (as of March 2024, providing revenue visibility for the next 2.5-3.0 years) should help sustain the established market position of the group.
The financial risk profile is backed by comfortable capital structure, reflected in expected gearing of ~0.6 time as on March 31, 2024, indicating sufficient headroom to take on additional debt for business requirements.
Liquidity: Adequate: AGEL is expected to generate net cash accruals around Rs 70-90 crores, which would be sufficient to meet up with annual repayment obligations of ~Rs 40-70 crore over medium term. AGEL has access to fund based limits of Rs 142 crores , where average utilisation has been 48% for last 12 months through Jan’24
