Renewable energy major SAEL Industries has filed DRHP with the Securities and Exchange Board of India (SEBI) for an INR 4,575 crore IPO, one of the largest equity issues proposed in India’s green energy space. SAEL Industries IPO comprises a fresh issue of INR 3,750 crore and an offer for sale (OFS) of INR 825 crore by existing investor Norfund, the Norwegian government’s climate investment arm.
SAEL Industries IPO is being managed by ICICI Securities, Kotak Mahindra Capital, JM Financial, and Ambit Private, with KFin Technologies as registrar.
SAEL Industries IPO: Business Overview
Founded and promoted by Jasbir Singh, Sukhbir Singh, and Laxit Awla, SAEL Industries has evolved into one of India’s largest renewable energy independent power producers (IPPs). According to CRISIL, it ranks among the top five by contracted and awarded capacity as of September 2025.
SAEL operates across solar, agri-waste-to-energy (AgWTE), and module manufacturing, supported by a vertically integrated EPC and O&M structure. This integrated model, the company says, allows it to manage costs, maintain execution speed, and control quality across its supply chain.
⚡ National Footprint: 5.76 GW Contracted
As of 30 September 2025, SAEL’s total contracted and awarded capacity stood at 5,765.7 MW (8,464.4 MWp), spread across 10 states and one union territory. The company’s capacity mix highlights its geographic and operational reach:
| State | Capacity (MW) | Share of Total |
|---|---|---|
| Gujarat | 1,880.0 | 32.6% |
| Andhra Pradesh | 1,750.0 | 30.4% |
| Karnataka | 905.0 | 15.7% |
| Punjab | 520.4 | 9.0% |
| Rajasthan | 289.4 | 5.0% |
| Others (6 states incl. Mizoram, Assam, Delhi) | 421.0 | 7.3% |
| Total | 5,765.7 | 100% |
The bulk of its portfolio lies in Gujarat, Andhra Pradesh, and Karnataka, which together account for over 78% of its contracted capacity.
💡 Off-Taker Strength: 82% with AA Rating and Above
SAEL’s offtake portfolio reflects high credit quality and payment discipline. The company sells power primarily to central government entities, DISCOMs, and industrial customers, with over 81.5% of capacity contracted with AA-rated or higher off-takers.
| Major Off-takers (FY25) | % of Revenue |
|---|---|
| Punjab State Power Corporation Ltd (PSPCL) | 56.8% |
| Uttar Pradesh Power Corporation Ltd (UPPCL) | 17.5% |
| Haryana Power Purchase Centre (HPPC) | 10.7% |
| Rajasthan Urja Vitran Nigam Ltd (RUVNL)* | 5.5% |
| Solar Energy Corporation of India (SECI) | 2.5% |
| Others (MSEDCL, Mizoram PED, etc.) | Balance |
Note: Rajasthan AgWTE PPAs are routed through RUVNL on behalf of JDVVNL, JVVNL, and AVVNL.
The company’s receivable cycle stood at 34.5 days, among the lowest in the sector, compared to peers that typically range between 90–120 days.
Credit agencies including ICRA, CRISIL, and CAREEdge rate key offtakers such as SECI, NTPC, NHPC, and SJVN in the AAA–AA+ range, while lower-rated DISCOMs such as PSPCL (BBB–) and UPPCL (A+) reflect the diversified counterparty mix.
☀️ Solar and Agri-Waste Power: Dual Engines of Growth
SAEL’s renewable business is powered by two core verticals:
1. Solar Power IPP
- Installed capacity: 5,600.8 MW (8,299.5 MWp)
- Projects: 54 operational/under construction
- Average tariff: INR 2.76/kWh
- PPA tenure: ~25 years
- Average CUF: 23.8%; availability: 99.7%
Tariff distribution shows 83% of capacity between INR 2.48–3.00/kWh, ensuring cost competitiveness in utility-scale solar markets.
2. Agri-Waste-to-Energy (AgWTE)
- Capacity: 164.9 MW operational + under construction
- Average tariff: INR 7.97/kWh
- PPA life: ~20 years
- Average PLF: ~91%
- Tariff escalation: 4.4–5% per annum across projects
SAEL claims to be India’s largest AgWTE operator, converting agricultural residue into power and helping curb stubble burning. The company’s 10 operational plants across Punjab, Haryana, and Rajasthan generate 11 times higher revenue per MW than solar projects.
🏭 Manufacturing Edge and EPC Integration
SAEL’s solar module manufacturing capacity stands at 3.6 GW, producing bifacial TopCon modules with 22.95% efficiency, and expansion is underway for an additional 5 GW cell and 5 GW module facility in Greater Noida.
The company’s in-house EPC arm, with over 1,400 technical staff, has demonstrated rapid execution—completing 1 GW at Khavda in 16 months. Advanced technologies such as SCADA-based monitoring, robotic cleaning, and tracker systems from global vendors like Nextracker bolster operational efficiency.
📈 Financials: Revenue Rising, Losses Persisting
While SAEL has seen strong top-line growth, its bottom line remains in the red due to high interest and depreciation costs.
| Metrics | FY2023 | FY2024 | FY2025 | Q1 FY2026 |
|---|---|---|---|---|
| Revenue from Operations | 388.9 | 558.5 | 664.8 | 260.8 |
| EBITDA | 136.5 | 197.9 | 358.9 | 150.1 |
| EBITDA Margin | 34 | 34 | 49 | 54 |
| Loss After Tax | (71.1) | (267.1) | (280.9) | (58.3) |
| EPS (INR) | 0.37 | (2.23) | (2.31) | (0.45) |
Despite widening losses, the company’s EBITDA margins have improved sharply, and revenue nearly doubled between FY23 and FY25.
The IPO proceeds will primarily repay borrowings in subsidiaries SAEL Solar P4 and P5, totalling INR 2,812.5 crore, reducing consolidated leverage.
SAEL Industries IPO: Shareholding & Investors
Pre-issue, SAEL is promoter-controlled, with Jasbir Singh and Sukhbir Singh jointly holding nearly 55%. Other significant shareholders include family members and group entities such as Sukhbir Logistics and Gobind Dhaam Renewable Energy.
Strategic investors include:
- Norfund – 19.71% (post-conversion)
- U.S. International Development Finance Corporation (DFC) – 5.08%
Together, Norfund and DFC have infused over USD 145 million (~INR 1,285 crore) in equity, supplementing the company’s green bond issuance of USD 305 million (~INR 2,703 crore) in FY25.
Verdict: A Leverage-Heavy Bet on Green Transition
SAEL Industries IPO comes at a time when India’s renewable capacity is accelerating toward its 500 GW target. The integrated model is impressive, but the leverage level—nearly eight times equity—is a key risk investors will watch.
SAEL Industries DRHP paints a picture of rapid scale, strong execution, and credible offtakers, but thin profitability and high leverage. The IPO is poised to test whether India’s green markets can balance growth enthusiasm with fiscal discipline.
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