Seven Billionaire Founders Rode India's IPO Boom in 2024

India experienced an incredible surge in initial public offerings (IPOs) throughout 2024, leading to the rise of seven entrepreneurs as dollar billionaires. Notably, many of these founders were pioneers in the rapidly expanding renewable energy sector within the country.

One of these successful entrepreneurs is Chiranjeev Singh Saluja, the founder of Premier Energies. In a recent interview, he shared his family's history in the business. "My father was in the business of supplying hand pumps to rural villages," the 51-year-old entrepreneur recounted. He noticed the limited access to electricity in those areas, prompting the establishment of Premier Solar in 1995.

Now, after three decades, the company has rebranded as Premier Energies and has grown to become India’s second-largest integrated manufacturer of solar modules and cells, following the Adani Group. Since its stock market launch in September, Premier Energies' shares have tripled in value, leading to a market valuation of approximately $7 billion.

Saluja is among four entrepreneurs whose fortunes soared after their companies went public last year, further showcasing the growth of the renewable energy market. Other notable figures include Hitech C Doshi from the Waaree Group, Bhavish Aggarwal of Ola Electric Mobility Ltd, and Manoj K Upadhyaya of Acme Solar Holdings Ltd.

With ambitious plans to add another 100 GW of solar capacity in the next four years, the outlook for solar energy companies remains positive, as identified in a report by Frost & Sullivan. However, Saluja has expressed concerns about the potential for overcapacity. He suggests that the solar industry may see significant consolidation in the coming years, emphasizing that only companies able to scale up will endure.

The IPO market in India has been booming, having raised a record 1.66 trillion rupees (approximately $19.82 billion) this past year, a significant increase from 650 billion rupees during the previous year. Looking ahead, around 85 companies are anticipated to launch listings in the upcoming year, collectively aiming to raise 1.53 trillion rupees (about $18 billion).

Challenges may arise due to economic slowdowns, fluctuating corporate profits, and other external factors like tariff policies introduced by US President Donald Trump. Kunal Rambhia, a fund manager based in Mumbai, predicts that while IPO activity may continue through the first half of 2025, a potential downturn in the market might occur later in the year.

Despite these concerns, some analysts remain optimistic about the market's resilience, citing strong domestic equity inflows. Himanshu Kohli, co-founder of Client Associates, highlights that the Indian IPO landscape is increasingly supported by domestic investors rather than foreign capital. He emphasizes the substantial amounts of investment moved into unlisted shares and pre-IPO companies over the past year, particularly by private equity firms and family offices.

The incoming year is likely to see a diverse range of firms looking to go public, including well-known names in financial services, electronics manufacturing, power generation, and software. Prominent companies expected to submit their IPO filings include Zepto, Flipkart India Pvt, and PayU.

Additionally, there are indications that billionaire Mukesh Ambani plans to separate Reliance Industries' retail and telecom divisions into distinct publicly-listed firms. Over the past several years, the Indian IPO market has been characterized by an influx of micro, small, and medium-sized companies. Most of these companies raised less than $100 million in their respective listings.

As an increasing number of founders aspire to participate in the IPO boom, many have come to understand the advantages of public listings. Vishnu Agarwal, CEO of Stock Knocks, asserts that ownership stakes in larger companies become more valuable after listing. "Founders recognize that having 75% of a $100 million company listed is preferable to owning 100% of a $10 million company," Agarwal remarked. He foresees a significant increase in IPO activity in the next year, as entrepreneurs pursue growth opportunities fervently.

IPO, billionaires, renewable