Prozeal Green Energy IPO

Prozeal Green Energy Limited IPO Strengths

• Pan-India “Plug-and-Play” Solar Park Model

Prozeal Green Energy Limited’s “plug-and-play” solar park model offers turnkey solar solutions with pre-approved infrastructure, reducing costs, delays, and regulatory hurdles. By September 2024, the company successfully commissioned 214.25 MWp capacity, enabling faster, efficient solar deployment across India for commercial and industrial clients.

• Proven Project Execution Capabilities

Prozeal Green Energy Limited has executed 182 solar projects totalling 783.98 MWp across 17 Indian states and Nepal. Backed by a skilled design, engineering, procurement, and onsite project team, the company ensures timely, high-quality delivery. Its performance guarantees have never been invoked since inception.

• Robust Asset Management Capabilities

Prozeal Green Energy Limited provides asset management services for IPP clients, facilitating customer acquisition, contract execution, and long-term PPAs. With 158 MWp capacity under management, Prozeal ensures optimal plant performance, enhancing project sustainability, strengthening client partnerships, and positioning itself as a trusted turnkey solar solutions provider.

• Strong Order Book

As of September 30, 2024, Prozeal Green Energy Limited had a robust Order Book worth ₹22,209.22 million across 929.08 MWp. Projects span ground-mounted and rooftop solar systems for commercial, industrial, and government clients, with additional EPC contracts and letters of intent received post-September 2024.

• Strong Financial Performance and Metrics

Prozeal Green Energy has demonstrated impressive financial growth, with revenue increasing from ₹2,871.85 million in Fiscal 2022 to ₹9,488.82 million in Fiscal 2024. Key metrics include substantial EBITDA and profit growth, alongside a significant increase in executed projects, new business orders, and O&M portfolio.

• Experienced Promoters and Key Management Personnel

Prozeal Green Energy benefits from the leadership of Shobit Baijnath Rai and Manan Hitendrakumar Thakkar, both with over 13 years of experience in renewable energy. Their expertise spans project management, client relations, and strategic growth, driving the company’s success. The management team also includes specialists in finance, operations, and procurement.

More About Prozeal Green Energy Limited

Prozeal Green Energy Limited, recognized as the fourth-largest solar EPC company in India by revenue for Fiscal 2024, has positioned itself as a leader in the renewable energy sector. The company delivers comprehensive end-to-end renewable energy solutions, specializing in the engineering, procurement, and construction (EPC) of solar power projects, with a strong focus on the commercial and industrial sectors.

Core Services

Prozeal Green Energy focuses on providing turnkey solutions for solar energy projects, primarily through its Plug-and-Play solar park model. This model simplifies the deployment of solar projects by managing the entire process, from conceptualization and land acquisition to project commissioning. Key services include:

• Project Deployment: Handling approvals, including for evacuation lines from the solar plant to the electricity grid.

• Customized Solutions: Offering options for Capex or Opex models, land purchase or lease, and selecting suitable technologies tailored to client needs.

Diversified Offerings

In addition to solar power projects, Prozeal Green Energy has expanded into the electric vehicle (EV) charging infrastructure sector. The company provides EPC services for setting up EV charging stations under the Charge Point Operator (CPO) model, with four operational stations and plans for 50 more across India. Furthermore, Prozeal is exploring hybrid (wind-solar) parks in Gujarat and has secured grid connectivity approval for a combined capacity of 54 MW.

Recent Achievements

• Public EV Charging Stations: Established four public charging stations and facilitated the installation of 50 stations across 25 locations.

• Expansion into Nepal: Commissioned a 9.20 MWp solar project in Nepal in October 2024.

• Group Captive Solar Projects: Engaged in three solar power projects with a combined capacity of 19.39 MWp in collaboration with commercial and industrial clients.

Awards and Recognitions

Prozeal Green Energy has garnered several awards, including the “EPC Company of the Year – Industrial Award” from Solar Quarter Magazine (2023) and the “Gujarat State Green Future Leadership Award” from World Sustainability (2023).

With a strategic vision for growth and a commitment to sustainability, Prozeal Green Energy continues to play a pivotal role in advancing India’s renewable energy landscape.

Industry Outlook

Solar Energy Market

India’s solar energy market is experiencing robust growth, driven by government initiatives and increasing adoption across sectors.

• Market Size and Growth: Valued at approximately USD 10.3 billion in 2024, the market is projected to reach USD 50.4 billion by 2031, growing at a CAGR of 21.9% .

• Government Initiatives: Programs like the National Solar Mission and financial incentives have bolstered solar adoption in residential, commercial, and industrial sectors.

• Capacity Expansion: India aims to add 35 GW of solar capacity by March 2025, contributing to the target of 500 GW of non-fossil fuel power by 2030 .

Power EPC Market

The Power Engineering, Procurement, and Construction (EPC) market is also witnessing significant growth, fueled by the increasing demand for energy infrastructure.

• Market Size and Growth: Estimated at USD 13.8 billion in 2022, the market is expected to grow at a CAGR of 21.94%, reaching USD 45.36 billion by 2029 .

• Growth Drivers: Factors such as rapid industrialization, urbanization, and technological advancements are driving the demand for power EPC services.

• Challenges: Despite growth, the sector faces challenges including project delays, regulatory hurdles, and financial constraints

How Will Prozeal Green Energy Limited Benefit

• Prozeal Green Energy Limited is well-positioned to leverage the growth of India’s solar energy market, capitalizing on the government’s renewable energy targets and initiatives.

• The company’s extensive track record of 182 projects and 783.98 MWp of capacity provides a strong foundation for future expansion.

• Prozeal’s turnkey solutions and Plug-and-Play solar park model streamline project deployment, offering clients a hassle-free experience.

• The company’s entry into electric vehicle (EV) charging infrastructure aligns with India’s push for sustainable mobility, providing additional growth opportunities.

• With an order book of ₹22,209.22 million, Prozeal is poised to benefit from the increasing demand for solar and EV infrastructure.

• Prozeal’s expertise in hybrid solar-wind parks opens new avenues in India’s renewable energy mix, enhancing its market competitiveness.

Peer Group Comparison

Company Name	Revenue (₹ million)	Face Value (₹)	P/E Ratio	Basic EPS (₹)	RoNW (%)	NAV (₹)
Prozeal Green Energy Limited*	9,488.82	2.00	N.A.	16.84#	69.87%	34.38
Peer Groups
Sterling & Wilson Renewable Energy Ltd	30,353.70	1.00	Not measurable	(10.40)	(121.17%)	33.09
KPI Green Energy Ltd	10,239.00	5.00	27.43	14.09	29.56%	63.67
Waaree Renewable Technologies Ltd	8,765.03	2.00	59.75	13.95	87.66%	23.64
Gensol Engineering Ltd	12,110.80	10.00	13.64	22.37	26.66%	100.02

Key insights

• Revenue: Sterling & Wilson leads with the highest revenue at ₹30,353.70 million, followed by Gensol and KPI. Prozeal’s revenue is competitive, surpassing Waaree, indicating its growing position in the renewable energy space.

• Face Value: Face values vary across peers, with Gensol having the highest at ₹10, indicating larger nominal capital per share. Prozeal’s ₹2 face value aligns with Waaree’s, reflecting a standard equity base structure.

• Price-to-Earnings (P/E) Ratio: Prozeal’s P/E is not available, possibly due to its IPO stage. Among peers, Waaree shows the highest investor confidence with a P/E of 59.75, while Gensol remains more attractively valued at 13.64.

• Basic EPS: Gensol tops with ₹22.37, showcasing strong profitability. Prozeal follows with ₹16.84, reflecting sound earnings. Sterling & Wilson’s negative EPS indicates losses, highlighting Prozeal’s superior performance among emerging renewable energy players.

• Return on Net Worth: Waaree leads with 87.66%, reflecting high shareholder return. Prozeal’s 69.87% indicates robust profitability and efficient capital use. Sterling & Wilson’s negative RoNW highlights financial stress, in contrast to peers’ positive returns.

• Net Asset Value: Gensol’s NAV is the highest at ₹100.02, showing strong asset backing per share. Prozeal’s ₹34.38 is healthy and exceeds Waaree’s. KPI shows balanced strength with a NAV of ₹63.67, supporting investor confidence.

Key Strategies for Prozeal Green Energy Limited

• Capitalising on India’s Renewable Energy Growth

Prozeal Green Energy Limited is strategically positioned to capitalize on India’s growing renewable energy sector. With the increasing power demand and supportive government policies, Prozeal aims to expand its domestic operations. The company focuses on solar EPC projects and solar park development, leveraging local resources and expertise to enhance its market presence across India.

• Strategic Expansion of Renewable Park Business

Prozeal Green Energy Limited is expanding its portfolio of renewable energy parks across India. By adopting the solar park model, the company aims to streamline project execution and land acquisition processes, enhancing its service offerings to commercial and industrial clients. The company is actively pursuing solar park projects in key regions, focusing on efficiency and scalability.

• Diversification into Green Energy Solutions for Industrial Applications

Prozeal Green Energy Limited is diversifying into renewable solutions beyond solar energy, including green hydrogen and biomass systems. The company focuses on helping industrial clients transition to sustainable energy sources, providing EPC services for green energy projects. By leveraging its expertise in large-scale solar projects, Prozeal is well-positioned to lead in decarbonization efforts across industries.

• Diversification into Group Captive and Third-Party Power Plant Models

Prozeal Green Energy Limited is venturing into group captive and third-party solar power projects, leveraging its expertise in renewable energy project management. The company’s strategy involves long-term PPAs with industrial and commercial clients, offering cost-effective and sustainable energy solutions. By securing steady cash flows, Prozeal aims to enhance profitability and scalability in the renewable energy market.

• Strengthening Market Position through Strategic Partnerships

Prozeal Green Energy Limited is expanding its market reach by strengthening partnerships with stakeholders in the renewable energy sector. The company is focused on building long-term relationships with engineers, suppliers, and consultants to optimize project delivery. Through these collaborations, Prozeal aims to enhance its service offerings and provide clients with integrated renewable energy solutions.

• Expansion into Hybrid Wind-Solar Projects

Prozeal Green Energy Limited is advancing into hybrid wind-solar projects, with a focus on Gujarat, to diversify its energy portfolio. The company has secured grid connectivity approval for two wind-solar hybrid parks, each with a 54 MW contracted capacity. This strategic expansion aims to harness both wind and solar energy, creating efficient, sustainable power generation solutions.