New Delhi, June 26 -- ReNew Energy Global Plc, India's second-largest green energy company by installed capacity, could be looking at the possibility of selling its solar manufacturing business, multiple executives in the solar industry have told VCCircle.

The development marks a potential change in the Nasdaq stock exchange-listed company's plans as it was previously looking to list the solar module manufacturing business in India, VCCircle reported in October last year. The solar manufacturing business is housed under ReNew Photovoltaics Pvt Ltd, which raised $100 million (Rs 870 crore then) from British International Investment (BII) in May last year by selling a 10% stake.

While ReNew told VCCircle it has no plans to sell the solar business, a senior executive in the renewable energy industry said a few peer companies in the solar manufacturing sector had been informally approached by investment bankers, on ReNew's behalf, to gauge their interest. The person, who did not wish to be identified, added that, as far as he was aware, no formal sale process had been put in place.

The development also comes at a time when ReNew founder Sumant Sinha and its largest shareholder, Canada Pension Plan Investment Board (CPPIB), are making a second attempt to delist the company from the Nasdaq.

The person cited above said that less-than-favorable market conditions over the past few months may force the company to rework its plan to list the manufacturing business. "There is no market appetite for an IPO [in India] right now. Moreover, they are not keen on investing more money into the manufacturing business, which is not their core business. So they may be thinking about an exit," this person said.

A second industry executive said he was also aware of ReNew's move to sell its manufacturing assets and pointed to a glut in the solar manufacturing market as the most plausible explanation behind an independent power producer like ReNew seeking to exit its manufacturing business. This person said that module manufacturing in India now has excess capacity and most of it is "shut" while "cell manufacturing is limited."

This person, however, said that, in his opinion, ReNew was unlikely to finally be able to sell the asset as "their ask is arbitrary". He did not cite the valuation ReNew may have sought for the manufacturing business, saying the number was "confidential".

"My gut (feel is) ReNew won't sell," he said.

A third industry executive said that "many more" companies could look to sell their manufacturing businesses by 2027 or 2028. For instance, VCCircle reported this week that Enpee Group could be looking to sell its solar manufacturing business, RenewSys India Pvt Ltd.

None of the people cited above are directly associated with ReNew.

ReNew's denial

On its part, ReNew Energy denied any plans to exit its manufacturing business. "We have reviewed the queries raised and wish to state categorically that the information you have received from market sources is incorrect, speculative and without any basis in fact. We deny the same in its entirety," ReNew said in response to a detailed questionnaire. CPPIB did not respond while a spokesperson for BII declined to comment.

On background, a ReNew executive said the company may actually go ahead with its plan to list the manufacturing arm, sometime next year. He also said it is looking at venturing into the polysilicon business, but offered no details.

ReNew is indeed adding capacity, at least for now. On Wednesday, Andhra Pradesh chief minister N. Chandrababu Naidu laid the foundation stone for a 6.5 GW solar manufacturing plant that the company plans to set up in Rambilli in Ankapalli district, at an investment of Rs 5,400 crore.

ReNew first entered solar manufacturing in 2020 as a supply-chain security measure, setting up ReNew Photovoltaics as a dedicated manufacturing subsidiary in 2021. The subsidiary operates a 6.4 GW solar PV module facility in Jaipur, Rajasthan, and a 2.5 GW solar cell facility in Dholera, Gujarat. The company is adding a further 4 GW of TOPCon cell capacity at Dholera, which would take total cell manufacturing to 6.5 GW, achieving a balanced cell-to-module ratio. This capacity expansion is being partly financed with BII's investment.

To be sure, the manufacturing business has been growing rapidly. During fiscal year 2025-26, ReNew's solar manufacturing facilities produced more than 4.1 GW of modules and nearly 1.86 GW of cells.

ReNew generated total revenue of Rs 4,194.4 crore ($447 million) from external sales of solar module and cell manufacturing operations for FY26, compared with Rs 1,325.3 crore ($141 million) for FY25. Net profit and adjusted EBITDA for FY26 from external sales of its solar module and cell manufacturing operations were Rs 884.5 crore and Rs 1,478.2 crore respectively, compared with Rs 262.3 crore and Rs 421.2 crore, respectively, for FY25, according to the company's financial statements.

ReNew's IPP portfolio is far larger in scale. As of May 2026, the portfolio stood at approximately 20.2 GW, including projects under development and in the pipeline, with commissioned capacity at approximately 10 GW.

ReNew has also been recycling capital to fund future growth on its IPP side. In March, it sold a 100 MW project in Tamil Nadu to a French group at an enterprise value of $49 million.

Take-private attempts

The potential strategic rethink around the manufacturing arm comes against a backdrop of corporate turbulence at the parent level. In December 2024, a consortium comprising CPPIB, the Abu Dhabi Investment Authority (ADIA), Abu Dhabi Future Energy Company (Masdar) and ReNew founder Sinha made a non-binding proposal to take the company private at $7.07 per share. The offer was lifted to $8.15 per share in mid-October 2025.

The consortium's efforts collapsed in December 2025 when Masdar confirmed it was withdrawing, automatically terminating all discussions related to the proposed transaction. Masdar provided no reasons for its exit. ReNew's shares plummeted 28% on Nasdaq the day after Masdar's decision became public.

Following the deal collapse, ReNew said it "intends to continue evaluating options for realising value from various parts of its businesses."

CPPIB and Sinha revived the delisting plan late last month, regulatory filings show. CPPIB holds approximately 34.4% of ReNew Energy while Sinha owns 19.35%.

The pension fund and Sinha have offered to buy ReNew shares at $6.75 apiece. Shares of ReNew are currently trading around $6.2 apiece on the Nasdaq.

Solar manufacturing sector, headwinds

The potential sale process by ReNew comes against the backdrop of a solar manufacturing sector under significant structural stress - headwinds that could complicate buyer appetite and valuation but simultaneously make quality assets more affordable.

India's solar manufacturing sector is dominated by Waaree Energies, Adani Solar, Premier Energies, Vikram Solar and Tata Power Solar, all of whom have been aggressively expanding capacity.

India's solar PV module manufacturing capacity, turbocharged by the Production Linked Incentive (PLI) scheme and the government's Approved List of Models and Manufacturers (ALMM) framework, has expanded at a pace that now significantly outstrips domestic demand.

Credit rating firm ICRA Ltd projects module manufacturing capacity to rise to over 165 GW by March 2027, while annual solar capacity installation is projected at only 45-50 GWdc versus 60-65 GW of module production annually.

US tariffs significantly impacted India's export momentum, with module exports to the US falling 52% in the first half of 2025 compared to the preceding period. During August-September 2025, India's solar module exports fell from approximately $134 million to around $80 million following the blanket 50% US tariff.

The US was the dominant export destination for Indian solar manufacturers, accounting for nearly 97% of total solar exports in the first nine months of 2025.

The introduction of ALMM List-II for solar cells, effective June 2026, adds another dimension of complexity. Module manufacturers will be required to source cells only from ALMM List-II-approved domestic manufacturers for projects that fall within ALMM's scope.

Published by HT Digital Content Services with permission from VC Circle.