Matrix Gas & Renewables Launches Its IPO to Accelerate Green Hydrogen in India

Matrix Gas & Renewables plans to raise up to $143 million through its IPO to develop green hydrogen and gas infrastructure, leveraging the momentum of India's dynamic IPO market.

Partagez:

Matrix Gas & Renewables, a subsidiary of Gensol Group, is preparing for an Initial Public Offering (IPO) aimed at raising between ₹10 billion and ₹12 billion ($119 to $143 million). This funding is intended to support the company’s expansion into green hydrogen and gas infrastructure. The initiative comes at a time when India’s IPO market is experiencing a surge, with 250 companies having already raised over $9 billion by September 2024, surpassing the amounts raised in 2023.

Key Strategic Projects

Matrix is heavily focused on developing large-scale green hydrogen projects, with a goal to achieve 1,000 MW of green hydrogen production over the next three years. This initiative aligns with India’s broader strategy to increase renewable energy share and meet decarbonization targets. The company has already established a significant presence by partnering with Gensol Engineering to develop India’s first Green Hydrogen Valley in Pune, Maharashtra.

The Pune project, built on a Build-Own-Operate (BOO) model, will produce green hydrogen through electrolysis and supply it to the specialty chemicals sector under a 20-year offtake agreement. This facility, supported by the National Chemicals Laboratories (NCL) in Pune, represents a crucial milestone in India’s green hydrogen ambitions.

Pre-IPO Funding and Capital Allocation

Prior to the IPO, Matrix raised ₹350 crore ($42 million) through a pre-IPO round from key investors, including Gunavanth Vaid (4GCapital Venture), Sarda Group, and Blue Lotus Fund. This funding is intended to accelerate the company’s growth in gas aggregation, acquisition of city gas distribution assets, and establishing a hydrogen electrolyzer manufacturing plant. The electrolyzer plant, set up in collaboration with Gensol, will be crucial for scaling production capacity and lowering the costs of green hydrogen.

Financial Viability and Market Positioning

Matrix Gas & Renewables has adopted a balanced capital structure for its projects, planning to fund its expansion with 70% debt and 30% equity, ensuring financial stability while maintaining control over equity dilution. The upcoming IPO will strengthen its ability to finance the ₹35 billion ($420 million) capital expenditure needed to develop its renewable portfolio.

Investor Sentiment and Market Dynamics

Matrix’s IPO comes at a time when the Indian renewable energy sector is attracting strong interest from both institutional and retail investors. The rapid growth of the sector, driven by supportive government policies such as the National Green Hydrogen Mission, positions Matrix favorably for its public listing. The focus on green hydrogen aligns with global trends towards decarbonization, making Matrix a compelling investment in India’s evolving energy landscape.

Strategic Outlook

Matrix’s approach includes integrating its expertise in gas aggregation and hydrogen production with innovative renewable solutions. The company is not only investing in infrastructure but also expanding its technological capabilities in areas like green steel and green ammonia production, aiming to become a leader in India’s low-carbon industrial transition.

Tree Energy Solutions and CPC Finland will produce 125,000 tonnes annually of e-NG at the Finnish port of Rauma, targeting European and international markets with a significant investment.
The European Commission grants €3.5mn to support preparatory work for a Franco-German cross-border network aimed at transporting hydrogen between the Grand Est region and Baden-Württemberg starting in 2029.
French company McPhy Energy awaits a court decision regarding offers submitted during its judicial reorganization, paving the way for probable liquidation and potential delisting of its shares.
The majority-Indigenous-owned Canadian manufacturer HyVera Distributed Energy is introducing an eCat pellet that instantly produces ultra-pure green hydrogen without external electricity and is counting on two pilot plants to simplify industrial supply.
Underground hydrogen storage, essential to support its growth, continues to face significantly higher costs than natural gas storage, along with major technical challenges hindering its competitiveness against conventional energies.
Singapore-based hydrogen specialist Hydrexia seals a protocol with Indonesian gas giant Samator to deploy purification, transport and storage of hydrogen, betting on rapidly growing local demand and export outlets to the Asia-Pacific region.
Cadiz Inc. signs a memorandum of understanding with British company Hoku Energy for a large-scale energy project including green hydrogen, solar power, and digital infrastructure in the Californian desert, projecting annual revenues of up to $10mn.
BP indefinitely halts its blue hydrogen project at the Whiting refinery in Indiana, raising questions about the future of federal funding and the impact on regional plans for a decarbonized hydrogen sector in the United States.
The Polish energy group ORLEN receives a non-repayable grant of €382 million from the National Recovery Plan to finance its renewable and low-emission hydrogen production initiatives.
Georgia Power and Mitsubishi Power announce successful completion of an unprecedented test incorporating 50% hydrogen into an advanced gas turbine, reducing CO2 emissions by 22% compared to natural gas alone.
Neoenergia has begun construction of one of Brazil's first green hydrogen plants, aimed at supplying heavy and light vehicles, with an investment exceeding 30 million Brazilian reais ($5.99mn).
The SA-H2 fund, supported by international partnerships and local institutional backing, mobilises 37 million USD to develop export-oriented green hydrogen from South Africa, with an initial concrete project announced.
Turbotech reports successful combustion testing of a hydrogen turboprop, developed through digital simulation with Ansys, marking an industrial milestone in light aircraft using alternative fuel.
France Hydrogène responds to the Cour des Comptes report published on June 5, criticising an incomplete reading of updated targets and the economic impacts of decarbonised hydrogen development.
The Belfort Commercial Court has opened a judicial reorganisation procedure for McPhy, while a renewed call for tenders for its asset sale is now set to close on 13 June.
Plug Power CFO Paul Middleton acquired 650,000 shares on the market, affirming his support for the long-term strategy of the hydrogen-focused company.
The Canadian government is funding an initiative to support 40 SMEs in British Columbia’s hydrogen sector, aiming to increase foreign investment and expand international market share.
Developer CWP Global has paused its $40 billion AMAN project in Mauritania due to a lack of buyers for green ammonia despite favourable local conditions.
A study reveals that the profitability of African green hydrogen exports to the European Union depends on political support from Europe, despite the abundance of ongoing projects on the continent.
Plug Power expands its partnership with Allied Green through a new 2 GW electrolyzer deal tied to a $5.5bn chemical plant in Uzbekistan.