IPO-bound Apollo Green Energy faces payment delays, credit ratings downgrade debt facilities

Apollo Green Energy IPO Hit by Bond Payment Delays and Debt Downgrades.

Expert Analysis:

• Overdue Payments: Apollo Green Energy has overdue payments to bondholders, with interest expected within the coming week and principal plus overdue interest scheduled for repayment within 70–75 days.

• Debenture Details and Credit Impact: The payments relate to a two-year non-convertible debenture (NCD) that expired on July 19, 2025, raised Rs 6 crore at an issue price of Rs 1 lakh, with credit rating agencies downgrading its debt amid these delays.

• Financial Performance: In FY25, Apollo Green reported a 50 percent YoY increase in net profit, reaching Rs 44.36 crore, and recommended a 15 percent dividend for shareholders.

• Growth and Expansion Plans: The company holds over 400 MW of solar capacity across multiple states, maintains an order book of Rs 3,000 crore, and targets expanding its EPC order book to 1 GW by 2026. The firm had considered approaching public markets to support expansion and secure new projects.

• Market Context: NSDL data shows that at least 10 debenture series from IL&FS group entities and Future Consumer have defaulted on redemption since early 2025, highlighting broader stress in the debt market.