May 10, 2018 Read More →

ReNew IPO a Clear Indicator of India’s Growing Renewables Sector

Quartz:

The first initial public offering (IPO) in India from the booming renewable energy sector is here.

ReNew Power, India’s largest renewable energy producer, is looking to raise Rs2,600 crore ($390 million) through its first public share sale. The move comes just a month after ReNew sealed India’s biggest renewable energy deal when it acquired New Delhi-based Ostro Energy for around $1.5 billion.

The company intends to utilize the funds from the share sale to acquire companies and repay loans of certain subsidiaries, among other things. The IPO will comprise a fresh issue of shares worth Rs 2,600 crore, while existing shareholders, including Global Environment Fund, Green Rock Energy and GS Wyvern Holdings, an investment arm of Goldman Sachs, will sell some of their equity.

Founded by Sumant Sinha, a former Wall Street banker, ReNew currently has an installed capacity of over 5,800 megawatts (MW) across wind and solar power plants. The seven-year-old company is backed by Goldmans Sachs, Abu Dhabi Investment Authority, Canada Pension Plan Investment Board, among other investors, and is valued at around $2 billion.

While New Delhi-based solar power producer Azure Power went public in 2016 and listed on the New York Stock Exchange, ReNew’s will be the first public issue by a homegrown clean energy company on the Indian bourses.

The success or failure of ReNew Power’s IPO will also be a benchmark for the rest of the sector. “(The) renewables sector has reached an inflection point now,” said Amit Kumar, a partner at consulting firm PwC, who focuses on the clean energy sector. A successful IPO from ReNew could give other Indian renewable energy players the confidence to raise funds from the Indian market, Kumar added.

More: India’s Largest Renewable Power Company Is Set To Go Public

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