India’s largest renewable energy developer has finally filed for Initial Public Offer with the Securities and Exchange Board of India (SEBI) for the largest renewable energy IPO in the country’s history.
ReNew Power Ventures Limited, found in 2011 by Sumant Sinha, has filed draft papers to launch an IPO, the largest in India’s renewable energy sector. The company hopes to raise Rs 6,000 to Rs 7,000 crore ($900-1,050 million).
The company has been on an acquisition spree for the last few months. Proceeds from the IPO are also expected to be used for further acquisitions. The company has grown rapidly to achieve a portfolio of 5.6 gigawatts solar and wind energy capacity — 3.7 gigawatts operational and 1.9 gigawatts under construction.
According to media reports, ReNew will acquire five renewable energy companies that have an installed capacity of 680 megawatts over the next 3-4 months. The company will use cash reserves as well as part of the funds raised from IPO. Acquisition of these companies shall increase ReNew’s installed capacity of 4.9 gigawatts.
ReNew is expected to issue fresh shares to be offered to the public while existing shareholders will also offload some equity. The existing shareholders include Goldman Sachs, Abu Dhabi Investment Authority, and Global Environment Fund. Goldman Sachs has been the earliest investor in the company and stands to gain significantly from the listing.
Several other renewable energy developers are planning to offer equity through IPOs. Orient Green Power is the only pure renewable energy developer to be listed and traded at Indian bourses. The company has given negative returns to its investors every since it was listed nearly eight years back.
A few other companies — primarily wind turbine manufacturers with some installed capacity — are also traded at Indian stock markets. Inox Wind, Indowind Energy, and Suzlon Energy have also given significantly negative returns to investors since their respective IPOs.