Gurgaon-headquartered ReNew Power Ventures is looking to launch its IPO over the next year or so. Billed as India’s largest renewable power producer, ReNew Power IPO is likely to raise USD600 million (INR3,865 crore), reported The Economic Times. “The IPO could be launched within the next 12 months and could be amongst the largest listings of shares in recent times,” said ReNew Power Chairman Sumant Sinha. Although regulatory paperwork for the IPO has not started yet, HSBC, Kotak and Bank of America Merrill Lynch are understood to be in race for managing the IPO.
According to its website, ReNew Power Ventures has more than 3,000 MW of commissioned and under-construction clean energy assets. In the latest financial year, it doubled its power generation capacity to over 2,000 MW. The company’s investments are in solar and wind power generation projects.
ReNew Power Ventures’ investors include Goldman Sachs, Abu Dhabi Investment Authority, Asian Development Bank (ADB), and Global Environment Fund. Japan’s JERA – a joint venture between Tokyo Electric Power (TEPCO) and Chubu Electric Power – invested USD200 million in ReNew Power Ventures early this year, valuing the company at nearly USD2 billion. Except JERA, other investors are likely to partially offload their stakes in the IPO through offer for sale (OFS) route.
ReNew Power IPO to pave way for other renewable energy hopefuls
In recent years, renewable energy companies have attracted great attention and investment from global players. However, not a lot of such companies are listed on stock exchanges. In fact, India counts Chennai-based Orient Green Power as its sole listed renewable energy company. To a large extent, this is due to the long gestation periods in power business and poor track record of rewarding shareholders.
Nevertheless, several renewable players are now waiting on the sidelines to bring their IPOs in India. These include Hyderabad-based Mytrah Energy and Chennai-based OPG Power and both are already listed on London Stock Exchange’s Alternative Investment Market (AIM). Blackstone-backed Hindustan Power Projects (HPPL) is also looking to list itself in India. A successful listing of ReNew Power IPO could work wonders for all these players.