On Tuesday, ReNew Power Ltd filed for an initial public offering issue with the regulator that could raise over Rs. 6,710 crore in one of the biggest IPO listings so far in 2018. As per the draft prospectus, the company will raise Rs. 2,600 crore in fresh capital while the company's existing PE investors will sell a total of 94.37 million shares.
The renewable energy company is engaged in developing, building and operating utility scale wind and solar energy projects that facilitate the generation of energy for industrial and commercial customers.
Goldman Sachs and Canada Pension Plan Investment Board (CPPIB) are among the backers of the company. In April, ReNew agreed to acquire Ostro Energy Private Ltd in one of the biggest deals in the renewable energy space and announced its plans to raise a capital of Rs. 2,600 crore in a filing.
The sale of around 94.4 million shares by Global Environment Fund, Green Rock and an arm of Goldman Sachs is expected to raise over $1 billion but a more specific number would be drawn as the IPO's launch nears.
The other investors in the company are Abu Dhabi Investment Authority and JERA Co. Inc, which is a consortium of two of the leading Japanese utilities.
The company plans to use the proceeds of the IPO for redemption of some debentures issued by the company as well as to finance other strategic initiatives and acquisitions.
Kotak Mahindra, Bank of America Merrill Lynch, Goldman Sachs, JM Financial and JP Morgan are the global coordinators, while HSBC, IDFC Bank, UBS and Yes Securities are book runners of the ReNew IPO.
ReNew Power was founded in the year 2011 by Sumant Sinha, a former CEO at Suzlon Energy, a wind turbine making company.