ReNew Power looks at listing overseas

ReNew Power Ventures Pvt. Ltd, considered one of India’s largest clear power corporations, is exploring an abroad itemizing, mentioned two individuals conscious of the plan that indicators rising world curiosity in Indian inexperienced ventures.

This preliminary public providing (IPO) plan comes in opposition to the backdrop of Thailand’s PTT Group seeking to purchase a stake from Goldman Sachs Group in ReNew Power and follows the shelving of an earlier plan for an Indian IPO.

With buyers resembling Canada Pension Plan Investment Board (CPPIB), Japan’s JERA Co. Inc., Abu Dhabi Investment Authority (ADIA) and GEF SACEF India, the abroad IPO might function a benchmark for others corporations in India’s clear power area.

“The potential PTT transaction may be a precursor to the ReNew IPO and a stepping stone to it,” mentioned one of many individuals cited above searching for anonymity.

“No firm decision has been taken,” the particular person added.

With the largest expense being the price of capital within the inexperienced power enterprise, the monetary heft of worldwide oil corporations resembling PTT will profit ReNew Power, based by Sumant Sinha.

ReNew Power can be gearing to faucet the offshore bond marketplace for as a lot as $320 million because it seems to refinance the home debt.

“As company policy we do not comment on market speculation,” mentioned a ReNew Power spokesperson in an emailed response to a question. An exterior spokesperson for Goldman Sachs mentioned that the worldwide agency declined to remark. Queries emailed to PTT Group on Friday remained unanswered.

ReNew Power can be elevating funds by way of asset gross sales and plans to arrange a 2-gigawatt cell and module manufacturing facility in India. It not too long ago terminated the facility buy settlement signed with Solar Energy Corp. of India for a 265MW wind mission in Tamil Nadu.

“The IPO can be either listed in the US or UK,” mentioned the second particular person cited above who additionally didn’t wish to be named.

“Listing is a long-drawn process, and it takes 6-7 months to reach there. ReNew Power is looking at it. It will also provide an option to the existing shareholders to exit. The process is not very far advanced. Bankers are making pitches. This is a capital-intensive business, and they are looking at all options to raise resources,” mentioned the primary particular person cited above.

Oil giants want to diversify and spend money on India’s rising inexperienced economic system as the traditional hydrocarbon area undergoes technological disruptions. PTT’s curiosity in ReNew Power comes after Malaysia’s state-run oil and fuel firm Petroliam Nasional Bhd, or Petronas, in April final yr acquired Amplus Energy Solutions Pvt. Ltd, considered one of India’s largest rooftop solar energy producers.

Elsewhere, French power agency Total SA has fashioned an equal three way partnership with Adani Green Energy Ltd, whereas Norway’s Statoil ASA, Royal Dutch Shell Plc and Russia’s Rosneft had additionally proven curiosity in investing in India’s clear power sector.

“Globally, ESG (environmental, social and governance) investing is a fairly big deal. Given the scenario, perhaps the receptivity (of the IPO) will be better overseas,” mentioned the primary particular person.

ReNew explores itemizing abroad