ReNew Power, an India-based renewable energy producer backed by utilities Tokyo Electric Power and Chubu Electric Power, plans to raise up to $600m in an initial public offering, the Economic Times reported on Friday.
Founded in 2011, ReNew oversees a 1.5 GW portfolio of operational wind farms and solar power plants, and a further 1.8 GW of projects are under construction.
The company intends to publicly list in the next year and will primarily offer existing shares rather than issuing new stock, according to people directly aware of the plans.
ReNew has raised a total of $855m in funding, having received $200m from Jera, a joint venture between Japan-based Tokyo Electric Power and Chubu Electric Power, in February this year at a $2bn valuation.
Investment banking firm Goldman Sachs, which provided $200m of funding for ReNew at its launch, remains its largest shareholder, while other investors include sovereign wealth fund Abu Dhabi Investment Authority, Asian Development Bank and Global Environment Fund.
The company may look to close an additional $200m in equity or quasi-equity financing before the IPO launch in order to support completion of its outstanding projects
Renewables currently make up about 15% of India’s 300 GW installed power generation capacity, but the government announced plans in December 2016 to increase that figure to 57% by 2027.
– Photo courtesy of ReNew Power