ReNew Energy Ventures Pvt. Ltd, considered one of India’s largest clear power corporations, is exploring an abroad itemizing, mentioned two folks conscious of the plan that alerts rising international curiosity in Indian inexperienced ventures.
This preliminary public providing (IPO) plan comes in opposition to the backdrop of Thailand’s PTT Group trying to purchase a stake from Goldman Sachs Group in ReNew Energy and follows the shelving of an earlier plan for an Indian IPO.
With traders resembling Canada Pension Plan Funding Board (CPPIB), Japan’s JERA Co. Inc., Abu Dhabi Funding Authority (ADIA) and GEF SACEF India, the abroad IPO could function a benchmark for others corporations in India’s clear power area.
“The potential PTT transaction could also be a precursor to the ReNew IPO and a stepping stone to it,” mentioned one of many folks cited above looking for anonymity.
“No agency determination has been taken,” the particular person added.
With the most important expense being the price of capital within the inexperienced power enterprise, the monetary heft of worldwide oil corporations resembling PTT will profit ReNew Energy, based by Sumant Sinha.
ReNew Energy can be gearing to faucet the offshore bond marketplace for as a lot as $320 million because it appears to refinance the home debt.
“As firm coverage we don’t touch upon market hypothesis,” mentioned a ReNew Energy 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 Energy can be elevating funds by asset gross sales and plans to arrange a 2-gigawatt cell and module manufacturing facility in India. It just lately terminated the ability buy settlement signed with Photo voltaic Power Corp. of India for a 265MW wind undertaking in Tamil Nadu.
“The IPO could be both listed within the US or UK,” mentioned the second particular person cited above who additionally didn’t wish to be named.
“Itemizing is a long-drawn course of, and it takes 6-7 months to achieve there. ReNew Energy is it. It’ll additionally present an choice to the prevailing shareholders to exit. The method is just not very far superior. Bankers are making pitches. It is a capital-intensive enterprise, and they’re all choices to lift assets,” mentioned the primary particular person cited above.
Oil giants want to diversify and spend money on India’s rising inexperienced financial system as the traditional hydrocarbon area undergoes technological disruptions. PTT’s curiosity in ReNew Energy comes after Malaysia’s state-run oil and gasoline firm Petroliam Nasional Bhd, or Petronas, in April final yr acquired Amplus Power Options Pvt. Ltd, considered one of India’s largest rooftop solar energy producers.
Elsewhere, French power agency Whole SA has fashioned an equal three way partnership with Adani Inexperienced Power 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 reasonably massive deal. Given the state of affairs, maybe the receptivity (of the IPO) can be higher abroad,” mentioned the primary particular person.
ReNew explores itemizing abroad