ReNew Power Ventures Pvt. Ltd, one of India’s largest clean energy firms, is exploring an overseas listing, said two people aware of the plan that signals rising global interest in Indian green ventures.
This initial public offering (IPO) plan comes against the backdrop of Thailand’s PTT Group looking to acquire a stake from Goldman Sachs Group in ReNew Power and follows the shelving of an earlier plan for an Indian IPO.
With investors such as Canada Pension Plan Investment Board (CPPIB), Japan’s JERA Co. Inc., Abu Dhabi Investment Authority (ADIA) and GEF SACEF India, the overseas IPO may serve as a benchmark for others companies in India’s clean energy space.
“The potential PTT transaction may be a precursor to the ReNew IPO and a stepping stone to it,” said one of the people cited above seeking anonymity.
“No firm decision has been taken,” the person added.
With the biggest expense being the cost of capital in the green energy business, the financial heft of global oil firms such as PTT will benefit ReNew Power, founded by Sumant Sinha.
ReNew Power is also gearing to tap the offshore bond market for as much as $320 million as it looks to refinance the domestic debt.
“As company policy we do not comment on market speculation,” said a ReNew Power spokesperson in an emailed response to a query. An external spokesperson for Goldman Sachs said that the global firm declined to comment. Queries emailed to PTT Group on Friday remained unanswered.
ReNew Power is also raising funds through asset sales and plans to set up a 2-gigawatt cell and module manufacturing facility in India. It recently terminated the power purchase agreement signed with Solar Energy Corp. of India for a 265MW wind project in Tamil Nadu.
“The IPO can be either listed in the US or UK,” said the second person cited above who also did not want 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,” said the first person cited above.
Oil giants are looking to diversify and invest in India’s emerging green economy as the conventional hydrocarbon space undergoes technological disruptions. PTT’s interest in ReNew Power comes after Malaysia’s state-run oil and gas company Petroliam Nasional Bhd, or Petronas, in April last year acquired Amplus Energy Solutions Pvt. Ltd, one of India’s largest rooftop solar power producers.
Elsewhere, French energy firm Total SA has formed an equal joint venture with Adani Green Energy Ltd, while Norway’s Statoil ASA, Royal Dutch Shell Plc and Russia’s Rosneft had also shown interest in investing in India’s clean energy 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,” said the first person.
ReNew explores listing overseas