The proposed big bang IPO of India's largest renewable energy company by capacity ReNew Power backed by Goldman Sachs, may have got delayed, but ET NOW learns that the Sumant Sinha led firm is exploring fresh fund raising options to address its immediate capital requirements.
"ReNew Power is in advanced discussions with Canada's OMERs to raise funds," an individual familiar with ongoing talks told ET NOW on the condition of anonymity. " They are looking to raise atleast $300 million for growth capital and as part of the proposed transaction may sell a minority stake," added a second source. ET NOW was the first to report the development.
ReNew Power's other backers include Canada Pension Plan Investment Board (CPPIB), Abu Dhabi Investment Authority and Japans JERA Co — a consortium of two of the biggest Japanese utilities. The IPO was to see the company raise Rs 2,600 crore in fresh capital, while existing private equity funds were to sell an aggregate of 94.37 million shares, according to the draft prospectus. The company plans to use the proceeds of the IPO for redemption of certain debentures issued by it and for funding acquisitions and other strategic initiatives. OMERs declined to comment on the story and ET NOW is awaiting a response to an email query sent to ReNew Power.
In its edition dated July 20th, 2018, the Economic Times had reported that the ReNew Power IPO is likely to get deferred after not generating sufficient demand amongst investors. “As you are aware the company filed its draft document and the regulatory process is ongoing. Once the regulatory process is over, based on feedback from the BRLMs and investors, the board and shareholders will decide on the steps going forward including final valuation and timing of the IPO", a ReNew Power spokesperson had said in response to queries from ET.
ReNew is an independent power producer with over 5,600 MW of commissioned and under construction clean energy assets. It develops, builds, owns and operates utility scale wind and solar energy projects as well as distributed solar energy projects that generate energy for commercial and industrial customers. The company was founded in 2011 by Sumant Sinha, a former chief operating officer at Suzlon Energy.
OMERS( Ontario Municipal Employees Retirement System ) is a Canadian pension fund which handles $95bn in net assets as of December 2017. Its major investments include $11,521 mn in private equity, $15,679 mn in infrastructure and $13,760 mn in real estate.