ReNew Power planning for an IPO

India's largest clean energy producer, ReNew Power, is planning an initial public offering (IPO) of shares, to raise upto USD 600 million. The company has successfully raised money from Japan's JERA, a joint venture between Tokyo Electric Company and Chubu Electric Company that valued it at USD 2 billion.

Investors such as Goldman Sachs, Abu Dhabi Investment Authority, Asian Development Bank and Global Environment Fund could offload part of their stakes in the proposed issue that will primarily comprise of an ‘offer for sale’ of existing shares.

ReNew’s IPO may be launched within the next 12 months, and could be amongst the largest listings of shares in recent times.

HSBC, Kotak and Bank of America Merrill Lynch are amongst the banks vying for a role in arranging the proposed share sale.

ReNew Power has raised USD 850 million in equity from investors since it was founded in 2011. The company may raise another USD 200 million prior to its IPO, either through equity or quasi-equity instruments to augment its existing commissioned and planned capacity of 3000 MW.

ReNew Power’s portfolio of power generating assets is evenly split between wind and solar plants in its total installed and planned capacity.