Greenko Energies Pvt Ltd Plans Potential $1 Billion IPO

Greenko Energies Pvt Ltd is considering an initial public offering (IPO) that could raise as much as $1 billion. Industry watchers feel the IPO could test investor appetite for renewable energy stocks.

Greenko Energies Pvt Ltd is a renewable energy developer. It develops and operates renewable power projects, including solar, wind and energy storage assets. It is backed by Singapore’s sovereign wealth fund GIC Pte, Abu Dhabi Investment Authority, along with founders Anil Chalamalasetty and Mahesh Kolli.

It has begun preliminary discussions with bankers for a potential share sale as soon as this year. The people familiar with the matter asked not to be identified as the talks are private.

IPO Amid Volatile Renewable Stock Performance

Greenko’s early-stage IPO discussions come at a time when investor sentiment toward renewable energy companies in India has turned cautious. Note that renewable energy stocks have come under pressure in recent months. Slower export demand and delays in building transmission infrastructure have weighed on valuations across the sector.

The weak trading debut of Clean Max Enviro Energy Solutions Ltd earlier this month shows the fragile sentiment. Its shares fell about 18% on its first day of trading. This made it the worst debut in more than four years for an Indian initial public offering of comparable size or larger.

Large Renewable Energy Developer

Greenko ranks among the larger renewable energy developers in India. As per information on the company’s website:

• Its net installed capacity stands at roughly 11 gigawatts (GW) across 20 Indian states.

• Another 20 GW of capacity is under construction.

Over the past decade, the company has raised and deployed more than $10 billion to build the business. That includes more than $3 billion in equity investments and over $5 billion through global green bond issuances.

The company has also been active in refinancing existing debt. In January, Greenko raised 48 billion rupees (around $520 million) from the state-backed National Bank for Financing Infrastructure and Development (NaBFID).

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What The IPO Means For The Sector?

Greenko’s IPO plans come as India accelerates its renewable energy build-out. The country has set a target of achieving 500 gigawatts of renewable energy by 2030. This requires large investments in generation and transmission infrastructure.

Greenko’s scale could place it among the bigger energy listings if the company proceeds with the deal. However, its success will depend on market conditions and investor demand.

Sources:

The Economic Times

Bloomberg