16 May 2018
Indian RE firms are set to unveil stock market listing plans in the coming weeks, giving investors a new way to gain exposure to the sector at a time when India is pushing to make renewable power a bigger part of its energy mix. Adani Green Energy, a subsidiary of Indian trading firm Adani Enterprises Ltd, is expected to be spun out & listed on Indian stock exchanges within the next two weeks, said two bankers familiar with the Co.'s plans. Separately, ReNew, India's biggest Co. in terms of RE assets is expected to file papers with Indian regulators for an initial public offering as early as next week, the two bankers said. The two CoS will be the first new pure-play RE firms to come to list in India, since wind energy firm Orient Green Power's listing eight years ago. The sector has in recent years drawn sig. interest from large global sovereign funds & pvt. equity firms including Warbug Pincus, Abu Dhabi Invest. Authority, Singapore's GIC & Macquarie Capital. The listings will help investors gauge market interest & set a bar on valuations for rivals that may also explore listings, say bankers. Adding over 100 GW of renewable capacity will require sig. capital & pvt. markets alone can't fund all of it. India will need over $125 bn to fund its ambitious plan to add 175 GW of renewable power to its grid by 2022, research firm Mercom said. India's installed renewable power capacity stands at about 69 GW, & the majority of its renewable projects are yet to be bid out. Adani Enterprises plans to offload around a quarter of its stake in Adani Green," one of the bankers said, adding this will be followed by Goldman Sachs-backed ReNew Power's IPO. With operating assets of 3.6 GW & 2 GW under construction, ReNew is seen as "big enough to raise substantial capital" from the market, another banker said. The Co., which counts Abu Dhabi Invest. Authority & other big firms as investors, plans to rise up to $900 mn, according to media reports.