(Reuters) – Indian power producer Continuum Green Energy filed for an initial public offering worth 36.5 billion rupees ($430.26 million) on Monday, as it looks to cash in on the country’s growing clean energy needs.
WHY IT’S IMPORTANT
The renewable energy sector is rapidly expanding in India, where most power demand is still met with coal.
The government is aiming to add at least 500 giga watts of clean energy by 2030 to reduce carbon emissions and large power producers are making pledges to expand their green energy capacities.
Companies such as NTPC Green Energy and Waaree Energies have made successful debuts on Indian exchanges amid growing investor bets clean energy will be the buzzword for the near future.
CONTEXT
There were a flurry of high profile listings in 2024 such as Hyundai Motor India and SoftBank-backed Swiggy, as the country’s markets have remained buoyant.
Before succumbing to a double whammy of foreign fund exodus and dull corporate earnings, India’s benchmark Nifty 50 index had hit multiple record highs throughout the year.
About 298 companies listed on the Indian bourses have raised $16.65 billion this year, as per data compiled by S&P Global Market Intelligence – more than double the amount raised in 2023.
BY THE NUMBERS
Continuum Green Energy will issue fresh shares worth 12.5 billion rupees while existing stakeholders will sell stock worth 24 billion rupees, its draft prospectus showed.
The company’s annual restated consolidated net losses for the fiscal year ended March 2024 widened year-on-year to 5.98 billion rupees from 3.67 billion rupees.
Over the same period, its annual revenue jumped over 33% to 12.95 billion rupees.
($1 = 84.8330 Indian rupees)
(Reporting by Hritam Mukherjee in Bengaluru; Editing by Krishna Chandra Eluri)