Indian renewable energy company Continuum Green Energy Ltd, which is backed by UK-based sustainable investor Just Climate and private equity investor Morgan Stanley Infrastructure Partners, has filed draft papers to float an initial public offering worth Rs 3,650-crore ($430 million).
The IPO, which comes amid a spate of renewable energy companies tapping public markets, consists of a fresh issue of Rs 1,250 crore and an offer for sale of Rs 2,400 crore by the company’s Singapore-based holding firm.
The company will use the new money to pay off existing debts and accrued interest, according to the draft documents.
The IPO filing comes months after Just Climate infused $150 million into Continuum Green in August to help it develop wind and solar energy projects in the country. Just Climate owns a 14.65% stake in the company while Singapore-based Continuum Green Energy Holdings Ltd owns 85.35%. The holding company is, in turn, 26% owned by Morgan Stanley Infrastructure Partners. In June, the Morgan Stanley fund had pared its stake in the holding company from 92.3% to 26% by offloading shares back to its promoters.
The IPO comes close on the heels of the listing of several green energy companies including NTPC Green Energy and Acme Solar. Several other green energy IPOs are in the offing as primary market activity in India booms.
Continuum, which was founded by Arvind Bansal and Vikash Saraf in 2009, has in the past attracted interest from the likes of Sun Edison, Sembcorp, Renew Power, Statkraft and Petronas of Malaysia. The company is an independent power producer that supplies green energy to commercial and industrial customers, utilities and power exchanges.
According to its draft red herring prospectus, the company has a portfolio of about 4.79 GWp with projects comprising 2.22 GWp operational, 1.31 GWp under construction and 1.27 GWp of under development.
The company recorded a net loss of about Rs 598 crore for 2023-24 on revenue from operations of about Rs 1,295 crore, compared with a loss of Rs 305 crore on revenue of Rs 970 crore the year before.