Indian renewable energy firms eye stock market listing plans

Vastavam web: Two Indian renewable energy 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 and listed on Indian stock exchanges within the next two weeks, said two bankers familiar with the company’s plans.

Separately, ReNew Power, India’s biggest company in terms of renewable energy assets, is expected to file papers with regulators for an initial public offering as early as next week, the two bankers said.The sector has in recent years drawn significant interest from large global sovereign funds and private equity firms including Warbug Pincus, Abu Dhabi Investment Authority, Singapore’s GIC and Macquarie Capital.

The listings will help investors gauge market interest and set a bar on valuations for rivals that may also explore listings, say bankers.Adding over 100 gigawatts of renewable capacity will require “significant capital and private markets alone can’t fund all of it,” said Alok Verma, Executive Director of Investment Banking at Kotak.To put the financing requirement in context, researcher Mercom estimates corporate funding for the global solar industry was $12.8 billion last year.

Investors are scrambling to raise money and capture market share in India’s expanding green energy sector amid tight deadlines.Another reason for firms seeking IPOs “may be also the promised exit to the investors,” said Sunil Jain, chief executive of Hero Future Energies Ltd, referring to private equity investors who typically look to sell stakes after a certain number of years.