Continuum Green Energy IPO Bound, To Raise Rs 3650 cr

By Saur News Bureau/ Updated On Tue, Dec 10th, 2024

Highlights :

The Green energy developer follows the recent listings of NTPC Green and Acme Solar Holdings

Continuum Green Energy IPO Bound, To Raise Rs 3650 cr

Mumbai Headquartered Continuum Green Energy Limited has filed its draft red herring prospectus (DRHP) with the capital market regulator, Securities and Exchange Board of India (SEBI), for an initial public offering (IPO). The green energy developer is backed by Just Climate and Morgan Stanley Infrastructure Partners.

Continuum Green Energy primarily focuses on supplying green power to commercial and industrial consumers, along with state and central distribution utilities and power exchanges. The firm’s largest operating single project site is at Rajkot (Gujarat), where it has an operational capacity of 394.3 MW. It acquired the first 16.50 MW wind project in 2010 and has grown the portfolio to a total operational and under-construction capacity of 3.52 GWp presently.

As one of the few developers that retained a strong interest in wind projects, the company has an operational renewable capacity of 2.22 GWp and an additional 1.31 GWp under construction. This is evenly split between wind and solar projects. That is also due to its focus on the C&I segment with longer duration green energy demands, than Utility scale or rooftop segment

Promoters include Arvind Bansal and Vikash Saraf.

Continuum’s IPO plans follow the recent listing of NTPC Green Energy and Acme Solar Holding’s, which continue to enjoy contrasting valuations.

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IPO details

The proposed IPO includes a fresh issue of equity shares totaling up to ₹1,250 crore, along with an offer for sale (OFS) of equity shares amounting to up to ₹2,400 crore by Continuum Green Energy Holdings Limited, the promoter and selling shareholder.

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The proceeds from the fresh issue will be used to repay or prepay, in whole or in part, certain outstanding borrowings taken by its subsidiaries. This includes the payment of accrued interest on these borrowings, with an investment of ₹1,100 crores in the subsidiaries. Additionally, funds will be allocated for general corporate purposes.

The company may conduct a Pre-IPO placement of specified securities, raising up to ₹250 crores, before filing the Red Herring Prospectus (RHP) with the Registrar of Companies (RoC). If the Pre-IPO placement is completed, the size of the fresh issue will be reduced by the amount raised through this placement.

Considering everything, the time seems right for the firm to have a successful float in the markets, and it should be interesting to see how it is priced finally.