CPPIB-backed ReNew Power files for IPO: Reuters

ReNew Power Ltd filed for an initial public offering on Tuesday that could raise more than US$1 billion in one of India’s biggest listings so far this year.

Goldman Sachs and Canada Pension Plan Investment Board are among the backers of ReNew, which has about 3,921 megawatts of operational wind and solar power generation capacity and another about 1,668 megawatts under development.

ReNew, which in April agreed to buy Ostro Energy Private Ltd in one of India’s biggest renewable energy deals, said in a filing it plans to raise 26 billion rupees (US$387 million).

Global Environment Fund, Green Rock and an arm of Goldman Sachs are selling around 94.4 million shares in the IPO, which a source said could raise more than US$1 billion, although a more specific number would emerge closer to the launch.

Bankers had previously indicated the IPO would be between US$700 and US$900 million.

ReNew’s other current investors include Abu Dhabi Investment Authority and JERA Co Inc, a consortium of two of the biggest Japanese utilities.

Kotak Mahindra, Bank of America Merrill Lynch, Goldman Sachs, JM Financial and JP Morgan are the global coordinators, while HSBC, IDFC Bank, UBS and Yes Securities are bookrunners on the ReNew IPO.

Indian companies have raised nearly US$3 billion from IPOs so far this year, after a record of more than US$11 billion in 2017.

Update: CPPIB said in January it would acquire a stake in ReNew Power for US$144 million. Last month, the pension fund provided US$247 million to support the company’s buy of Ostro Energy.

(Reporting by Devidutta Tripathy; Editing by Alexander Smith)

(This story has been edited by Kirk Falconer, editor of PE Hub Canada)

Photo courtesy of Canada Pension Plan Investment Board