Independent power producer Continuum Green Energy received approval from the capital markets regulator SEBI to go ahead with Rs 3,650-crore IPO (initial public offering) plans.
The IPO will comprise of fresh issuance of Rs 1,250 crore worth shares and an offer-for-sale of shares worth Rs 2,400 crore by promoter Continuum Green Energy Holdings.
The SEBI has issued observation letter on draft documents of Continuum Green Energy on April 15, which means the company can launch its IPO within the next one year. The draft papers were filed with the regulator on December 9 last year.
The company that develops and operates renewable energy projects in India, focussing on supplying green power to commercial & industrial (C&I) consumers, in addition to state and central distribution utilities and power exchanges. It had acquired first 16.50 MW wind project in 2010, and then later increased portfolio to a total operational and under-construction capacity of 3.52 GWp as of December 2024.
Before the launch of public issue, the company is likely to consider raising funds up to Rs 250 crore in pre-IPO round. If it manages to close the pre-IPO placement, then the said amount will be reduced from the fresh issue.
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Mumbai-based Continuum Green Energy will utilise Rs 1,100 crore out of fresh issue proceeds for repayment of debt, and the remainder funds for general corporate purposes. As the end of October 2024, it had outstanding borrowings of Rs 13,291.6 crore.
Continuum Green Energy Holdings has 85.35 percent stake in the company and the remainder 14.65 percent shares are owned by investor JC Infinity (B).
Primary equity investment JC Infinity (B), an affiliate of a fund advised by Just Climate LLP (Just Climate Fund), invested Rs 1,256.25 crore in the company in September 2024, to support the Continuum Group's continued deployment of WSH energy generation and storage projects across India.
Kotak Mahindra Capital Company, Ambit, Citigroup Global Markets India, and JM Financial have been appointed as the book running lead managers for the IPO.
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