Mytrah Energy India Pvt Ltd is looking to merge with other green energy companies in India to create a bigger entity before it lists itself in the United States through the Special Purpose Acquisition Company (SPAC) route option, Mint reported citing two people aware of the matter.
The Hyderabad-based company is planning to combine green energy firms, including Mytrah Energy, having less than 5 gigawatts (GW) portfolio, said the people cited above. They added that the merged entity may be listed through the SPAC route.
Moneycontrol could not independently verify the report.
SPAC is a shell company with the aim to raise capital via an initial public offering (IPO) to acquire a private business at a later date and then take it public without going through the traditional route of IPOs. SPAC has no commercial business of its own and is managed by experts in a certain sector or a sponsor.
They are also known as "blank cheque companies" as the only function of the company is to own and manage the funds raised by it.
Reportedly, renewable energy major ReNew Power and food tech firm Swiggy are also looking for listings in the US market via the SPAC route. In 2015, Silver Eagle Acquisition acquired a 30 percent stake in Videocon d2h for around $200 million.
Mytrah Energy is eyeing the SPAC route for a listing after its $750-million equity deal with private equity firm KKR fell through, the Mint report added.
“Indian renewable energy firms are exploring the SPAC option, given that the Indian IPO plans didn’t materialise and US listings are offering higher valuations. While earlier, there was an appetite for tech firms to be listed through the SPAC route, that appetite is now growing for infrastructure firms," said one of the two people cited above.
Mytrah Energy claimed to have built over 1800 MW of operational assets in the renewable energy sector. It further claimed to be the largest wind data bank in India and the only independent power producer having a pan-India presence of over 240 wind masts.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
