Renewable energy firm Juniper rules out immediate IPO plans, says company 'sufficiently funded'

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Delhi-based clean energy firm Juniper Green Energy has no immediate plans to tap the equity market with an initial public offer (IPO) and has instead opted to raise additional funds from existing investors, Chief Executive Officer Naresh Mansukhani told Moneycontrol in an exclusive interview.

He added that the company is well-funded by its existing investors, with total funding expected to approach $450 million soon. The independent renewable power producer operates solar, wind and hybrid power projects. The company has 2.5 Gigawatts (GW) of projects pipeline under construction which is expected to be competed by 2026.

"Our investors started this platform with a commitment of $200 million as equity and then as we grew, the commitment increased to $350 million. They have increased it by another $100 million. So, we are sufficiently funded for next two years," said Mansukhani.

The company is backed by Singapore-based investment firm AT Capital and Geneva-based energy and commodities trader Vitol. He expects the investors to raise funding in future based on Juniper's growth trajectory.

In May this year, Moneycontrol had reported citing sources that Juniper has initiated talks with investment banks to evaluate an initial public offering (IPO), which could see the company raise as much as $200-250 million or more. Mansukhani said, "There are no immediate plans to go public" and reinforced that the company is sufficiently funded with the new set of investments from existing investors.

Power Plans

In May, the company signed power purchase agreement (PPA) with state-owned Satluj Jal Vidyut Nigam (SJVN, securing a 320 mega watts (MW) firm and dispatchable renewable energy (FDRE) contract. About 76 percent of company's portfolio is in hybrid and FDRE projects.

The company has a portfolio of 1 gigawatts of operating renewable energy capacity, and development pipeline of more than 5 GW of solar, wind and hybrid projects, according to its website. Asked about the rising delays in securing power purchase agreements (PPAs) for renewable power, Mansukhani noted, "There's a good backlog now, we have seen projects built more than an year ago don't have PPAs signed yet."

Approximately 2.5 GW of projects, which the company completed three to five months ago, are yet to sign PPAs with power distribution companies (discoms). Mansukhani said that the company has adhered to strict criteria in selecting projects that offer clear commercial benefits and has avoided participating in bids that do not meet their standards.

According to a Mint report, about 30 GW Of renewable power has failed to attract buyers amid lack of uniform tariffs and better grid connectivity. And, Mansukhani said that buyers still prefer renewable power to be below Rs 3 and that there is psychological barrier that dictates anything above this is expensive.

The challenges for securing PPAs come even as the Centre aims to tender 50 GW of green power projects every year till FY28 to support India's ambitions to achieve 500 GW renewable energy by 2030.