Just Climate, Morgan Stanley Infra Partners-backed Continuum Green Energy files for Rs 3,650-crore IPO – EQ
Continuum Green Energy, which is backed by specialist sustainable investor Just Climate and Morgan Stanley Infrastructure Partners, has filed draft papers with the market regulator to raise Rs 3,650 crore via an initial public offer ( IPO), as per exchange filings reviewed by Moneycontrol.
Post the recent listings of NTPC Green Energy and Acme Solar Holdings, Continuum is the third player from the renewable energy segment preparing for a market debut.
The IPO consists of a fresh issue size of Rs 1,250 crore and an OFS ( offer for sale) component of Rs 2,400 crore. Promoter entity Continuum Green Energy Holdings Limited is the selling shareholder as per the draft documents.
Along with general corporate purposes, the net proceeds of the issue will be used for debt repayment of subsidiaries as well as payment of accrued interest through investment in the subsidiaries.
Kotak Mahindra Capital, Citi, JM Financial and Ambit Capital are the investment banks acting on the deal. Law firm Shardul Amarchand Mangaldas is the company counsel.
On August 19, Just Climate announced the investment of $150 million in new equity to support Continuum’s continued deployment of wind-solar-hybrid energy generation and storage projects across India. The clean energy firm’s co-founders had acquired a majority stake from Morgan Stanley earlier in the year.
In the past, strategic players like Norway’s Statkraft, US based Sun Edison (which went bankrupt), ReNew Power, Petronas, Sembcorp and others have explored a stake buy in Continuum Energy, but those discussions did not materialise into a deal.
Founded by Arvind Bansal and Vikash Saraf in 2009, Continuum Green Energy, is an independent power producer with over 14 years of experience in identifying, developing, constructing and operating renewable energy projects in India, with a focus on supplying green power to commercial & industrial (“C&I”) consumers, in addition to state and central distribution utilities and power exchanges.
The firm’s largest operating single project site, the Rajkot project (Gujarat), 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, according to the draft papers.
