Continuum Green Energy files draft papers with Sebi for Rs 3,650-crore IPO
Continuum Green Energy Ltd, an independent power producer (IPP), has filed initial papers with capital markets regulator Sebi for floating a Rs 3,650 crore initial public offering (IPO).
The proposed IPO is a combination of fresh issue of equity shares worth Rs 1,250 crore and an Offer for sale (OFS) of equity shares worth Rs 2,400 crore by promoter Continuum Green Energy Holdings Ltd, according to the red herring prospectus (DRHP) posted on monday.
Arvind Bansal, Vikash Saraf, Continuum Green Energy Holdings Ltd, Continuum Energy Pte Ltd , Clean Joules Pte Ltd and Starlight Pacific Venture Pte Ltd are the promoters of the company.
Continuum Green Energy may consider raising Rs 250 crore in Pre-IPO placement round. When such placement is completed, the new release size will be reduced.
The company intends to use the proceeds from the new issue to repay or partially repay certain loans taken by its subsidiaries, including accrued interest, by investing Rs 1,100 crore in these subsidiaries.
Additionally, a portion of the profits will be allocated for general corporate purposes. Continuum Green Energy identifies, develops, constructs and operates renewable energy projects in India, with a focus on providing green energy to commercial and industrial (C&I) consumers, in addition to state and central distribution utilities and energy exchanges.
Founded in 2007, Continuum Green Energy owns and operates large wind and co-located/hybrid wind-solar projects in India, with an operating capacity of 2.22 GW and an unbuilt capacity of 1.31 GW.
With a total capacity of 3.52 GW, it has an even distribution of energy sources between wind and solar. In 2024, Continuum Green Energy received a major equity investment from JC Infinity (B) Limited, a subsidiary of the fund advised by Just Climate LLP.
Just Climate LLP was founded by Generation Investment Management LLP, a sustainable investment firm that manages $35 billion in assets. As of June 2024, Continuum Green Energy had PPAs with over 170 C&I customers for green energy.
On the financial side, the company’s income from operations rose 33.45 percent to Rs 1,294 crore in fiscal 2024 from Rs 970 crore in fiscal 2023.
Kotak Mahindra Capital Company, Ambit, Citigroup Global Markets and JM Financial are the leading managers of the books to issue. The shares are proposed to be listed on BSE and NSE.
