ReNew Power Looking To Raise $1 Billion From NASDAQ Listing

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Proceeds from the IPO will be used to fund its expansion plans, a target of 18.5 GW of wind and solar operational capacity by 2025

Renewable energy independent power producer (IPP) ReNew Power will raise about $1 billion from its public Nasdaq listing, marking the first instance of an Indian renewable company getting listed in the US market.

Proceeds from the IPO will be used to fund its expansion plans, a target of 18.5 GW of wind and solar operational capacity by 2025. Currently ReNew has about 6 GW of operational capacity and 4.5 GW under construction.

“Of the $1 billion we are raising, primary gross proceeds will be $700 million and the remaining will be from secondary sale of existing shareholders. About 25-30 new global investors are likely to onboard through listing,” Sumant Sinha, Chairman and Managing Director of ReNew Power told Business Today.

“Most of the 4.5 MW (megawatt) under construction will be ready in the next 18 months, assume by March 31st of 2023. Beyond that, we can execute another 8 GW (gigawatt) over the next 2-3 years,” said Sumant Sinha.

“We are also going to get good cash flows from the operational projects. With the cash we are having and that we are going to generate plus proceeds from going public will help us to set up an operational capacity of 18.5 GW by 2025,” Sinha added.

He said the company is likely to have an EBITDA (earnings before interest, taxes, depreciation, and amortization) of $800 million in the current financial year, on the back of about 7 GW of commissioned capacity. Since India’s power market is opening up, ReNew is also looking at opportunities in battery storage, grid management solutions, solar panels and module manufacturing.

He said though the company will be listed in the US, its focus business market will continue to be India. The listing will help Renew become a professionally run organisation with independent directors from across the globe, instead of a shareholder driven company.

Currently Goldman Sachs, CPP Investments, Abu Dhabi Investment Authority, GEF SACEF and JERA are the major investors in ReNew Power. Post listing, Goldman Sachs’ shareholding will go down from 49 percent to about 33 percent.

Shareholding of CPP Investments and Abu Dhabi Investment Authority, which were holding about 17 percent each, will dilute to about 13 percent. The new institutional investors onboarding will own about 20 percent of the company.

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