RUSH FOR RE­NEW­ABLE EN­ERGY IPOs

Business Today - - THE BUZZ - - P. B. Jayaku­mar

THE BUR­GEON­ING re­new­able en­ergy in­dus­try is likely to wit­ness an un­prece­dented IPO rush in the near fu­ture to tap In­dia’s cap­i­tal mar­kets. About six lead­ing com­pa­nies in the sec­tor are re­port­edly pre­par­ing for ini­tial pub­lic of­fer­ings.

Former Su­zlon CEO Su­mant Sinha-led Re­New Power, Adani En­ter­prises’ sub­sidiary Adani Green En­ergy, Sem­b­corp In­dia, a unit of Sin­ga­pore’s Sem­b­corp In­dus­tries, My­trah En­ergy, the State-run In­dian Re­new­able En­ergy De­vel­op­ment Agency (IREDA), and ACME So­lar are some of the com­pa­nies said to be lin­ing up to tap the cap­i­tal mar­kets. The idea is to cre­ate a war chest for ac­quir­ing up­com­ing op­por­tu­ni­ties in re­new­able en­ergy auc­tions, given gov­ern­ment in­cen­tives for re­new­able en­ergy pro­jects.

But many of these fundrais­ing plans may be se­verely chal­lenged con­sid­er­ing the cur­rent damp mar­ket con­di­tions, lack of clar­ity on long-term poli­cies and in­dus­try out­look, and over­val­u­a­tion is­sues.

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