RENEW POWER EYES US LISTING THROUGH SPAC AT $4 BN VALUATION

MUMBAI: Renew Power Pvt. Ltd is planning to list its shares in the US through the fast-emerging SPAC (special purpose acquisition company) route at a valuation of almost $4 billion, two people aware of the development said.

The company, one of India’s largest renewable energy firms, is in talks to merge with RMG Acquisition owned by Nasdaqlisted SPAC Riverside Capital Management, the people cited above said on condition of anonymity. Renew Power had shelved its Indian initial public offering plan in 2019 amid market volatility. As per Securities Exchange Commission rules, while Riverside will hold up to 20% in the newly listed avatar of Renew Power, Goldman Sachs along with CPPIB, ADIA and the company’s founder-cum-chairman Sumant Sinha will hold the rest 80%, one of the two people cited above said.

“The due diligence process for the listing of Renew Power through SPAC has already begun and once completed, it will mark the largest ever listing of an Indian company in the US through SPAC route,” this person said. “In the case of Renew Power, SPAC Riverside is expected to put in $300 million through equity and another $150 million through warrants.”

Emails sent to Riverside and Renew Power remained unanswered, while a Goldman Sachs spokesperson declined to comment. Renew is one of India’s largest renewable energy independent power producers with a capacity of 10.14GW, of which 5.73GW is operational.