The Securities and Exchange Board of India on Monday approved the initial public offering of Continuum Green Energy Ltd. The total size of the IPO is Rs 3,650 crore.
The market regulator issued its observation letter, which means a formal go ahead.
Continuum Green Energy filed its draft papers for the public issue in December last year. The IPO will include a fresh issue of Rs 1,250 crore and an offer-for-sale of Rs 2,400 crore by the promoter entity Continuum Green Energy Holdings Ltd.
As of Dec. 9, the selling shareholder held 13.79 lakh shares, or 74% stake in the company.
Shares of the company will be listed on NSE and BSE. The issue's book running lead managers are Kotak Mahindra Capital Co., Ambit Pvt., Citigroup Global Markets India, and JM Financial Ltd.
Continuum Green Energy is an independent power producer and focuses on supplying green power to commercial and industrial consumers, in addition to state and central distribution utilities and power exchanges. "Our largest operating single project site, the Rajkot project (Gujarat), has an operational capacity of 394.30 MWp," the company had stated in its DRHP.
Proceeds from the fresh issue will be used for repayment or prepayment of certain outstanding borrowings of its subsidiaries.
"We intend to continue to focus on C&I consumers and by structuring the tariffs in our C&I PPAs as linked to the variable tariffs charged by distribution utilities to C&I consumers, we plan to take advantage of the increasing commercial and industrial tariff," the company said.
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