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How Sembcorp Is Aiming To Boost Its BESS, RTC and FDRE Pipeline With New IPO Plan?
After the entry of several renewable energy companies into the Indian stock market, more renewable Independent Power Producers (IPPs) are now looking to jump onto the bandwagon. The latest entrant is Singapore-based Sembcorp’s Indian renewable energy arm, Sembcorp Green Infra. The company has proposed a ₹3,750-crore IPO at a time when it is expanding beyond conventional wind and solar projects into battery energy storage systems (BESS), round-the-clock (RTC) power, and firm and dispatchable renewable energy (FDRE) projects. Sembcorp Green Infra is preparing to tap the public markets with a ₹3,750-crore initial public offering, but the company's proposed use of the proceeds suggests that the issue is as much about strengthening its balance sheet as it is about supporting its next phase of growth. The proposed issue is entirely a fresh issue of equity shares. There is no offer-for-sale component. Of the proceeds, ₹3,000 crore is proposed to be used for repayment or prepayment of certain borrowings of the company and its subsidiaries, with the balance earmarked for general corporate purposes. The draft red herring prospectus (DRHP) was filed with SEBI in September. In the latest move, SEBI has now asked the company to furnish more details towards the issue, a...