NEW DELHI: India’s largest clean energy producer, Re-New Power, has picked Goldman Sachs, Kotak and JM FinancialBSE 2.13 % to advise on a planned $700 million (Rs 4,480 crore) initial public offering of shares that could see some of its early investors such as Goldman Sachs and Abu Dhabi Investment Authority make a partial exit, people briefed on the matter said.
The three investment banks were appointed after almost a dozen banks made presentations to pitch their credentials to manage the planned share sale, the people said. More banks may be added to the group that eventually manages the sale, they said.
Spokespersons for JM Financial and Kotak declined to comment, while Goldman Sachs and ReNew did not respond to queries until press time Wednesday.
ReNew Power’s founder and chief executive, Sumant Sinha, told ET in April that the company could launch its IPO before the second half of the next calendar year.
Sinha had cited the company’s pipeline of 3,200 MW of solar and wind power generation projects as a key factor that could induce investor interest.
ReNew Power may look to beef up its portfolio of assets before the launch of the IPO, according to various sources. It is said to be in talks with at least two other renewable energy companies for an acquisition, multiple sources said, though they cautioned that a deal may not necessarily conclude.
ET had first reported in its edition dated July 19 that Re-New Power was exploring a purchase of renewable company Orange’s portfolio for $900 million.
It has also been in discussions to acquire Actis private equity-owned renewable energy platform Ostro, sources said. The enterprise value of Ostro’s assets could near $2 billion, these people said. Chennai-based Orient Green Power is the only listed renewable energy company in India.
Azure Power, a solar energy producer, is listed on the New York Stock Exchange while Mytrah Energy is listed on the Alternative Investment Market (AIM) of the London Stock Exchange. Greenko was earlier listed on AIM.
ReNew Power has till date raised $850 million in equity from investors since it was founded in 2011.
It raised $200 million from Japan’s JERA, a joint venture between Tokyo Electric Co and Chubu Electric Co, last year. That funding round had valued the company at $2 billion.