Continuum Green Energy files draft papers with Sebi for Rs 3,650-crore IPO

Continuum Green Energy Ltd, an independent power producer (IPP), has filed preliminary papers with capital markets regulator Sebi for floating a Rs 3,650 crore initial public offering (IPO).

The proposed IPO is a combination of a fresh issue of equity shares valued Rs 1,250 crore and an Offer for Sale (OFS) of equity shares worth Rs 2,400 crore by promoter Continuum Green Energy Holdings Ltd, according to the draft red herring prospectus (DRHP) filed on Monday.

Arvind Bansal, Vikash Saraf, Continuum Green Energy Holdings Ltd, Continuum Energy Pte Ltd , Clean Joules Pte Ltd and Starlight Pacific Venture Pte Ltd are the promoters of the company.

Continuum Green Energy may consider raising Rs 250 crore in a Pre-IPO placement round. If such placement is completed, the fresh issue size will be reduced.

The company intends to utilize the funds from the fresh issue to repay or partially repay certain loans taken by its subsidiaries, including accrued interest, by investing Rs 1,100 crore in these subsidiaries.

Additionally, a portion of the proceeds will be allocated for general corporate purposes. Continuum Green Energy identifies, develops, constructs and operates renewable energy projects in India, with a focus on supplying green power to commercial & industrial (C&I) consumers, in addition to state and central distribution utilities and power exchanges.

Founded in 2007,Continuum Green Energy owns and operates large wind projects and large wind-solar co-located/hybrid projects in India, with total operational capacity of 2.22 GW and under-construction capacity of 1.31 GW.

Of the entire 3.52 GW capacity, it has a balanced split of energy source between wind and solar. In 2024, Continuum Green Energy secured a primary equity investment from JC Infinity (B) Limited, an affiliate of a fund advised by Just Climate LLP.

Just Climate LLP was founded by Generation Investment Management LLP, a sustainable investment firm managing assets worth $35 billion. As of June 2024, Continuum Green Energy had PPAs with more than 170 C&I consumers for green energy supply.

On the financial front, the company's revenue from operations increased 33.45 per cent to Rs 1,294 crore in fiscal 2024 from Rs 970 crore in fiscal 2023.

Kotak Mahindra Capital Company, Ambit, Citigroup Global Markets and JM Financial are the book-running lead managers to issue. The equity shares are proposed to be listed on BSE and NSE.