The first listing of an Indian renewable energy company on India’s stock exchanges since 2010 saw more than 5 million shares change hands this week as debutant Adani Green Energy’s initial listing value rose 5% before slipping back slightly.
Adani Green Energy was created by spinning off all the renewable power assets of Adani Enterprises into a single package.
The listing on the Bombay Stock Exchange and National Stock Exchange of India was the first of what is expected to be a “wave of initial public offerings in the sector witnessing an investment boom,” Nikkei Asian Review said.
Business rivals ReNew Power, ACME Solar, Sembcorp Energy India, and Mytrah Energy have all signalled that they intend to list with initial public offerings (IPOs).
Adani Green’s move into public trading is the first since India-based wind energy operator Orient Green Power listed eight years ago.
The IPOs are being triggered by a boom in India’s renewable energy industry and the desire by some early investors to cash in their investments, NewsBase Intelligence (NBI) believes.
The Indian federal government is seeking to promote the development of 175,000 MW of renewable energy generating capacity by 2022, but despite rapid growth aided by favourable investment conditions that target is still a long way off.
Adani issued 761 new shares valued at 10 rupees each for every 1,000 shares of 1 rupee each held by Adani Enterprises shareholders.
Adani Green has a portfolio of mostly solar plants with a capacity of 1,920 MW, including one of the world's largest single-location solar power facilities, with 648 MW capacity, in southern Tamil Nadu State.
An IPO by ReNew Power would be much bigger than the Adani listing. ReNew has assets in India of 3,600 MW plus another 2,000 MW under construction, Reuters said.
ReNew could raise up to US$900 million with an IPO, reports have suggested. Its existing shareholders include big investors such as Goldman Sachs and Canada Pension Plan Investment Board.
Indian business website LiveMint said Goldman Sach’s stake is worth up to US$600 million. ReNew made application in May for an IPO but a launch date has not yet been announced.