Power producer Continuum Green Energy files for Rs 3,650 crore IPO

Indian power producer Continuum Green Energy filed for an initial public offering worth Rs 3,650 crore ($430.26 million) on Monday, as it looks to cash in on the country's growing clean energy needs.

Why it's important

The renewable energy sector is rapidly expanding in India, where most power demand is still met with coal.

The government is aiming to add at least 500 giga watts of clean energy by 2030 to reduce carbon emissions and large power producers are making pledges to expand their green energy capacities.

Companies such as NTPC Green Energy and Waaree Energies have made successful debuts on Indian exchanges amid growing investor bets clean energy will be the buzzword for the near future.

Context

There were a flurry of high profile listings in 2024 such as Hyundai Motor India and SoftBank-backed Swiggy, as the country's markets have remained buoyant.

Before succumbing to a double whammy of foreign fund exodus and dull corporate earnings, India's benchmark Nifty 50 index had hit multiple record highs throughout the year.

About 298 companies listed on the Indian bourses have raised $16.65 billion this year, as per data compiled by S&P Global Market Intelligence - more than double the amount raised in 2023.

By the numbers

Continuum Green Energy will issue fresh shares worth Rs 1,250 crore while existing stakeholders will sell stock worth Rs 2,400 crore, its draft prospectus showed.

The company's annual restated consolidated net losses for the fiscal year ended March 2024 widened year-on-year to Rs 598 crore from Rs 367 crore.

Over the same period, its annual revenue jumped over 33 per cent to Rs 1,295 crore.