Sembcorp Green Infra Set to Launch $393 Million IPO in India

Key Takeaways

Sembcorp Green Infra plans to raise up to ₹37.5 billion ($393.04 million) in its IPO in Mumbai.
All shares offered will be new, with no existing shares sold by Sembcorp Industries.
Approximately ₹30 billion of the funds raised will be used to repay company debt.

IPO Filing Details

Sembcorp Green Infra, the Indian renewable energy subsidiary of Temasek-backed Sembcorp Industries, has officially filed for an initial public offering (IPO) in Mumbai, aiming to raise ₹37.5 billion (approximately $393.04 million). The draft IPO papers, dated Wednesday, indicate that the offering will consist solely of new shares. Notably, Sembcorp Industries, which fully owns Sembcorp Green Infra, will not be selling any of its shares in this public offering.

This marks Sembcorp’s second attempt to take its Indian energy business public. In 2018, the company, previously known as Sembcorp Energy India, initially filed draft papers but later withdrew due to a strategy shift involving new equity injection into the business. The recent decision to pursue an IPO reflects a renewed commitment to expanding its presence in the renewable energy sector.

A significant portion of the proceeds, around ₹30 billion, is earmarked for repaying existing debts. This financial strategy is aimed at strengthening the company’s balance sheet as it seeks to capitalize on the growing demand for renewable energy in India. The IPO is being managed by a consortium of financial institutions, including Axis Capital, Citigroup, CLSA, HSBC, ICICI Securities, IIFL Capital Services, and Kotak Mahindra Capital.

As the renewable energy sector in India continues to expand, Sembcorp aims to position itself as a major player, leveraging this IPO to support its growth objectives and enhance its financial health. The move is anticipated to enhance investor confidence in the company’s long-term prospects while contributing to the overall development of the clean energy landscape in India.

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