Continuum Green Energy files draft papers with SEBI for ₹3,650 crore IPO

Continuum Green Energy Limited has filed its draft red herring prospectus (DRHP) with the capital market regulator, Securities and Exchange Board of India (SEBI), for an initial public offering (IPO).

Continuum Green Energy is an independent power producer dedicated to identifying, developing, constructing, and operating renewable energy projects in India. The company primarily focuses on supplying green power to commercial and industrial consumers, along with state and central distribution utilities and power exchanges.

Founded in 2007, Continuum Green Energy has established a significant presence in the renewable energy sector, operating large wind projects as well as hybrid projects that combine wind and solar energy. Currently, the company has an operational capacity of 2.22 GWp and an additional 1.31 GWp under construction, resulting in a total capacity of 3.52 GWp, evenly split between wind and solar sources.

The company is supported by a team of promoters, including Arvind Bansal, Vikash Saraf, Continuum Green Energy Holdings, Continuum Energy Pte, Clean Joules Pte, and Starlight Pacific Venture Pte.

As per draft red herring prospectus (DRHP), the company's listed peers Adani Green Energy Ltd (with a P/E of 214.19x), ReNew Energy Global PLC (with a P/E of 52.16x), NTPC Green Energy Ltd (with a P/E of 176.99x), and ACME Solar Holdings Ltd (with a P/E of 20.76x).

IPO details

The IPO includes a fresh issue of equity shares totaling up to ₹1,250 crore, along with an offer for sale (OFS) of equity shares amounting to up to ₹2,400 crore by Continuum Green Energy Holdings Limited, the promoter and selling shareholder.

Continuum Green Enterprises plans to use the net proceeds from the fresh issue to repay or prepay, in whole or in part, certain outstanding borrowings taken by its subsidiaries. This includes the payment of accrued interest on these borrowings, with an investment of ₹1,100 crores in the subsidiaries. Additionally, funds will be allocated for general corporate purposes.

The company may conduct a Pre-IPO placement of specified securities, raising up to ₹250 crores, before filing the Red Herring Prospectus (RHP) with the Registrar of Companies (RoC). If the Pre-IPO placement is completed, the size of the fresh issue will be reduced by the amount raised through this placement.

The book-running lead managers for the offer are Kotak Mahindra Capital Company Ltd, Ambit Private Ltd, Citigroup Global Markets India Private Ltd, and JM Financial Ltd.

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