ReNew to retire debt, build M&A warchest with proceeds from planned IPO


ReNew to retire debt, build M&A warchest with proceeds from planned IPO

India’s largest renewable power company, ReNew Power, aims to deploy the funds through a planned initial public offering (IPO) of its equity on acquisition and to diversify into allied sectors.

Borrowing cost had spiked to Rs 8.3 billion during FY17, against Rs 5.3 billion in FY16. As on December 31, total borrowing was Rs 151 billion.

ReNew had filed for an IPO last month and plans to raise Rs 260 billion from the market. Of the net proceeds, it will utilise Rs 19.5 billion for redemption or early redemption of debentures issued by it or by subsidiaries. Last year, it closed a non-convertible debenture issue of Rs 22.35 billion to raise debt for projects.

“We intend to continue our expansion through active evaluation of inorganic (mergers & acquisitions) growth opportunities,” ReNew mentioned in its draft prospectus. Read More

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