Sumant Sinha, founder and chief executive officer of Goldman Sachs-backed green energy producer ReNew Power Ventures Pvt. Ltd, is in talks to raise up to $100 million in promoter financing to increase his stake in the company ahead of a proposed share sale, said two people aware of the development.
“Sumant Sinha’s stake in the company is around 6-7 odd percent currently. With the company looking to go public in the near future, a low promoter stake could result in investors having to offer part of their stake for the mandatory three-year lock-in period specified by Securities and Exchange Board of India ICDR (issue of capital and disclosure requirements) norms,” said one of the two people cited above, requesting anonymity as the talks are private.
The Sebi ICDR norms specify that at least 20% of the post-issue capital of the promoters has to be locked in mandatorily for three years, the first person said, adding that investors in the company, especially Goldman Sachs, want the least possible amount of stake to be subject to this—hence the efforts to increase Sinha’s stake in the company. Read More…
Credit By : Livemint.com
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