Upcoming IPO: Morgan Stanley-backed green energy firm files ₹3,650 crore IPO draft papers

Continuum Green Energy Ltd, a company backed by Morgan Stanley Infrastructure Partners and climate specialist investor Just Climate, has filed its draft papers with market regulator Securities and Exchange Board of India (SEBI) to raise ₹3,650 crore via an IPO.

Continuum Green Energy IPO: Key details

The Continuum Green Energy IPO will be a combination of a fresh issue of shares, amounting to ₹1,250 crore, and an offer-for-sale (OFS) portion, worth ₹2,400 crore, according to the draft papers filed by the company.

The selling shareholder in the OFS is the company’s promoter entity, Continuum Green Energy Holdings Ltd. As of December 9, the promoter entity held 13.79 lakh shares, or a 74% stake, in the company. The company will announce the IPO dates and issue price later.

Continuum Green Energy has appointed Kotak Mahindra Capital, Citi, JM Financial and Ambit Capital as investment banks for the IPO.

The equity shares are proposed to be listed on the BSE and National Stock Exchange of India (NSE).

The company has also announced that the offer includes a reservation of shares for subscription by eligible employees. Under their reserved segment, the company may offer a discount on the issue price to eligible employees bidding for the IPO.

Continuum Green Energy IPO: Use of proceeds

Net proceeds from the fresh issuance portion will be used to repay/prepay, in full or in part, certain outstanding borrowings availed by the company’s subsidiaries, including payment of accrued interest thereon, through investment in such subsidiaries. A portion of the funds will also be used for general corporate purposes.

About Continuum Green Energy

Continuum Green Energy, founded by Arvind Bansal and Vikash Saraf in 2009, is a leading independent power producer. The company has been operating for the last 14 years in identifying, developing, constructing and operating renewable energy projects in India.

Continuum Green Energy is primarily engaged in supplying green power to commercial and industrial consumers. The company’s clients include both the state and central distribution utilities as well as power exchanges.

The company’s largest operating single project is located in Rajkot, Gujarat. It has an operational capacity of 394.30 MWp.

Continuum Green Energy acquired its first 16.5 MW wind project in 2010. Over the years, the company has grown its portfolio to a total operational and under-construction capacity of 3.52 GWp.

Continuum Green Energy’s financials

Continuum Green Energy’s restated consolidated net loss for the fiscal year ended March 2024 widened to ₹598 crore from ₹367 crore in the preceding financial year. However, the company reported a 33% rise in its annual revenue to ₹1,295 crore in FY24.

For the quarter ended June 2024, the company reported a net loss of ₹111.7 crore, while its revenue stood at ₹420.3 crore.