Continuum Green receives SEBI approval to launch ₹3,650 crore IPO

Continuum Green Energy Ltd, an independent power producer, has received SEBI's go-ahead to float a ₹3,650 crore initial public offering (IPO), an update with the markets regulator showed on Monday. The proposed IPO is a combination of a fresh issue of equity shares valued ₹1,250 crore and an offer-for-sale of shares worth ₹2,400 crore by promoter Continuum Green Energy Holdings Ltd, according to the draft red herring prospectus (DRHP).

The company, which filed its draft papers with SEBI in December, obtained its observations letter on April 15, the update showed. In SEBI's parlance, obtaining observation letter by listed companies means its go-ahead to launch the public issue.

As per the draft papers, the company intends to utilize the funds from the fresh issue to repay or partially repay certain loans taken by its subsidiaries, including accrued interest, by investing ₹1,100 crore in these subsidiaries. Additionally, a portion of the proceeds will be allocated for general corporate purposes.

Continuum Green identifies, develops, constructs and operates renewable energy projects in India, with a focus on supplying green power to commercial & industrial (C&I) consumers, in addition to state and central distribution utilities and power exchanges.

Founded in 2007, Continuum Green Energy owns and operates large wind projects and large wind-solar co-located/hybrid projects in India, with a total operational capacity of 2.22 GWp and under-construction capacity of 1.31 GWp. Of the entire 3.52 GWp capacity, it has a balanced split of energy source between wind and solar capacity.

In 2024, Continuum Green secured a primary equity investment from JC Infinity (B) Limited, an affiliate of a fund advised by Just Climate LLP. Just Climate LLP was founded by Generation Investment Management LLP, a sustainable investment firm managing assets worth USD 35 billion.

As of June 2024, Continuum Green had PPAs with more than 170 C&I consumers for green energy supply.

On the financial front, the company's revenue from operations increased by 33.45% to ₹1,294 crore in fiscal 2024 from ₹970 crore in fiscal 2023.

Kotak Mahindra Capital Company, Ambit, Citigroup Global Markets and JM Financial are the book-running lead managers to the issue. The equity shares are proposed to be listed on BSE and NSE.