Mumbai: Sembcorp Energy India Ltd, the Indian arm of Singapore-based utility group Sembcorp Industries Ltd, on Friday filed the draft red-herring prospectus (DRHP) for its initial public offering (IPO).
The share sale will comprise a fresh issue worth Rs4,095 crore, while the promoters Sembcorp Utilities Pte. Ltd and Gayatri Energy Ventures Pvt. Ltd will offload 146.77 million shares in an offer for sale, according to the share sale document.
On 18 January, Mint reported that Sembcorp Industries is gearing up to file for an IPO of its Indian arm which could see the company raise around $500-600 million.
Out of the total proceeds from the sale of new shares, Rs3,159 crore will be utilized to repay debt availed by the company, while the remaining will be used for general corporate purposes.
Sembcorp Energy India operates thermal and renewable power assets in India and is a subsidiary of Sembcorp Industries, which is listed on the Singapore exchange.
Sembcorp Industries made its first power sector investment in India in 2010 when it acquired a stake in Gayatri Energy Ventures’s Thermal Powertech Corp. India, a thermal power plant.
In 2015, Sembcorp Industries acquired a 60% stake in IDFC Alternatives Ltd-backed renewable energy firm Green Infra Ltd for Singapore $227 million.
In September last year, Sembcorp Industries announced the acquisition of IDFC’s remaining 28% stake in Sembcorp Green Infra for Rs1,410 crore (around Singapore $301 million) to become its sole owner.
As of 31 December 2017, Sembcorp Energy India had a total power generation capacity of approximately 4.07 gigawatt (GW) comprising approximately 3.57GW of operating generation capacity and 0.50GW of generating capacity under construction.
According to the DRHP, in fiscal 2017, the company reported a revenue of Rs3,418.49 crore, up 41% compared to the previous year. It reported a loss of Rs43.54 crore in 2016-17 against a loss of Rs119.74 a year ago.
Sembcorp Energy India has hired Axis Capital Ltd, Credit Suisse Securities (India) Pvt. Ltd, CLSA India Pvt. Ltd and SBI Capital Markets Ltd to manage the share sale.livemint