ReNew Power Raises $300 Million through Rights Issue to Develop Capacity

ReNew Power has announced that it has raised $300 million (Rs 2,100 crore) in equity funding from present investors Goldman Sachs, CPPIB and Abu Dhabi Investment Authority through a rights issue.

The exercise, though, did not see contribution from Japanese investor JERA and the Global Environment Fund, both existing investors of ReNew Power. “Each of the large shareholders has infused $100 million each. The funds will help us add capacity,” ReNew Power chairman Sumant Sinha believed.

The funds were upturned through a zero coupon, compulsorily convertible instrument that will translate at a time of a liquidity event or after three years, whichever is earlier.

With this round, ReNew would have traversed a billion dollars in equity raise from its institutional investors in various tranches. The last tranche a year ago from CPPIB was at $2.6 billion. Analysts expect a $3 billion equity valuation now. 

 “We will continue to fund our pipeline with the internal cashflows and also with the new round of capital,” held Sinha. “For the existing portfolio, we are open to monetising either in part or full. It is a global practice but we are yet to firm up the granular details.”