Valued at nearly US$11 billion based on its IPO pricing, the firm is raising funds via new shares to invest in its renewable energy unit and repay loans. Its IPO was fully sold last week, driven by strong demand for renewable energy stocks from investors betting on a sharp rise in India’s power consumption.
Retail investors bid at least three times the shares reserved for them, likely encouraged by the huge listing day pops for recent offers. Waaree Energy’s US$514 million offering last month surged 56% on debut, and Premier Energies’s shares gained 87% when they were listed in August.
India has been a global hotspot for dealmaking in recent months with large listings such as Hyundai Motor India and food delivery firm Swiggy. IPOs have been witnessing participation across investor categories.
The strong response for listings comes as foreign funds offload local shares amid pricey valuations, while the indictment of billionaire Gautam Adani by US prosecutors weighs on investor sentiment.
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“This IPO shows that despite the overhang of the Adani controversy and any volatility in the Indian market there continues to be a strong appetite for Indian IPOs,” said Nirgunan Tiruchelvam, an analyst at Aletheia Capital in Singapore.
Initial public offerings by 12 companies in the renewables space have raised more than US$1.2 billion this year in India. Except for Acme Solar Holdings, all issues rallied on their debut.
