ReNew Power, one of India’s leading renewable energy companies is expected to get listed on NASDAQ by end of this month, becoming the second Indian green energy company to do so and the first through the ‘Special purpose acquisition company’ (SPAC) route.
Azure Power was the first Indian green energy company to list on the US stock exchange in 2016.
RMG Acquisition Corp II, the US based blank cheque company which will aid the SPAC listing of ReNew Power, in a statement said, “RMG II will become a wholly-owned subsidiary of ReNew Global, and ReNew Global’s class A shares and warrants are expected to commence trading on the Nasdaq Global Select Market, which has the highest initial listing standards of any exchange in the world, under the symbols “RNW” and “RNWWW”, respectively, on August 24, 2021.”
ReNew Power in February this year had announced that it will list on NASDAQ through a business combination with RMG II. The pro forma consolidated and fully diluted enterprise value is expected to be close to $8 billion. The company in 2018 floated IPO to list in India but the issuance was called off. The company is now taking the ‘Special purpose acquisition company (SPAC)/blank check company’ route to list on NASDAQ.
RMG II held a stakeholders’ voting on August 16 to approve its investment in ReNew Power. The company in its statement on the US Securities Exchange Commission (SEC) said, approximately 88 per cent of the votes cast on the business combination proposal at the Extraordinary General Meeting were in favor of approving the business combination proposal.
The company further said, the business combination is expected to close on August 23, 2021 (subject to the satisfaction or waiver of the other customary closing conditions).
The business combination will be in effect under the newly-incorporated holding company, ReNew Energy Global plc.
The transaction includes a fully committed, upsized $855 million Private Investment in Public Equity’ (PIPE) from investors that include BlackRock, BNP Paribas Energy Transition Fund, Mr. Chamath Palihapitiya, Sylebra Capital, TT International Asset Management Ltd, TT Environmental Solutions Fund and Zimmer Partners, as well as $345 million of gross cash held in trust by RMG, said the company.
ReNew is backed by equity investors such as Goldman Sachs, Tokyo based JERA, Abu Dhabi Investment Authority, Canada Pension Plan Investment Board, and Global Environment Fund. Goldmans Sachs, which was the initial investor in ReNew, is looking to exit with this listing process.
ReNew is looking to be fully funded for its equity requirements till fiscal year 2025 through this listing. ReNew Power is hopeful of tapping international funds and taking advantage of Environmental, Social and Corporate Governance (ESG) investment which is catching pace in the global market.
Speaking with Business Standard in March, Sumant Sinha, Founder-Chairman and CEO, ReNew Power said, “Global markets are very deep and the whole theme of ESG investment has picked up globally. Therefore, we have access to new funds and investors who otherwise would have not been able to invest in the Indian listing.”
In a joint investor call in March, the company said it is expecting its revenues to grow at 30 per cent until 2025. By fiscal year 2022, ReNew is expecting $952 million of revenue, and double it to close to 2 billion by 2025.
ReNew Power has a total installed capacity of 5.4 GW of solar and wind power. It also has 4.6 Gw of renewable power capacity under construction. The company plans to enter into energy storage, power transmission and distribution space as well.
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