Mytrah Energy may delist from London AIM before India IPO
Mumbai: Renewable energy firm Mytrah Energy (India) Pvt. Ltd, backed by the Piramal Group, is likely to delist its holding company Mytrah Energy Ltd from the Alternative Investment Market (AIM) in London before moving ahead with a planned domestic initial public offering (IPO), two people aware of the development said.
Mytrah Energy listed on AIM in October 2010 after raising $80 million from institutional investors. In September 2016, Mint reported that Mytra Energy India had appointed a syndicate of banks to advise it on a domestic initial public offering (IPO) that could raise around $250-300 million.
“The Mytrah management is contemplating delisting the holding company from the London AIM market before going ahead with the Indian IPO. The London-listed entity could result in difficulties in appropriately pricing the Indian IPO given the valuation difference between the two entities,” said one of the two people cited above, requesting anonymity as he is not authorized to speak with the media.
As of the market close on 23 October, Mytrah Energy had a market capitalization of just £43.16 million ($56.76 million).
According to the second person cited earlier, who also declined to be named, while the delisting of the London-listed entity is being considered, the Mytrah management is yet to take a final call. “The delisting will involve a significant cost and they are yet to take a final call on whether they would like to go ahead with it,” this person added.
Emails sent last week to Mytrah and to Shirish Navlekar, joint managing director and chief financial officer at the company, did not elicit any response.
Mytrah has built a renewable energy portfolio of 2,000 megawatts (MW) of operational and under-development power capacity. These assets are spread across 15 wind farms in nine states—Rajasthan, Gujarat, Madhya Pradesh, Maharashtra, Andhra Pradesh, Telangana, Karnataka, Punjab and Tamil Nadu.
Mytrah is currently executing 600MW of solar and wind projects in Telangana, Karnataka and Punjab. It was recently awarded wind capacity of 250MW in Tamil Nadu in an auction.
In September, the company raised $277 million (about Rs1,800 crore) from the Piramal Group. The proceeds were used to buy out the existing investors of the company such as IDFC Alternatives Ltd, AION Capital, Merrill Lynch and Goldman Sachs, as well as to fund the growth of the company.
Mytrah is not the only Indian renewable energy company that plans to go public.
In September, another renewable energy firm, ACME Solar Holdings Pvt. Ltd, filed a share sale document with the Securities and Exchange Board of India (Sebi) to raise Rs2,200 crore through an IPO.
The company plans to utilize the IPO proceeds to repay debt and to finance the company’s 200MW solar power project in Rajasthan. The company is also considering a pre-IPO placement of up to Rs500 crore.
ACME Solar has a portfolio of operational projects of 874MW across 33 projects and under-construction projects with a capacity of 940 MW across 14 projects in states such as Uttarakhand, Gujarat, Chhattisgarh, Telangana, Karnataka, Punjab, Bihar, Uttar Pradesh, Odisha, Madhya Pradesh, Rajasthan and Andhra Pradesh.
In April, The Economic Times reported that Renew Power Ventures Pvt. Ltd was planning a $600 million initial share sale.
Piramal’s financial services business is also a lender to ACME Solar and to the promoters of Renew Power Ventures.