SAEL Industries, a renewable energy provider, filed draft documents for a stock market offering worth Rs 45.75 billion ($520.51 million).

The solar and biomass operator announced that its initial public offering (IPO) will include a new issue of shares for up to 37.5 billion rupees, as well as an offer for sale of shares worth Rs 8.25 billion rupees by Norwegian state-owned firm Norfund, one of its significant shareholders.

Key Highlights

• SAEL Industries plans an approximately $521 million IPO combining fresh shares and existing investor share sale. 
• Proceeds will fund expansion of its solar & agri-waste-to-energy capacities across India ahead of listing.

The proceeds from the IPO will be used to fund investments in the company's units, SAEL Solar P5 and SAEL Solar P4, as well as to repay or prepay certain outstanding borrowings, including accumulated interest and prepayment penalties.

SAEL Industries, India's largest agri waste-to-energy producer based on operational capacity, competes with Adani Green Energy, ACME Solar Holdings, and NTPC Green Energy. However, the company continues to be the lowest among its listed peers in terms of sales for the fiscal year ending March 2025.

As of September 30, the company's total contractual and granted capacity for renewable energy projects was 5,765.70 megawatts, which included 5,600.80 MW of solar and 164.90 MW of agro waste-to-energy capacities spread throughout ten Indian states and one union territory.

The lead book-running managers for the IPO were Kotak Mahindra Capital, JM Financial, Ambit, and ICICI Securities.

Last month, Norfund invested $20 million in the company, bringing its total investment to $130 million.

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The Norwegian firm made the investment with compulsorily convertible preference shares, which would convert into equity once Sael is listed on Indian marketplaces. The monies will be used for clean energy projects that the corporation has obtained through competitive bidding.