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SPAC process the best way to list at the moment: ReNew Power's Sumant Sinha

business | Feb 25, 2021 4:58 PM IST

SPAC process the best way to list at the moment: ReNew Power's Sumant Sinha

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India's first US listing through SPAC or Special Purpose Acquisition Company in many years is here as ReNew Power raises over a billion dollars in the US market. Sumant Sinha, CMD at ReNew Power discussed the developments.

India's first US listing through SPAC or Special Purpose Acquisition Company in many years is here as ReNew Power raises over a billion dollars in the US market. Sumant Sinha, CMD at ReNew Power discussed the developments.

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“We are a company that is in a capital intensive sector, we had raised a tonne of private capital in the past. In the natural evolution of our company’s history, we needed to get a listing done at some point. So we were looking at the right market and right time,” he said.
“It seems to be the right time for us now to get a listing and to go public. It seems to us that the most appropriate method to get to the listing outcome that we were looking for was SPAC process. That is why in a fairly short period of time, we went through the whole marketing process, met a bunch of investors and decided there is a lot of interest and we decided to go down this path,” he added.
“USD 4.4 billion is a terrific valuation for us to have got right now, it is reflective of current market conditions, it is reflective of where the company has evolved over the last two-three years,” he said.
“We wanted to enter the market in a way that would generate excitement and interest among foreign investors. Keep in mind that India is a new market for them and therefore there is that bit of hesitancy as well. We wanted to price it in a way that would get a lot of interested people coming in. my view is that just given where the pricing is at, we have priced in a very fair manner,” said Sinha.
A large percent of the company will continue to be owned by existing shareholders of ReNew.
“The SPAC investors will have roughly a 10 percent equity in the company, the PIPE investors will have just under 20 percent equity in the company and the existing investors of ReNew will continue to hold 70 percent of the equity of the company,” he shared.
“We would be looking to close this transaction in Q2 of this year. At which point we will become listed in Nasdaq officially under our new ticker symbol of RNW,” he stated.
For the full management commentary, please watch the video
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