ReNew Power has made its Nasdaq debut, becoming the first Indian company to raise over a billion dollars by taking SPAC route for Nasdaq listing.
The renewable energy producer has merged with Nasdaq-listed special purpose acquisition company, RMG Acquisition Corp II.
Sumant Sinha, Chairman & MD of ReNew Power, in an exclusive interview with Shereen Bhan said taking the SPAC option for listing seemed the best route for us.
"We took the decision late last year and at that time SPAC (Special-purpose acquisition company) seemed the best decision for us. It gives us access into a very deep and liquid pool of global investors - both emerging markets as well as ESG investors - which we think is very important for us to tap into and access for future and long-term growth in our sector."
He said the company is fully funded at this point in time to get to 18.5 gigawatts of fully-owned capacity by 2025.
"The company is raising $610 million of net proceeds from this transaction, $700 million of gross proceeds. That funding along with the cash in hand as well as the cash flow generation that we will have over the next few years, will allow us to fund a total of 18.5 gigawatts over the next 3 or 4 years. So, we are fully funded at this point in time from an equity standpoint to get to 18.5 gigawatts of fully-owned capacity by 2025."
Sinha said the company will look at opportunities outside India at some point but at this point, its focus is primarily on the Indian market.
"For the near term, our focus is mostly within India. Having said that, we do have a lot of skills, a lot of economies of scale, a lot of expertise that we now bring. The market for renewable energy is growing everywhere in the world right now, so we will look at opportunities outside India at some point but at this point our focus is primarily on the Indian market because the growth opportunities here are so remarkable. So that is where the bulk of our capital will go in the very near term."
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