Green Power Pangs

In end September 2018, there was a strong market buzz that the US based investment firm Macquarie was about to acquire some equity in the country's largest renewable energy company, ReNew Power, buying from Goldman Sachs, which already holds a sizeable stake in it. ReNew, with around 6,000 MW of solar and wind projects, backed by several marquee investors, apart from Goldman Sachs the Canada Pension Plan Investment Board (CPPIB), the Abu Dhabi Investment Authority (ADIA), the US based Global Environment Fund (GEF) and Japan's JERA, and more seemed an excellent choice. It was also then set to launch an initial public offering (IPO) of Rs 2,600 crore, following which its valuation was expected to rise. But neither the investment nor the IPO happened.

Another leading solar energy player, ACME Solar, with 5,500 MW of projects, has also deferred the IPO it had been planning since last year for raising Rs 2,200 crore. A third heavyweight, Azure Solar, with around 3,000 MW of projects in different stages, and the only Indian renewable energy company listed on the New York Stock Exchange, has seen its share fall 25 per cent to $12.50 when it listed two years ago.

The situation is a direct result of recent developments in the renewable sector and the aggressive bids (in some cases beyond the wherewithal) by some players. Though Sumant Sinha, Chairman and Managing Director, ReNew Power, claimed the Macquarie story