Sembcorp to inject fresh equity into India renewables business

Sembcorp dragon boat team at DBS Marina Regatta on 2 June 2019.Sembcorp dragon boat team at DBS Marina Regatta on 2 June 2019.

Sembcorp Industries plans to subscribe to additional shares in its India energy arm, Sembcorp Energy India Ltd., or SEIL, to support the growth of the renewable energy business on the subcontinent, the Singapore-listed company said in a fling to SGX Monday.

Once the equity injection is complete, Sembcorp Industries will update the market on its change of shareholding in SEIL, the filing said.

SEIL’s draft red herring prospectus (DRHP) — or an IPO prospectus which doesn’t include details on the price or number of shares being offered — filed with the Securities Exchange Board of India has been withdrawn due to the upcoming change in the energy company’s capital structure, Sembcorp said.

SEIL plans to refile the DRHP “at an appropriate time this year,” after considering the market conditions, Sembcorp said.

SEIL has a wind and solar power portfolio of more than 1,700 megawatts, including 550 megawatts under development, Sembcorp said.

Last year, SEIL delivered a wind farm secured in India’s nationwide wind-power tenders, completing the 250 megawatt Solar Energy Corp. of India I, or SECI, project ahead of schedule, Sembcorp said.

SEIL is currently developing two additional wind projects SECI 2 and SECI 3, which were also obtained in nationwide tenders, the filing said.

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