(Feb 20): Temasek Holdings Pte Ltd and Abu Dhabi Investment Authority (ADIA) are planning to invest in the initial public offering (IPO) of Clean Max Enviro Energy Solutions Ltd, according to people familiar with the matter, giving support to a listing that will test market sentiment in India.
The sovereign wealth funds are poised to participate as cornerstone investors — which get guaranteed allocation in a deal in exchange for holding the shares for a period of time — alongside domestic mutual funds and insurers including HDFC Asset Management Co Ltd and SBI Life Insurance Co, the people said, asking not to be identified as the information is private. Discussions are ongoing and details of the anchor allocations could still change, they said.
The Mumbai-based company’s plan to raise about 31 billion rupees (US$341 million or $430 million) is another test of the Indian IPO market, which is struggling to gather momentum after two consecutive years that set records for proceeds. The offering will also be closely watched for signs of sustained demand after months of underperformance in India’s renewable energy stocks, with dozens of other companies weighing whether to list.
Clean Max, a renewable energy company backed by Brookfield Corp, set aside shares worth about 9.3 billion rupees for anchor investors before the subscription period, according to the prospectus. Investment bankers are likely to allocate the shares at 1,053 rupees apiece, at the top of the marketed price range, the people said. The company raised 15 billion rupees in a pre-IPO placement last week.
Representatives for Clean Max, Temasek, ADIA, HDFC AMC and SBI Life didn’t respond to requests for comment.
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