Temasek-backed Sembcorp Green Infra gets SEBI nod for Rs 3 750 cr IPO

New Delhi, Nov 13 (PTI) Sembcorp Green Infra Ltd, the Indian renewable energy arm of Singapore-based Sembcorp Industries and a Temasek portfolio company, has received final approval from the Securities and Exchange Board of India (SEBI) for its proposed Rs 3,750 crore initial public offering, paving the way for the renewable energy producer to tap the domestic capital market.

     The proposed IPO will comprise an entirely fresh issue of shares, with no offer-for-sale component, meaning the proceeds will accrue to the company rather than existing shareholders.

     SEBI on its website showed the regulator issued its final observations to Sembcorp Green Infra on November 13.

     SEBI's final observations mean that the market regulator has completed its examination of the company's draft IPO documents and has raised no further observations that would prevent it from proceeding with the issue, subject to applicable rules and disclosures. It is a key regulatory clearance that allows the company to move ahead with the IPO process, including finalising its offer documents and preparing for the launch.

     Sembcorp Green Infra plans to use the proceeds primarily to repay or prepay, in full or in part, outstanding borrowings of itself and certain subsidiaries identified in the offer documents. The fundraise is aimed at strengthening its balance sheet as it expands a portfolio spanning wind, solar, hybrid and energy-storage-linked projects.

     The company, which has been present in India's renewable energy market since 2005, is among the country's 10 largest renewable independent power producers by operational capacity, as of March 31, 2026.

     The company had an aggregate portfolio of about 7.64 GW/GWh as of that date, comprising 3.60 GW of operational capacity and 4.04 GW/GWh under construction. Its portfolio spans 105 projects across 13 states and union territories, including wind, solar, hybrid, battery energy storage, round-the-clock and firm and dispatchable renewable energy projects.

     A significant part of its expansion pipeline is in more complex renewable energy configurations. About 3.58 GW of its under-construction portfolio comprises such projects, while the company reported a 77.32 per cent bid success ratio in complex renewable energy projects during FY24-FY26.

     The company's financial performance has also strengthened. Revenue from operations rose to Rs 2,652.50 crore in FY26 from Rs 2,318.29 crore in the previous year, while EBITDA increased to Rs 2,098.73 crore from Rs 1,837.12 crore. Net profit climbed to Rs 371.08 crore from Rs 298.83 crore.

     The proposed IPO comes as India's renewable energy industry enters a phase requiring increasingly large investments not only in generation capacity but also in energy storage and grid integration.

     India had approximately 533 GW of installed power generation capacity as of March 2026, with renewable energy, including large hydro, accounting for around 52 per cent of the total. The country added a record 55.29 GW of non-fossil fuel capacity during FY26, according to government data.

     The next phase of expansion is expected to rely increasingly on hybrid projects combining solar and wind generation with battery storage, as well as round-the-clock and firm dispatchable renewable energy solutions. Such configurations are designed to address the intermittency of solar and wind power and provide more predictable electricity supplies.

     Industry projections indicate that India could add approximately 264-274 GW of renewable energy capacity by FY31, while demand for energy storage solutions is expected to rise sharply. CRISIL Intelligence estimates that 50-55 GW of energy storage capacity could be added by then.

     The shift towards more complex projects is also changing the economics of the sector. Developers need greater access to capital to finance projects, manage construction costs and meet delivery commitments, while also investing in storage and associated infrastructure.

     Analysts said Sembcorp's proposed debt repayment through the IPO proceeds is therefore significant: rather than financing an acquisition or providing an exit to existing shareholders, the issue is designed to strengthen the company's balance sheet and provide greater financial flexibility for its next phase of expansion.

     Sembcorp Green Infra is wholly owned by Sembcorp Industries, the Singapore-headquartered energy and urban solutions group and a portfolio company of Singapore state investor Temasek.

     Axis Capital, Citigroup Global Markets India, HSBC Securities and Capital Markets India, ICICI Securities, Kotak Mahindra Capital, CLSA India and IIFL Capital Services are the book-running lead managers to the issue.

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