ReNew Power: Listing through SPAC

Abstract

ReNew Power, one of India’s leading renewable energy company, shelved its plan for an initial public offering (IPO) in 2019. Two years later, in August 2021, ReNew Power got itself listed in the USA through a merger with RMG II, a special purpose acquisition company. ReNew Power’s Chairman was looking for listing mainly for two reasons- (a) to offer its existing investors an opportunity to divest a part of their holdings; and (b) to fund future growth. The company’s past attempts to raise money through domestic IPO in 2018 and through a strategic investor in 2020 had failed. So, it was in a hurry to raise funds and at the same time cautious whether the SPAC route would fetch a fair price for the company.