Sembcorp Industries planning IPO of its India business

Singapore-based power producer Sembcorp Industries Ltd is preparing to list its Indian unit, according to two people aware of the plan.

“It can be either listed here in India or elsewhere,” said one of the people, requesting anonymity. The other person, who also did not want to be named, confirmed the initial public offering (IPO) plan.

The IPO for Sembcorp India, which has thermal and renewable power assets in the country, is being planned at a time when India’s green energy tariffs have hit a record low. In such a scenario, obtaining finance at the lowest cost has become a key to success.

Sembcorp India has contributed to these aggressive bets, with its Sembcorp Green Infra (SGI) unit bidding a then-record low Rs3.46 per kWh wind power tariff in February to win contracts for 250 megawatt (MW). It was also in the fray for 750MW of solar capacity on offer at Rewa in Madhya Pradesh.

“India is an important market for Sembcorp. As previously mentioned, we may in the future consider a listing in India if and when appropriate. We do not have any further updates at this time, but in the event of any material developments, we will as a listed company update the market as necessary,” said a Sembcorp spokesperson in an emailed response.

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