Orient Green Power IPO

Orient Green Power IPO

Orient Green Power Company IPO Analysis

Orient Green Power Company (OGPL) develops and operates renewable energy based power plants. The company, which began its operation in April 2008 by acquisition and operation of the 8-MW Kotputli biomass power plant in Rajasthan, has now grown to become one of the largest independent operator and developer of renewable energy based power plants in India on installed capacity with an aggregate generation capacity of 213.03 MW.

Orient Green Power IPO Review

Investors with a stomach for risk can consider the initial public offer of Orient Green Power (OGPL), a pure play on the renewable energy segment. The company a leading renewable energy developer, plans to scale up its capacity from 209 MW to 1013 MW by end-FY-2013. Strong revenue growth coupled with tax benefits, preferential tariffs, incentives and carbon credit will aid margin expansion for OGPL. The execution time for renewable energy projects is lower than that for conventional ones.

Orient Green Power files for IPO

Shriram EPC holds 35.8% stake in the company

Shriram EPC-promoted Orient Green Power, has filed a draft red herring prospectus (DRHP) for an initial public offer (IPO). Shriram EPC holds 35.8% stake in the company. Two private equity firms Olympus Capital and Bessemer Venture Partners hold the remaining stake.

Orient Green is a renewable energy producer in India focused on the development, ownership, and operation of wind, biomass and small hydel projects. The company currently has an aggregate installed capacity of 196 megawatts (MW), comprising 156 MW from wind power and 40 MW biomass projects. The company requires fund to expand power generation capacity to to 1000 MW in two years.

The IPO will consists of a fresh issue of shares and the holding of the current shareholders will be reduced to that extent.