Continuum Green Energy IPO

About IPO

Continuum Green Energy Limited is set to launch its IPO, which will consist of both a fresh issue and an offer for sale. The fresh issue is expected to aggregate up to ₹12,50 crores, while the offer for sale will include equity shares aggregating up to ₹24,00 crores, making the total offer size up to ₹36,50 crores.

Objectives of Continuum Green Energy Ltd

The Net Proceeds of the Fresh Issue are proposed to be utilised in the following manner:

• Repayment/prepayment, in full or in part, of certain outstanding borrowings availed by certain of their subsidiaries, including payment of accrued interest thereon, through investment in such subsidiaries.
  
• Funding general corporate purposes.
  

Industry Outlook

India's renewable energy sector is expanding rapidly, driven by strong government policies, rising corporate demand, and technological advancements. As of March 2024, the country’s installed renewable capacity reached 191 GW, with a target of 500 GW by 2030. The commercial and industrial (C&I) segment is a key growth driver, with businesses increasingly adopting clean energy solutions. The Wind-Solar Hybrid (WSH) model is gaining popularity due to its efficiency and reliability. While challenges like land acquisition and transmission bottlenecks persist, supportive policies and growing private investments accelerate industry growth. Companies like Continuum Green Energy, with a strong PPA portfolio and focus on hybrid energy, are well-positioned to benefit from this momentum.

Company Information

Continuum Green Energy Limited is a leading independent power producer (IPP) focused on wind and wind-solar hybrid (WSH) projects. With a total capacity of 2.2 GW, the company has 1.59 GW of operational projects and 567.53 MW under construction as of June 30, 2024. It supplies renewable energy to commercial and industrial (C&I) consumers, state utilities, and power exchanges, ensuring a diversified revenue stream.

Risks of Continuum Green Energy IPO

• The company’s revenue highly depends on wind and wind-solar hybrid (WSH) projects, contributing 98% of total earnings. Any adverse environmental conditions affecting wind patterns or solar efficiency could impact power generation and revenue. Diversification into other renewable segments is limited, increasing reliance on favourable weather conditions.
  

• Continuum Green Energy has significant borrowings, and fluctuations in interest rates could affect its financial performance. A rise in borrowing costs may lead to higher repayment obligations, impacting profitability. The company’s ability to manage debt efficiently will be crucial in maintaining stable returns.
  

• Changes in government policies, tariffs, or renewable energy regulations could impact the company’s growth and expansion. Modifications in tax benefits, incentives, or compliance requirements could increase operational costs. Any adverse policy shift may also reduce demand for renewable energy from commercial and industrial (C&I) consumers.
  

• The company derives a significant portion of its revenue from a limited number of long-term Power Purchase Agreements (PPAs). While PPAs ensure revenue stability, any contract renegotiation, non-renewal, or default by major clients could impact cash flow. Expanding and diversifying the client base is essential to mitigate this risk.
  

• Infrastructure and transmission challenges may affect the efficiency and delivery of power generated by the company. Grid connectivity constraints, delays in project execution, or transmission losses could reduce energy supply reliability. Addressing these operational challenges is key to sustaining long-term growth and profitability.
  

IPO Registrar and Book Running Lead Manager

Link Intime India Private Limited is the registrar of the Continuum Green Energy Ltd IPO. The book-running lead managers are:

• Kotak Mahindra Capital Company Limited
• Ambit Private Limited
• Citigroup Global Markets India Private Limited
• JM Financial Limited

Business Model

Continuum Green Energy Limited specializes in supplying renewable energy to C&I consumers, state utilities, and power exchanges. The company has a diversified PPA portfolio and a significant share of the Indian wind energy market.

Company Growth Trajectory

Continuum Green Energy has steadily expanded its wind and wind-solar hybrid (WSH) capacity, reaching 2.2 GW, with 1.59 GW operational and 567.53 MW under construction as of June 30, 2024. The company has strengthened its position by securing long-term Power Purchase Agreements (PPAs) with commercial and industrial (C&I) consumers, ensuring stable revenue. With India targeting 500 GW of non-fossil fuel capacity by 2030, Continuum is well-positioned to capitalize on the growing demand for clean energy. Its focus on scaling operations, expanding hybrid projects, and leveraging advanced technology supports long-term growth in the renewable energy sector.

How do you check the allotment status of Continuum Green Energy Ltd?

You can check the allotment status of shares either on the Bombay Stock Exchange (BSE) website or on the website of Bigshare Services Private Limited. To check the status on the BSE website:

• Visit the BSE website
• Click on “Investor Services” and choose “Application Status Check”
• Choose the issue type — Equity or Debt
• Select the Issue Name from the drop-down. The issue name is the company’s name, which is Continuum Green Energy Ltd
• Enter your application number or PAN number
• Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status

To check status on the website of Bigshare Services Private Limited:

• Visit the website of Link Intime Private Ltd
• Click on IPO allotment Status
• Choose the name of the company from ‘Select Company’ dropdown
• Enter any of these - PAN Number, Application Number, DP/Client ID, Account Number / IFSC
• Click on Submit to check the status

How to Apply for Continuum Green Energy Ltd?

Here are the steps to apply for Continuum Green Energy Ltd IPO:

• Step 1: Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
  
• Step 2: Specify IPO details - Enter the number of lots and the price you wish to apply for.
  
• Step 3: Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
  
• Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds.
  
• Step 5: Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.