Orient Green Power to raise Rs 250Cr through equity rights issue

Orient Green Power Company has announced its plan to raise up to Rs 250 crore through the issue of equity rights to its existing shareholders.

The company detailed in a regulatory filing that it will issue equity shares with a face value of Rs 10 each, totalling an aggregate amount not exceeding Rs 25,000 lakh (Rs 250 crore). This rights issue will be available to the company's existing equity shareholders.

Who are the key players?

Sumedha Fiscal Services Ltd and Saffron Capital Advisors Pvt Ltd, the lead managers to the issue, stated that the company has not yet disclosed the rights issue ratio, the price of each share, or the record date.

These details were mentioned in the draft letter of offer (DLOF) dated May 17, 2024. Under this rights issue, shareholders will be invited to buy additional shares at a discounted rate. This approach helps the company raise funds without bringing in new investors. 

What does Orient Green Power do?

Orient Green Power is one of India’s largest renewable energy producers, primarily focusing on wind energy. The company currently operates projects worth over 400 MW of wind energy capacity and has a portfolio that includes regions like Gujarat and Karnataka and international expansion to Croatia.

Its wind farms, totalling nearly 402.3 MW, are located in Tamil Nadu and Andhra Pradesh, which are known for their high wind potential and favourable incentives for renewable energy companies.

India's presence in the wind energy sector

India has a substantial presence in the wind energy sector, with 45 GW of installed onshore wind capacity as of January 2024. This places India fourth globally in terms of overall wind installations and second in the Asia-Pacific region behind China.

According to the Global Wind Energy Council’s (GWEC) Global Wind Report 2024, the industry is expected to continue growing, with an additional 22.8 GW of onshore wind capacity anticipated between 2024 and 2028. In 2023 alone, India installed over 2.8 GW of onshore wind power, the highest annual installation since 2017.

The National Electricity Plan projects that India’s installed wind capacity will reach 73 GW by 2026–2027 and 122 GW by 2031–2032. GWEC also noted a strong pipeline of more than 13 GW of wind projects in India as of September 2023.