Sembcorp holds off plans to list India energy arm in favour of new equity injection
(June 18): Sembcorp Industries says Indian energy arm Sembcorp Energy India Limited (SEIL) is withdrawing a draft prospectus for its listing.
“Under Indian regulatory requirements, this upcoming change to SEIL’s capital structure necessitates the withdrawal of the draft red herring prospectus (DRHP) earlier filed by SEIL with the Securities Exchange Board of India,” said Sembcorp in a Monday night filing.
However, Sembcorp says SEIL intends to re-file a revised DRHP at an appropriate time this year, taking into consideration market conditions, it added.
For the moment, Sembcorp plans to subscribe to additional shares in SEIL and inject new equity to support the growth of its India renewable energy business.
The investment in SEIL would be made through Sembcorp's wholly-owned subsidiary Sembcorp Utilities.
At present, SEIL, has a wind and solar power portfolio of more than 1,700MW, including 550MW currently in development.
Late last year, SEIL was the first company to deliver a wind farm secured in India’s nationwide wind power tenders, with the completion of the 250MW Solar Energy Corporation of India (SECI) 1 project ahead of schedule.
SEIL is now developing two additional wind projects, SECI 2 and SECI 3, which it also won in the nationwide wind tenders.
Sembcorp says it will update the market upon the completion of the equity injection and when the change in its shareholding in SEIL becomes effective.
Shares in Sembcorp closed 2 cents lower at $2.35 on Monday before the announcement.
