Orient Green Power, an associate company of Shriram EPC, is mainly engaged in developing, owning and operating a diversified portfolio of renewable energy plants based on biomass, biogas wind energy and small hydel projects. It is the largest independent operator and developer of renewable energy power plants in India based on aggregate installed capacity with an 8.9% market share in the entire installed capacity in the country of renewable energy and a 7.1% market share in the biomass space.
The company opened its IPO today with the issue price of Rs.900crores and a band of Rs.44-55 per share. The company through this IPO is looking forward to finance the construction and development of its four biomass projects and funding its Subsidiaries OGP Rajasthan, biomass power project in Kishanganj and Beta Wind Farms Private Ltd in Tamil Nadu. Apart from this some part of the funds will go towards repayment of existing debts.
For somebody looking for an exposure in the renewable energy space, Orient Green Power is a good bet. It is looking forward towards 836 megawatt capacity project installation. In the initial stages of implementation, the project may take a couple of years before yielding results. The investors need to hold on to the stock for at least two-three year period to take advantage of the potential high earnings growth which the company’s projects offer. Entry into the scrip through the IPO would be advisable for investors with a high risk appetite as it does not have much to offer in initial stages.
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