Indian solar power producer Azure Power Global Ltd today priced its initial public offering (IPO) in New York at USD 18.00 (EUR 16.35) a share, below its estimated range of USD 21.00 to USD 23.00 apiece.
The company is offering 2.242 million equity shares and some of its existing shareholders will sell a further 1.167 million shares at that price. This means that the IPO will fetch some USD 61.4 million, though the company will not receive any of the proceeds from the sale of shares by its current stockholders. It has also granted the underwriters a 30-day option to buy 511,364 additional equity shares.
Azure Power initially planned to sell a bit over 5.86 million equity shares, excluding 954,545 shares that were to be offered by its existing investors. A regulatory filing from earlier this month showed that the company had reduced the number because it agreed a USD-75-million investment from Canadian pension fund manager Caisse de depot et placement du Quebec.
Today, Azure Power confirmed it will raise an additional USD 75 million from the sale of equity shares in connection with a concurrent private placement at the IPO price. It, however, gave no further details about that transaction.
As previously announced, the company will use most of the fresh capital to fund the purchase of equity shares to be issued by its operating subsidiary Azure Power India Pvt Ltd (AZI), which in turn will spend the amount to cover growth capital requirements, finance new project development and for other general corporate purposes.
Azure Power’s stock will start trading on the New York Stock Exchange (NYSE) on October 12 under the symbol “AZRE”.
(USD 1.0 = EUR 0.908)
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