Azure Power scales down IPO following USD-75m investment deal

Indian solar power producer Azure Power Global Ltd has reduced the number of shares it plans to sell under its initial public offering (IPO) in New York because it agreed a USD-75-million (EUR 67m) investment from a Canadian pension fund manager.

Azure Power said last month it planned to sell a bit over 5.86 million equity shares at an estimated price of between USD 21.00 and USD 23.00 apiece. The company has revised its filing and now intends to offer 2.45 million shares at that price range.

The reason for this move is that CDPQ Infrastructures Asia Pte Ltd, a wholly-owned unit of Caisse de depot et placement du Quebec, has agreed to buy USD 75 million worth of newly issued equity shares at a price per share that is equal to the lesser of USD 22.00 and the actual IPO price.

The number of shares that will be offered by some of Azure Power’s existing shareholders, including the International Finance Corporation (IFC), remains the same -- 954,545 shares. This means that the IPO will fetch some USD 75 million at the midpoint of the estimated price range, though the firm will not receive proceeds from the sale of the shares owned by its current stockholders. The company has also granted the underwriters a 30-day option to buy 511,364 additional equity shares on the same terms.

Azure Power has applied to list its stock on NYSE under the symbol “AZRE”.

(USD 1.0 = EUR 0.893)

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