PE-backed Azure Power raises $61.4m in US IPO
Azure Power, an Indian solar panel company backed by several PE investors, has raised $61.4 million in its IPO on the New York Stock Exchange.
The company sold 3.4 million shares at $18 each, according to a filing; this included 2.2 million newly issued shares and 1.2 million shares offered by existing investor DEG. Azure's other backers, including the International Finance Corporation (IFC), Helion Venture Partners and Foundation Capital, retained their stakes. Shares fell in Azure's first day of trading, closing at $14.60.
The company plans to use proceeds from the offering primarily to purchase equity shares of its subsidiary Azure Power India (AZI) in order to provide capital for growth and new product development, according to its prospectus.
Founded in 2008, Azure provides solar panels for a wide range of uses, from utility scale to rooftop generators. It seeks to manage the entire development and operation process, maintaining in-house engineering, procurement and construction teams, along with maintenance and operations divisions. As of September 2015 it operated 17 utility scale projects, in addition to several commercial rooftop projects with a combined capacity of 242 megawatts.
The company has consistently incurred losses since its founding, which it expects to continue as it invests heavily in its solar projects. For the year ended March 2015, Azure reported INR296 million ($4.7 million) in operating income, down from INR341 million the year before. Over the same period the company's net loss grew from INR760 million to INR835 million.
Helion and Foundation have been investors in Azure since 2008; AVCJ Research shows them committing an undisclosed amount in the company at that time. IFC joined in 2010, providing $10 million; DEG followed in 2011 with INR680 million.
Azure's route - an Indian company listing in the US - is quite rare; the only other such PE-backed offering recorded by AVCJ Research in the last 10 years is travel company MakeMyTrip's 2010 listing on the New York Stock Exchange.
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