Business Profile of Continuum Green Energy Limited
In the renewable energy sector, Continuum Green Energy is a leading brand, established in 2009 and headquartered in Mumbai. The company has expertise in the development, construction, and operation of wind and wind-solar hybrid (WSH) energy projects. The company caters to a diversified client base of over 170 high-credit quality C&I (Commercial & Industrial) segments. The aggregate portfolio capacity of the company is around 4.7 GWp out of which approximately 2.2 GWp is operational, 1.3 GWp is under construction and 1.2 GWp is under development. Continuum Green Ltd. operates on a long-term power purchase agreement (PPA) which helps ensure steady revenue through its cash flows. The company received significant financial support from Continuum Green Energy Holding Limited and JC Infinity (B) Limited. In June 2024, the company successfully raised $650 million through the issuance of a secured note to support its expansion.
Objective of Continuum Green Energy IPO
As per the draft red hearing prospects, the IPO issue consists fresh issue and offer for sale. The fresh issue consists of XXXX shares at the face value of ₨ 10.00 each aggregating up to ₹12,500 .00 millions and OFS consists XXXX shares at face value of ₨ 10.00 each aggregating up to ₨ 24,000.00 millions. There are fresh shares issues and OFS by company and main objective of company is repayment debt of its subsidiaries and general corporate expenses.
Details of Continuum Green Energy IPO
| IPO Open Date | N.A. |
| IPO Close Date | N.A. |
| Basis of Allotment | N.A. |
| Listing Date | N.A. |
| Face Value | ₹10.00 per share |
| Price | N.A. |
| Lot Size | N.A. |
| Total Issue Size | Up to XXXX Equity Shares |
| Aggregating up to ₨ 36,500.00 million | |
| Fresh Issue | Up to XXXX Equity Shares |
| Aggregating up to ₨12,500.00 million | |
| Offer For Sale | Up to XXXX Equity Shares |
| Aggregating up to ₨24,000.00 million | |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE & NSE |
| QIB Shares Offered | Not more than 75% of the Net Issue |
| Retail Shares Offered | Not more than 10% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
Continuum Green Energy IPO: Issue Price & Size
The issue price of CONTINUUM GREEN ENERGY LIMITED hasn’t been released yet. Upon releasing the dates, the investors can bid between those price ranges. The company has fresh issue and OFS aggregating up to ₹ 36,500.00 million at the price of ₨XXXX.
Launch Date of Continuum Green Energy IPO
The IPO opening date of CONTINUUM GREEN ENERGY LIMITED hasn’t been officially announced yet, upon the declaration of dates investor can bid for IPO.
Financial Statements of Continuum Green Energy Limited
| Particulars (₨ Million) | Ended Dec 31, 2024 | Ended Dec 31, 2023 | F.Y. Mar 31, 2024 | F.Y. Mar 31, 2023 | F.Y. Mar 31, 2022 |
| Income | |||||
| Revenue from operations | 13,274.09 | 11,218.60 | 14,133.10 | 9,951.05 | 9,237.58 |
| Other income | 815.24 | 532.79 | 721.95 | 1,394.00 | 563.69 |
| Total income | 14,089.33 | 11,751.39 | 14,855.05 | 11,345.05 | 9,801.27 |
| Expenses | |||||
| ( a ) Operating & maintenance expenses | 2,266.17 | 1,539.03 | 2,120.82 | 1,712.61 | 1,252.79 |
| ( b ) Employee benefits expense | 445.94 | 455.42 | 578.78 | 440.24 | 366.07 |
| ( c ) Finance costs | 11,984.16 | 9,040.45 | 11,676.15 | 9,147.27 | 6,395.94 |
| ( d ) Depreciation and amortization expense | 3,655.69 | 2,476.49 | 3,533.52 | 2,561.72 | 2,081.94 |
| ( e ) Other expenses | 1,071.12 | 797.77 | 1,072.56 | 658.50 | 490.25 |
| Total expenses | 19,423.08 | 14,309.16 | 18,990.83 | 14,520.34 | 10,586.99 |
| Restated loss before exceptional items and tax | (5,333.75) | (2,557.77) | (4,135.78) | (3,175.29) | (85.72) |
| Exceptional items | (366.85) | (178.08) | (713.89) | (426.58) | - |
| Restated loss before tax | (5,700.60) | (2,735.85) | (4,849.67) | (3,601.87) | (785.72) |
| Tax expenses | |||||
| ( a ) Current tax | 2.49 | 57.83 | 48.38 | 14.34 | 7.54 |
| ( ) Deferred tax | ( 1,262.64 ) | 1,262.38 | 850.65 | 627.59 | 234.54 |
| Total tax expense | ( 1,260.15 ) | 1,320.21 | 899.03 | 641.93 | 242.08 |
| Restated loss after tax | (4,440.45) | (4,056.06) | (5,748.70) | (4,243.81) | (1,027.80) |
Key financial ratios of Continuum Green Energy Limited
| Particulars | F.Y. Mar 31, 2024 | F.Y. Mar 31, 2023 | F.Y. Mar 31, 2022 |
| Net profit margin | -40.68% | -42.65% | -11.13% |
| EBITDA margin | 78.40% | 85.75% | 83.27% |
| Return on assets | -4.48% | -4.29% | NA |
| Return on equity | -1551.73% | -87.68 | NA |
| Debt to equity | -63.51% | 3.93% | 9.61% |
| Interest coverage ratio | 94.91% | 117.31% | 120.26% |
| Current ratio | 0.86 | 1.94 | 1.05 |
| Assets turnover ratio | 10.29% | 8.33% | 11.78% |
Promoters & Shareholding of Continuum Green Energy IPO
As of date, according to the DRHP filed with SEBI promoters and promoter group have 85.35% shareholding in company. The main promoters in company who have significant shares in company are Vikash saraf, Arvind bansal, Continuum green energy holding limited, Continuum Energy Pte Limited, Clean joules Pte Limited and Starlight pacific venture Limited
Should You Subscribe To Continuum Green Energy Limited IPO
While investing or subscribing to any IPO, consider the investment rationales related to the company. Hence, here you can find out the strength of the company that will be its growth factors. And also check the risk factors that can affect the growth and operational efficiency of the company.
Competitive Strengths of Continuum Green Energy IPO
Continuous expansion in different states
The company has a clear vision to expand its business in different states like Karnataka, Gujarat, and Rajasthan which promote and favor in renewable energy and have high industrial demand. These states provide supportive policy environments, such as free access power distribution and net metering for C&I (Commercial & industrial) customers. Entering into these states could improve revenue and customer base of company.
New service offering and cross-selling
Continuum Green Ltd. has a well-established portfolio of over 170 clients. The company is significantly in a strong position to provide different services other than renewable power suppliers to become a complete energy solution provider. It provides an opportunity for the company to cross-sell in which the company can offer additional products and services that help its core energy offerings. The value-added services of the company include energy management solutions, battery energy storage systems, and sustainability consulting- all of these help in expansion and competition from its rivals in the market.
Strong financial stability and backing
The company secured a ₨1,256 cr equity investment from JC infinity (B) limited in June 2024 and it is an affiliate of Just Climate LLP- a global firm which is the climate-focused company managing USD 35 billion in assets. It strengthens Continuum Energy Ltd. financial position without adding any debt and signifies its long-term growth potential. This funding will support project expansion, improve credibility with stakeholders, and align the company with global sustainability standards.
Well diversified financing
Continuum Green Ltd. made a strong and diversified financing partnership with prime institutions such as the State Bank of India (SBI), International Finance Corporation (IFC), Power Finance Corporation (PFC), and others. These partnerships provide access to multiple sources for funding- both domestic and global to improve flexibility in the financial market. This supports the company in raising capital efficiently for major-scale renewable projects, reduces dependency on a single resource for funds, and strengthens company operations in the market.
Risk Factors of Continuum Green Energy IPO
Large capital requirement
The company operates in a high-capital investment industry where renewable energy projects require a significant upfront investment in infrastructure, land, and technology. To expand its business and finance its growth, the company has raised a large debt which includes US dollar-denominated bonds due to this company financial obligation increased. If interest expenses rise majorly in a global rate environment it will not only create a high debt burden on the company but it will also adversely affect the financial flexibility of the company to invest in new projects.
Policy risk
The change in policy creates a large risk to the company, however Indian government is ambitious for renewable energy targets. The government policies include subsidies, tax incentives, and power purchase agreements which can be changed by the government at any moment which raises uncertainty in project execution and financial planning. Any delays in policy implementation by the government or medication in the policy framework could negatively impact business operations and the long-term planning of the company.
Constant technological improvement
Continuum Green Energy Ltd. is exposed to the risk of technological obsolescence, as the renewable industry is rapidly upgrading itself. New technology and innovation in battery storage, solar PV, and wind turbine design are constantly improving efficiency and cutting its costs. If a company remains on outdated technology it will increase operational costs and may produce less energy which ultimately makes the company less competitive in market. It is necessary for the company to stay technologically updated for better profitability and long-term viability.
Currency risk
Continuum Green Energy has exposure to foreign exchange risk because of USD- denominated debt of the company. The cost of serving for the debt can increase if any fluctuation occurs in the INR&USD exchange rate. As the Indian rupees weaken in the market it increases the serving cost of debt which directly impacts profitability and operations of the company. Although company uses the hedging method to minimize risk but instability in financial market could adversely affect company profit margins.
Grey Market Premium of Continuum Green Energy Ltd IPO
Grey market premium is the premium quoted over the IPO issue price. GMP shows that investors are ready to pay above the upper band of the IPO issue price. GMP is determined in the grey market as per the demand and supply of the shares in the primary market. A grey market is that unofficial ecosystem of unlisted companies' stocks that start trading even before the launch of the IPO to the date of its listing.
Also Read: What is Grey Market Premium in IPO: How is GMP Calculated & Reliable
However, GMP is not a reliable factor, as it keeps fluctuating as per the demand and supply of shares in the primary market. There are numerous factors that affect the stock market in India and individual stock prices of different companies that are already listed and trading in the secondary market. However, for an IPO-bounded company, you can consider the GMP as the speculative listing price of the share
According to various online sources, the Grey Market Premium or GMP of the Continuum Green Energy Limited is trading around Rs XX in the grey market. It means shares are trading at the upper band issue price of Rs XX with a premium in the grey market and may list around the same price.
