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Sembcorp to inject new equity in India energy business

SEMBCORP Industries plans to subscribe to additional shares and inject new equity in its India energy arm Sembcorp Energy India Limited (SEIL), in a bid to support the growth of its India renewable energy business.

Sembcorp has withdrawn the draft red herring prospectus (DRHP) earlier filed by SEIL with the Securities Exchange Board of India, in line with Indian regulatory requirements for such a change to SEIL’s capital structure.

Sembcorp said on Monday in a bourse filing that SEIL intends to re-file a revised DRHP at an appropriate time this year, taking into consideration market conditions. 

SEIL has a wind and solar power portfolio of more than 1,700 megawatts, including 550 megawatts currently in development.

Late last year, SEIL became the first company to deliver a wind farm secured in India’s nationwide wind power tenders. The completion of the 250-megawatt Solar Energy Corporation of India (SECI) 1 project ahead of schedule, while SEIL is progressing with the development of wind projects, SECI 2 and SECI 3.

Sembcorp shares closed at S$2.35 on Monday, down S$0.02 or 0.84 per cent before the announcement was made.