Azure Power Updates Potential Pricing for IPO

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Azure Power Global has registered an amended F-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). This will be the most recent public company in the Azure master limited partnership (MLP) family, once the shares make their debut on the market. The company expects to price its 3.41 million shares in the range of $21 to $23 per share. The entire offering is valued up to about $90.18 million. The company intends to list on the New York Stock Exchange under the symbol AZRE.

The underwriters for this offering are Barclays, Credit Suisse and Roth Capital Partners.

The company’s mission is to be the lowest-cost power producer in the world. It sells solar power in India on long-term fixed price contracts to customers at prices that in many cases are at or below prevailing alternatives for these customers. Azure Global is also developing micro-grid applications for the highly fragmented and underserved electricity market in India. Since inception, it has achieved a 73% reduction in total solar project cost, which includes a significant decrease in balance of systems costs due in part to its value engineering, design and procurement efforts.

In the filing, Azure said:

We developed India’s first utility scale solar project in 2009. As of July 31, 2016, we operated 24 utility scale projects and several commercial rooftop projects with a combined rated capacity of 357MW which represents a compound annual growth rate, or CAGR, of 114% from July 2012. As of such date we were also constructing 12 projects with a combined rated capacity of 390MW and had an additional 258MW committed, bringing our total portfolio capacity to 1,005MW.

The company’s longer term goals are to achieve 1 gigawatt (GW) committed or operating by December 31, 2017, and 5 GW by December 31, 2020. Azure’s ability to achieve these goals will depend on its ability to acquire the required land for the new capacity (on lease or direct purchase), raising adequate project financing and working capital, the growth of the Indian power market in line with current government targets, as well as a few other things.

The company intends to use the net proceeds for project development, working capital and other general corporate purposes.