Azure Power Gears Up for IPO

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Azure Power Global has filed an amended F-1 form with the U.S. Securities and Exchange Commission (SEC) for 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 offering is valued up to $100 million, although this number is usually just a placeholder. The company intends to list on the New York Stock Exchange under the symbol AZRE.

The sole underwriter for this offering is Barclays.

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 January 31, 2016, we operated 21 utility scale projects and several commercial rooftop projects with a combined rated capacity of 276MW which represents a compound annual growth rate, or CAGR, of 122% from May 2012. As of such date we were also constructing ten projects with a combined rated capacity of 214MW and had an additional 314MW committed, bringing our total portfolio capacity to 804MW.

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.