Sembcorp Energy India Ltd, a unit of Singapore infrastructure conglomerate Sembcorp Industries Ltd, has filed a draft red herring prospectus with the SEBI.
The IPO will include a fresh issue of shares to raise up to Rs 4,095 crore ($631 million) and an offer for sale of 146.78 million shares by Sembcorp Industries and local joint venture partner Gayatri Energy Ventures India Ltd.
Pre IPO PLacement:
Sembcorp Energy is also considering a pre-IPO placement of up to Rs 650 crore, the draft prospectus showed.

Singapore’s Sembcorp Industries said, it expects to raise about $380 million from the sale of some utilities assets and plans to list its Indian energy business, as it reported a plunge in quarterly profit. The industrial conglomerate, which has been conducting a strategic review of its business, said it has begun the process for an IPO of the Indian unit, Sembcorp Energy India Ltd.

The company, the biggest shareholder in rig-builder Sembcorp Marine, reported a net profit of S$22.8 million for the fourth quarter, a drop of 85% from the same period a year ago.

Sembcorp Industries’ review, which began last year, had prompted market talk of a potential privatisation or divestment of Sembcorp Marine, according to analysts.

Neil McGregor, Sembcorp Industries’ CEO, said the company was confident that Sembcorp Marine was well-positioned to benefit from offshore and marine industry’s recovery, said.The company said its utilities business will now focus on four key markets, Singapore and Southeast Asia, China, India and the UK.

Singapore state investor Temasek is the biggest shareholder in Sembcorp Industries.Sembcorp industries, which set a target of doubling its renewables portfolio to about 4,000 megawatts by 2022, also said it had entered into a conditional agreement to divest its municipal water operations in South Africa.

Lead Managers:
Axis Capital, Credit Suisse, CLSA and SBI Capital Markets Ltd are managing the IPO.