Continuum Green Founders Gain Full Control in Strategic Buyout to Advance Green Energy Leadership

In a landmark development in India’s renewable energy sector, the founders of Continuum Green Energy Holdings Limited (CGEHL) are set to gain full control of the company through a debt-funded buyout of a 26% stake from institutional investor Clean Energy Investing Limited (CEIL).

According to Fitch Ratings, the transaction will have no impact on CGEHL’s existing credit rating (B+/Stable), affirming the company’s financial resilience and governance strength. The buyout represents a significant step toward consolidating leadership and accelerating the company’s growth in India’s rapidly expanding green energy market.

A Strategic Buyout to Strengthen Green Vision

The buyout will be funded by Continuum Energy Private Limited (CEPL), owned by founders Vikash Saraf and Arvind Bansal, through a USD 221 million promissory note issued to CEIL. The note is unsecured and subordinated, with interest accrued and payable at maturity, reflecting the founders’ long-term commitment to the company’s financial stability and growth trajectory.

This move will see CEIL exit its 26% stake and step down from all board positions within CGEHL and its subsidiaries. The transaction is driven by CEIL’s regulatory requirements, not by performance concerns, reinforcing investor confidence in the company’s fundamentals.

Fitch Ratings clarified that the new debt will be subordinated to CEPL’s existing USD 230 million note, issued in 2024 to fund CEIL’s earlier stake sale. Importantly, the new debt carries no fixed maturity date, and repayments can only occur after the existing senior notes are cleared.

No Rating Impact : A Vote of Confidence

Fitch Ratings has maintained CGEHL’s B+/Stable rating, emphasizing that the buyout will not alter the company’s credit profile or liquidity position. The rating agency pointed to strong bond covenants and restricted payment clauses in CGEHL’s USD 435 million high-yield notes issued by its Singapore-based subsidiary, Continuum Energy Aura Pte. Ltd. (CEAPL), as safeguards for investor interests.

These covenants limit shareholder dividends to 50% of cumulative consolidated net income and restrict other outflows such as shareholder loans. Fitch also noted that founder control does not raise governance risks, thanks to continuing oversight by Just Climate Fund (UK) — which holds 14.65% in the Indian holding company and retains veto rights on key decisions, including related-party transactions.

This structure ensures that governance, transparency, and accountability remain strong despite the ownership change.

“The absence of minority shareholder veto rights after CEIL’s exit does not raise governance concerns,” Fitch said, “as oversight mechanisms and shareholder covenants remain intact.”

A Resilient Company in India’s Renewable Energy Landscape

CGEHL’s strong credit rating reflects its expanding and diversified portfolio of stable, cash-generating renewable assets, all backed by long-term power purchase agreements (PPAs) with reliable counterparties.

The company’s 3.5 GW portfolio of renewable projects across India — spanning solar, wind, and hybrid energy assets — places it among the nation’s most significant clean energy players. Despite high leverage levels, with EBITDA net leverage forecasted to exceed 10x in the short term, Fitch expects a healthy reduction to below 8x by FY2027, once the expanded portfolio reaches full operational maturity.

This improved leverage ratio will align with CGEHL’s strategy to build scale while maintaining financial discipline and operational efficiency.

Sustained Stability Amid Expansion

The USD 435 million in high-yield notes issued by CEAPL remain central to the group’s financing structure. Fitch emphasized that the restricted payment clause within the bond indenture ensures cash flow protection, safeguarding investor interests even as the founders consolidate ownership.

Additionally, CGEHL’s holding company liquidity remains stable, and the transaction does not trigger any default events or covenant breaches. Fitch expects limited shareholder distributions in the near to medium term, given the company’s aggregate net losses of INR 16.5 billion reported over FY24 and FY25, as it continues to invest in expansion and operational scale-up.

This focus on reinvestment over profit distribution signals the founders’ commitment to long-term sustainability rather than short-term gain — a key trait of vision-led energy leadership.

Governance and Global Partnerships Drive Confidence

Fitch’s analysis also underlined the importance of global partnerships and governance continuity within CGEHL. The ongoing participation of Just Climate Fund, a UK-based impact investor focused on climate solutions, reinforces global confidence in the company’s ESG credentials and strategic direction.

With board-level oversight, veto rights, and strong financial covenants, the company remains aligned with international sustainability standards. This governance structure, coupled with Fitch’s reaffirmed rating, highlights Continuum Green’s credibility as a trusted renewable energy developer.

Leadership Vision: Scaling India’s Green Future

Founders Vikash Saraf and Arvind Bansal, who have been instrumental in steering Continuum’s growth since inception, are now positioned to lead the company into its next phase of expansion. Their vision is to create one of India’s most diversified renewable power platforms, aligned with the country’s Net Zero 2070 commitments.

With operational projects spread across multiple states and a strong pipeline of new developments, Continuum Green Energy is set to play a central role in India’s clean energy transition.

The founders’ decision to acquire full control aligns with the company’s long-term mission — to scale renewable capacity while maintaining investor trust, regulatory compliance, and financial discipline.

“This buyout is not just a business transaction,” said a renewable energy analyst, “it’s a signal of the founders’ belief in India’s green growth story and their confidence in the company’s ability to deliver consistent, sustainable value.”

Fitch Reaffirms Confidence in India’s Renewable Transition

The reaffirmation of CGEHL’s rating by Fitch comes at a time when India’s renewable sector is attracting record global investment, driven by supportive policies, declining costs, and corporate sustainability commitments.

CGEHL’s performance and governance model serve as a blueprint for private-sector-led renewable growth, where financial prudence and environmental responsibility go hand in hand.

As the company moves into FY2026 and beyond, Fitch expects it to strengthen its balance sheet, expand its renewable footprint, and optimize capital allocation — all while maintaining a stable outlook.

A Steady Path Toward Green Energy Leadership

The consolidation of ownership at Continuum Green Energy marks a strategic inflection point for the company and India’s renewable energy sector. With founders at the helm, robust financial safeguards, and Fitch’s reaffirmed rating, CGEHL is well-positioned to drive the next phase of India’s clean energy expansion.

The transaction underscores that sustainability, governance, and growth can coexist, paving the way for continuity, stability, and innovation in India’s green transition.

In an era defined by decarbonization and energy security, Continuum Green stands as a symbol of India’s green energy leadership — where visionary founders, sound governance, and global credibility come together to power a cleaner, brighter future.

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