Sembcorp Green Infra's IPO Filing Shows 74% EBITDA Margin
A renewable power platform with 74%-plus EBITDA margins is going public partly to pay down debt, a reminder that strong operating numbers do not always mean a comfortable balance sheet in capital-intensive infrastructure.
Sembcorp Green Infra has filed a draft red herring prospectus with SEBI for a ₹3,750 crore initial public offering, structured entirely as a fresh issue of shares with no offer-for-sale component. The Temasek-backed company, a subsidiary of Singapore's Sembcorp Industries, filed the DRHP in the final week of August. Seven merchant bankers, including Axis Capital, Citigroup Global Markets India and Kotak Mahindra Capital, are running the book, an unusually large syndicate that signals how large an offering this is meant to be within India's renewable IPP listings to date.
Where the Money Goes
The company states proceeds will go toward repaying or prepaying borrowings held by itself and its subsidiaries, supporting its balance sheet. Neither the DRHP summary nor the corroborating coverage available discloses an exact percentage split between debt repayment and any other use, such as general corporate purposes.
The Financial Picture
Sembcorp Green Infra reported FY26 revenue of roughly ₹2,653 crore and EBITDA near ₹2,099 crore, an EBITDA margin above 74%. Net debt to equity improved to 1.52x in FY26 from 1.68x the year before, evidence of deleveraging already underway before this IPO. The company carries an AA+ stable rating from CRISIL, ICRA and India Ratings.
The Asset Base
The portfolio spans 7.64 GW across 105 projects in 13 states and union territories, with 3.60 GW operational and roughly 4.04 GW under construction or development. The mix includes wind, solar, hybrid, round-the-clock and firm dispatchable renewable energy projects, plus 1,433 MWh of battery storage under construction. The company reported a project bid success ratio of 77.32% across FY24 through FY26.
So What
The filing is a useful data point on how India's larger, strategically backed independent power producers are managing leverage as the sector matures past its early growth phase. High margins and a strong credit rating have not kept debt reduction from being the headline justification for tapping public markets, suggesting the capital intensity of building out hybrid, storage-linked renewable portfolios continues to outpace what operating cash flow alone can service. For Temasek and Sembcorp Industries, listing a subsidiary at this scale also tests investor appetite for renewable IPP equity in India's public markets independent of the parent group's own balance sheet.
What remains open is exactly how much of the ₹3,750 crore goes to debt versus other uses, a detail that should become clearer as the DRHP moves through SEBI review and any amendments are filed. It also remains to be seen whether public investors price the stock on the strength of its 74% margins and AA+ rating, or discount it for the leverage the IPO itself is meant to address, a tension that will likely define how the eventual price band is set.
What to Watch
Watch for SEBI's review and clearance of the DRHP, the eventual price band and listing date once set, and whether amended filings disclose the precise use-of-proceeds split between debt repayment and other purpose
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