Mytrah Energy India Explores Merger For SPAC Listing

Mytrah Energy India Pvt. Ltd is exploring a merger with other green energy firms in India to create a bigger entity ahead of a US listing plan through the special purpose acquisition company (SPAC) route option, said two people aware of the development.

The plan, which is in a preliminary stage, is to combine green energy firms, including Mytrah Energy, having less than 5 gigawatts (GW) portfolio, said the people cited above requesting anonymity.

The consolidated entity may eventually be merged with a SPAC, they said.

Vikram Kailas, co-founder and MD of Mytrah Energy, declined to comment.

SPACs are publicly traded shell companies that merge with unlisted companies to take them public, skipping the time-consuming conventional route of initial public offering (IPO). Indian green energy firms are exploring this option amid a growing focus on environmental, social and governance (ESG) investing.

Goldman Sachs-backed ReNew Power, one of India’s top green energy developers, successfully used the SPAC route by announcing its merger agreement with Nasdaq-listed SPAC RMG Acquisition Corp. II last week at an enterprise value of about $8 billion and an equity value of $4.4 billion.

Mytrah Energy is exploring the use of the SPAC route for a listing after its $750-million equity deal with private equity firm KKR fell through.

This article was first published on livemint.com