Wind and solar developers and other transition-related companies are being undervalued on stock markets, making it harder for them to raise money. This is according to the chief executive of ReNew Energy Global, one of India’s biggest wind and solar developers. “If you look at basic valuations, it’s very clear that companies are not being rewarded for growth, for the scale they have built over the past few years,” Sumant Sinha told the Financial Times.
Yet this has motivated private equity majors to expand their stakeholding in the industry, the report also noted, mentioning talks between Brookfield and French Neoen over a possible acquisition and KKR’s deal to take over German Encavis. “We are a profitable company — there is no reason for our valuation to be where it is right now. If you look at the Indian market, valuations are a lot higher because people are seeing that growth,” Sinha told the Financial Times.