Orient Green Power (OGPL), the renewable energy company with a generation capacity of 533 MW across both wind and biomass propose to demerge its business into two separate focused entities one each for wind and one for biomass. Under this plan, the biomass business with an installed biomass generation capacity of 106 MW will be demerged into a separate company to create two separate focused entities.

As both wind and biomass are renewable energy the dynamics and requirements are completely different and this required focused management. Apart from demerger of biomass business, the company is in the process of selling of 20 MW DY Patil biomass plant in Maharashtra for which it has already signed term sheet. Further the company plans to sell another 3 biomass plants one in Telengana, 1 in Rajasthan and 1 in Madhya Pradesh. Since working capital is the major issue for better utilization of this biomass business the cash proceeds from sale of these units will improve the working capital. With enough funds the performance of balance 7-8 biomass plants will improve.

The company expects the demerger process including court approvals to get complete by Feb 2016 and March 2016. So the listing will be by end of March/April 2016.