The Abu Dhabi and Asian Development Bank-backed renewable energy provider is targeting an initial $386m, though share sales could take the offering to $1bn.

ReNew Power, the India-based renewable power producer backed by energy utilities Tokyo Electric Power and Chubu Electric Power, has this week filed to raise up to Rs 26bn ($386m) in an initial public offering.

The IPO, which will take place on the Securities and Exchange Board of India, will also incorporate share sales by existing investors that could push the total size of the offering to more than $1bn, a source told Reuters.

ReNew develops, builds and operates solar power plants and wind farms across India, where the government aims to oversee the build out of 175 GW of renewable energy capacity by 2022.

The company acquired competitor Ostro Energy last month for a reported $1.54bn in debt and equity, in a deal that added 850 MW of operational renewable energy capacity and 250 MW of development and construction-stage projects to a portfolio that now totals 5.6 GW.

Investment banking firm Goldman Sachs provided $200m of financing for ReNew when it was set up in 2011, and joined Asian Development Bank (ADB) and Global Environment Fund for a $140m round in 2014.

Goldman Sachs, Global Environment Fund and a subsidiary of sovereign wealth fund Abu Dhabi Investment Authority invested another $265m in ReNew in 2015, before ADB provided $390m in debt financing in January 2017.

Jera, the joint venture established by the Japan-based Tokyo Electric and Chubu Electric, supplied an additional $200m for the company at a $2bn valuation the following month. Canada Pension Plan Investment Board subsequently paid $144m for a 6.3% stake in January this year.

Global Environment Fund, Green Rock and Goldman Sachs all intend to divest shares in the offering, the source told Reuters. The proceeds will go to strategic investments and acquisitions, and the redemption of debentures issued by ReNew.

Goldman Sachs, JM Financial, Kotak Mahindra, Bank of America Merrill Lynch and JP Morgan are the global coordinators for the IPO while IDFC Bank, UBS, HSBC and Yes Securities are the bookrunners.