The world is gradually transitioning to alternative energy sources, and this trend will take decades to play out. ReNew Power, an alternative energy company that is a pure play on India, recently agreed to go public via a SPAC merger with blank-check company RMG Acquisition Corp II (RMGB). In this Fool Live video clip, recorded on March 15, Fool.com contributors Matt Frankel, CFP, Dan Caplinger, and Brian Withers discuss whether this could be a great long-term investment in the alternative energy space.
Dan Caplinger: I did a little bit of a look on this. Basically what we're talking about is a renewable power, wind and solar company hitting the market in India. I think for U.S. investors, it's kind of a nice opportunity to be able to diversify. Some wind and solar companies are global and so you get some exposure that way. But this is kind of the first, at least the first I know of, a pure play on the Indian market in terms of renewable power. I think that that has a lot of potential. India obviously has a huge population, huge energy needs, huge upside potential for economic growth and that just seems to me to be a fertile market going forward for these kinds of projects. Moreover, it's probably where you're going to get the most bang for the buck in terms of investing in renewable power infrastructure in a way that will head off further contributions to carbon, global warming. So being able to hit that market head-on and grab it for all that it's worth, I think, is a really good idea and I hope that it pays off for them.
Matt Frankel: I've got to say that India is probably my favorite foreign market to invest in right now. It's not only one of the biggest population centers in the world with a lot of economic growth, they also have a very fast-growing middle-class with a lot of spending power that's coming on the market in the next decade or two. I like this investment. If you notice the kind of theme going through all of these, Chamath loves renewable power, climate change fighting investments, things that democratize services like financial services and that's really what this one does here. I'm a big fan of India. It's a big growth market to invest in and it seems like you're actually getting this at really good deal. I haven't checked it today, but I think it's still trading for not that much of a premium over the $10 IPO price.
Brian Withers: I know that India has been faced with electrical grid infrastructure issues and this helps that. I think they've got a long runway ahead of them. I think it's an interesting way to diversify our portfolio for sure.
Caplinger: $10.30 right now.
Frankel: Yes. So you're getting it for barely above where the big investors got into it.