September 19, 2024
New Delhi, India
Upcoming IPO
NTPC Green Energy, a renewable energy subsidiary of NTPC, has filed draft papers with the Securities and Exchange Board of India (SEBI) seeking to raise ₹10,000 crore through an initial public offering (IPO). According to the Draft Red Herring Prospectus (DRHP), the IPO will comprise entirely of fresh equity shares with no offer-for-sale (OFS) component.
Key Highlights:
- Utilization of Proceeds: NTPC Green Energy plans to allocate ₹7,500 crore from the IPO to repay or prepay a portion of the outstanding loans of its subsidiary, NTPC Renewable Energy Ltd (NREL). The remaining funds will be used for general corporate purposes.
- Timing of Filing: This IPO filing comes amidst a surge in India’s IPO market, where around 60 main board companies have already launched IPOs this year.
- Company Overview: NTPC Green Energy is a ‘Maharatna’ public sector enterprise with a strong renewable energy portfolio, including solar and wind power projects spread across more than six states in India. As of August 2024, the company had an operational capacity of 3,071 MW from solar projects and 100 MW from wind projects.
- Growth Ambitions: NTPC Green Energy is part of NTPC’s broader goal of achieving 60 GW of renewable energy capacity by 2032. Currently, the company has 3.5 GW of installed capacity, with over 28 GW under development.
- India’s Renewable Energy Growth: The renewable energy sector in India is experiencing rapid growth. The country’s installed renewable energy capacity has grown from 63 GW in FY12 to 191 GW by March 2024, including large hydro projects. Solar energy is leading this growth, with renewable energy now accounting for nearly 43% of India’s total power generation capacity.
The book-running lead managers for the IPO are IDBI Capital Markets & Securities, HDFC Bank, IIFL Securities, and Nuvama Wealth Management.
As the company prepares to go public, this IPO is expected to bolster NTPC Green Energy’s financial position and support its ambitious expansion in the renewable energy sector.
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