NTPC Green Energy, a subsidiary of state-owned power giant NTPC, is set to launch its initial public offering (IPO) to raise ₹10,000 crore in the first week of November, according to informed sources. The company recently filed preliminary papers with the Securities and Exchange Board of India (SEBI) for the IPO.
The offering will consist entirely of new equity shares, with no offer-for-sale (OFS) component, as detailed in the draft red herring prospectus (DRHP). The proceeds from the IPO are intended for various purposes, including the repayment of loans for NTPC Renewable Energy Ltd. (NREL), which will receive approximately ₹7,500 crore. Additional funds will be allocated for general corporate expenses.
To promote the IPO, NTPC Green Energy plans to conduct roadshows in major cities in India, particularly Mumbai, as well as in Singapore.
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This IPO comes at a time when India’s IPO market is thriving, with around 60 companies launching their initial share sales this year. NTPC Green Energy is recognized as a ‘Maharatna’ central public sector enterprise, with a robust renewable energy portfolio that includes solar and wind power assets across more than six states. As of August 2024, the company has an operational capacity of 3,071 MW from solar projects and 100 MW from wind projects.
NTPC aims to achieve 60 GW of renewable energy capacity by 2032, having currently installed 3.5 GW and with over 28 GW under development. India’s renewable energy sector is expanding rapidly; it ranks fourth globally in clean energy capacity, particularly in wind and solar installations. The country’s renewable energy capacity surged from 63 GW in FY12 to approximately 191 GW by March 2024, contributing to nearly 43% of India’s total power generation capacity, with solar energy being the primary driver of this growth.
The book-running lead managers for the issue include IDBI Capital Markets & Securities, HDFC Bank, IIFL Securities, and Nuvama Wealth Management.
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