NTPC Green Energy Submits Draft Papers for ₹10,000 Crore IPO
NTPC Green Energy, the renewable energy arm of NTPC, has submitted draft papers to the Securities and Exchange Board of India (SEBI), aiming to raise ₹10,000 crore through an initial public offering (IPO). The filing was made on Wednesday and outlines plans for an all-equity IPO, with no offer-for-sale (OFS) component.
IPO Fund Utilization
As detailed in the Draft Red Herring Prospectus (DRHP), ₹7,500 crore from the IPO proceeds will be used to repay or prepay a portion of the outstanding debt of NTPC Renewable Energy Ltd (NREL), a subsidiary of NTPC Green Energy. The remaining funds will be allocated towards general corporate expenses.
IPO Amid a Strong Market
This filing comes during a surge in India’s IPO market, with around 60 companies already launching main board IPOs this year. NTPC Green Energy is a ‘Maharatna’ public sector enterprise, boasting a diverse renewable energy portfolio, including solar and wind power assets across six Indian states.
Company Overview
As of August 2024, NTPC Green Energy has an operational capacity of 3,071 MW from solar projects and 100 MW from wind energy. The broader NTPC group aims to achieve a renewable energy capacity of 60 GW by 2032, with 3.5 GW already installed and over 28 GW in the pipeline.
India’s Growing Renewable Energy Sector
India’s renewable energy sector is experiencing significant growth. According to a Crisil report cited in the draft papers, India ranks fourth globally in renewable energy capacity, driven primarily by wind and solar installations. The country’s installed renewable energy capacity has surged from 63 GW in FY12 to 191 GW by March 2024, including large hydro. Renewable energy now represents about 43% of India’s total power generation capacity, with solar energy leading the charge.
Key IPO Managers
The book-running lead managers for NTPC Green Energy’s IPO are IDBI Capital Markets & Securities, HDFC Bank, IIFL Securities, and Nuvama Wealth Management.
This IPO is poised to strengthen NTPC Green Energy’s financial position and bolster India’s leadership in renewable energy.
