NTPC Green Energy IPO Likely to be Opened in First Week of November: Report

NTPC Green Energy, a subsidiary of state-owned power giant NTPC, is likely to bring its initial public offering (IPO) to raise Rs 10,000 crore in first week of November, a source said. Last week, NTPC Green Energy had filed preliminary papers with capital markets regulator Sebi to raise Rs 10,000 crore through IPO.

The highly placed source said the IPO is expected to be launched in first week of November this year.

The company has planned roadshows in India (Mumbai) as well as abroad, especially in Singapore, the source informed.

The initial share-sale is entirely a fresh issuance of equity shares with no offer-for-sale (OFS) component, according to the draft red herring prospectus (DRHP).

The company said proceeds of the issue to the tune of Rs 7,500 crore will be used to repay or prepay part or all of its subsidiary NTPC Renewable Energy Ltd’s (NREL) outstanding loans, while a portion will be utilised for general corporate purposes.

The filing comes at a time when the country’s IPO market is thriving, with around 60 main board companies having launched their initial share-sale this year so far.

NTPC Green Energy is a ‘Maharatna’ central public sector enterprise with renewable energy portfolio, including solar and wind power assets spread across more than six states.

As of August 2024, the company’s operational capacity comprised 3,071 MW from solar projects and 100 MW from wind projects.

Overall, the NTPC group aims to reach 60 GW of renewable energy capacity by 2032. Currently, it has 3.5 GW of installed capacity and over 28 GW is in progress.

India’s renewable energy sector is growing rapidly. Globally, India is ranked fourth in clean energy capacity, including wind and solar installations, the draft paper said, citing a Crisil report.

The country’s installed renewable energy capacity increased from 63 GW in FY12 to 123 GW in FY21 and reached about 191 GW by March 2024 (including large hydro). As of March 2024, renewable energy made up nearly 43 per cent of India’s total power generation capacity, with solar energy leading this growth, it added.

IDBI Capital Markets & Securities, HDFC Bank, IIFL Securities, and Nuvama Wealth Management are the book-running lead managers to the issue.