NTPC Green Energy, the renewable energy division of NTPC Limited, has submitted preliminary papers to the Securities and Exchange Board of India (Sebi) for an initial public offering (IPO) aiming to raise ₹10,000 crore.
According to the draft red herring prospectus (DRHP), the IPO will consist solely of a fresh issuance of equity shares, with no offer-for-sale component included. The company plans to allocate ₹7,500 crore of the proceeds to repay or prepay loans of its subsidiary, NTPC Renewable Energy Ltd (NREL), with the remaining funds designated for general corporate purposes.
This filing arrives amidst a flourishing IPO market in India, where approximately 60 companies have launched initial share-sales this year. NTPC Green Energy, recognized as a ‘Maharatna’ central public sector enterprise, boasts a diverse renewable energy portfolio that encompasses solar and wind power projects across more than six states.
As of August 2024, NTPC Green Energy’s operational capacity stands at 3,171 MW, including 3,071 MW from solar installations and 100 MW from wind projects. The NTPC group has set an ambitious target to achieve 60 GW of renewable energy capacity by 2032, currently holding 3.5 GW of installed capacity with an additional 28 GW under development.
India’s renewable energy sector is witnessing rapid growth, with the country ranking fourth globally in total renewable energy capacity, as highlighted in the draft documents. The installed capacity surged from 63 GW in FY12 to about 191 GW by March 2024, with solar energy leading this expansion, now constituting nearly 43 percent of the country’s total power generation capacity.
IDBI Capital Markets & Securities, HDFC Bank, IIFL Securities, and Nuvama Wealth Management have been appointed as book-running lead managers for the IPO.
