NTPC Green Energy Targets ₹10,000 Crore IPO to Power India’s Renewable Future

NTPC Green Energy, a renewable energy arm of NTPC Ltd, is set to launch its IPO with an ambitious target of raising ₹10,000 crore. Following SEBI’s final observations on the IPO documents submitted on September 18, 2024, NTPC Green is now officially cleared to proceed. As a leading public sector entity in the renewable energy space (excluding hydro), NTPC Green is expected to draw significant interest, especially as India continues to pursue aggressive climate and renewable energy goals.

Key Aspects of the NTPC Green Energy IPO:

1. IPO Structure:
   • Face Value: Each share is priced at ₹10.
   • Type: This IPO consists solely of newly issued shares.
   • Employee Benefit: Certain shares are reserved for eligible employees, who will also receive a discount through an employee reservation scheme.
2. Utilization of Funds:
   • Investment in NTPC Renewable Energy Limited (NREL): ₹7,500 crore will be directed to boost assets in NTPC Green’s renewable energy portfolio through investments in NREL.
   • Debt Reduction: The company plans to use a portion of the funds to reduce existing debt linked to NREL, strengthening its financial base.
   • General Corporate Expenses: The remainder will support NTPC Green’s broader operational growth and corporate needs.
3. Financial and Operational Growth:
   • Revenue Increase: From FY 2022 to FY 2024, NTPC Green’s revenue grew by 46.82%, jumping from ₹910.42 crore to ₹1,962.60 crore.
   • Profit After Tax (PAT): The company achieved an impressive compound annual growth rate (CAGR) of 90.75%, with PAT rising from ₹94.74 crore in FY 2022 to ₹344.72 crore in FY 2024.
   • Latest Quarterly Performance: For the quarter ending June 30, 2024, NTPC Green reported ₹578.44 crore in revenue, with a PAT of ₹138.61 crore.
4. Project Portfolio:
   • Current Operations: NTPC Green Energy currently operates 2,925 MW through 14 solar and 2 wind projects.
   • Ongoing and Future Projects: The company is also managing 31 additional renewable projects across 7 states, aiming to add 11,771 MW to its capacity.
5. IPO Management:
   • The IPO is managed by IDBI Capital, HDFC Bank, IIFL Securities, and Nuvama Wealth, with KFin Technologies as the registrar.

NTPC Green Energy’s significant revenue growth, expanding renewable portfolio, and alignment with national renewable energy initiatives position this IPO as a strong contender in the market. Investors focused on the renewable sector may find NTPC Green Energy’s offering an attractive opportunity to participate in India’s sustainable energy transition.

Disclaimer: This information is for informational purposes only and does not constitute investment advice. Investing in IPOs involves risks, and readers are advised to conduct their own research or consult a financial advisor before making any investment decisions. Past performance is not indicative of future results.