NTPC Green Energy to Launch ₹10,000 Crore IPO Following SEBI Approval, Targeting Growth in Renewable Energy Sector

NTPC Green Energy, a subsidiary of NTPC Ltd focused on renewable energy, is set to launch its initial public offering (IPO) with an aim to raise ₹10,000 crore. The IPO has received final approval from SEBI, following the completion of its review of the documents submitted on September 18, 2024. As a major player in the public sector renewable energy sector, NTPC Green Energy is expected to generate substantial interest from investors.

IPO Overview:

• Structure: The IPO will consist entirely of fresh equity shares with a face value of ₹10 each. A portion of the shares is allocated for qualified employees, who will receive a discount as part of the employee reservation scheme.
• Use of Proceeds: The funds raised—₹7,500 crore—will be strategically allocated for investments in NTPC Renewable Energy Limited (NREL), to address existing debt related to NREL, and for general corporate expenses. This funding aims to enhance the company’s renewable energy assets and improve its financial stability.
• Management and Registrar: The IPO will be managed by IDBI Capital Markets & Securities Limited, HDFC Bank Limited, IIFL Securities Limited, and Nuvama Wealth Management Limited, with KFin Technologies Limited acting as the registrar for the offering.

Company Background:

As of June 30, 2024, NTPC Green Energy holds the distinction of being the largest public sector entity in renewable energy (excluding hydro) by both operating capacity and power generation for Fiscal 2024. The company operates 2,925 MW across 14 solar and 2 wind projects and is actively engaged in 31 ongoing renewable projects across seven states, with a total contracted capacity of 11,771 MW.

Financial Highlights:

NTPC Green Energy has shown remarkable growth, with revenue increasing by 46.82% from ₹910.42 crore in Fiscal 2022 to ₹1,962.60 crore in Fiscal 2024. The company’s profit after tax also surged, exhibiting a compound annual growth rate (CAGR) of 90.75%, rising from ₹94.74 crore in Fiscal 2022 to ₹344.72 crore in Fiscal 2024. In the latest quarter ending June 30, 2024, the company reported revenue from operations of ₹578.44 crore and a profit after tax of ₹138.61 crore on a restated basis.

The timing of the IPO aligns well with India’s increasing focus on renewable energy to achieve its climate goals. With a comprehensive portfolio and strong financial performance, NTPC Green Energy is well-positioned to play a critical role in the country’s renewable energy landscape.

Disclaimer: This information is for informational purposes only and does not constitute financial advice. Investors should conduct their own research or consult with a financial advisor before making investment decisions regarding the NTPC Green Energy IPO or any other investment opportunities.