NTPC Green Energy Files for ₹10,000 Crore IPO, Aims to Expand Renewable Portfolio
NTPC Green Energy, a subsidiary of NTPC focused on renewable power, has submitted draft papers to the Securities and Exchange Board of India (SEBI) for a ₹10,000 crore initial public offering (IPO). The draft red herring prospectus (DRHP) outlines that the entire IPO will involve the issuance of fresh equity shares, with no offer-for-sale (OFS) component.
Of the total proceeds, ₹7,500 crore will be used to repay or prepay a portion of outstanding loans of NTPC Renewable Energy Ltd (NREL), a subsidiary of NTPC Green Energy. The remaining funds will be allocated for general corporate purposes, as stated in the DRHP.
This filing comes during a robust period for the Indian IPO market, with around 60 companies having launched their IPOs on the main board this year. NTPC Green Energy, a 'Maharatna' public sector company, manages a significant portfolio of renewable energy assets, including solar and wind projects spread across six states.
As of August 2024, the company has an operational capacity of 3,071 MW from solar energy and 100 MW from wind power. The broader NTPC Group has set an ambitious target of achieving 60 GW of renewable energy capacity by 2032. Currently, the group has an installed capacity of 3.5 GW, with more than 28 GW of renewable energy projects under development.
India's renewable energy sector continues to grow rapidly, ranking fourth globally in terms of renewable energy capacity. The country is particularly strong in wind and solar power installations, according to a Crisil report cited in NTPC Green Energy’s draft papers.
