NTPC Green Energy, the renewable energy subsidiary of NTPC, has got the green light from the Securities and Exchange Board of India (SEBI) to proceed with its highly anticipated initial public offering (IPO). The company initially submitted its draft papers to SEBI on September 18, 2024, and plans to raise Rs 10,000 crore through the issue.
IPO Structure and Employee Allocation
The IPO, with a face value of Rs 10 per equity share, will be an entirely fresh issue. It includes a reservation portion for eligible employees, along with a discounted price for employees who bid under the employee reservation category.
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This approach aims to provide employees an opportunity to invest in the company’s future growth.
Proceeds Allocation
A significant portion of the funds raised, amounting to Rs 7,500 crore, will be allocated to NTPC Green Energy’s wholly owned subsidiary, NTPC Renewable Energy Ltd. (NREL).
This funding will be directed toward repaying specific outstanding loans of NREL, either fully or partially, while the remaining proceeds will support general corporate purposes.
Largest Renewable Energy Public Sector Enterprise
According to a CRISIL report cited in the Draft Red Herring Prospectus (DRHP), NTPC Green Energy is currently India’s largest public sector renewable energy company (excluding hydro) based on operating capacity as of June 30, 2024, and power generation in Fiscal 2024.
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NTPC Ltd. fully owns NTPC Green Energy, cementing its presence in India’s transition to renewable energy sources.
Ambitious Renewable Energy Targets
NTPC Green Energy aims to play a central role in NTPC Ltd.’s goal to achieve 60 gigawatts (GW) of renewable energy capacity by Fiscal Year 2032.
Currently, the company has 3.5 GW of installed renewable capacity and an additional 28 GW under active development, underscoring its commitment to expanding India’s renewable energy landscape.
Book-Running Lead Managers
The IPO is being managed by IDBI Capital Markets & Securities, HDFC Bank, IIFL Securities, and Nuvama Wealth Management, who will serve as the book-running lead managers for this offering.
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