NTPC Green Energy, the renewable energy arm of National Thermal Power Corporation (NTPC), is preparing to raise ₹10,000 crore through an initial public offering (IPO) scheduled for the first week of November 2024. This major fundraising effort aims to drive the company’s growth and enhance its renewable energy footprint.

Key Details:

• IPO Timeline: The public issue is expected in November 2024.
• IPO Size: NTPC Green Energy plans to raise ₹10,000 crore from the offering.
• Use of Proceeds: The funds will be primarily used to repay loans of its subsidiary NTPC Renewable Energy Ltd (NREL), with additional funds allocated for general corporate purposes.

Roadshow for Investment Attraction

Ahead of the IPO, NTPC Green Energy is set to hold investment roadshows in several key markets, including Mumbai, London, Singapore, and the United States, in an effort to attract investors from both India and abroad. These roadshows will play a crucial role in drumming up interest in the company’s renewable energy growth story.

Draft Red Herring Prospectus (DRHP) Filing

In September 2024, NTPC Green Energy filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), outlining plans to raise capital through the IPO. According to the company, this is a fresh issue of equity shares, with no Offer for Sale (OFS) component, meaning the company’s existing shareholders will not be divesting any of their shares.

NTPC Green Energy’s Growth Strategy

NTPC’s management, led by CEO Mohit Bhargava, emphasized the need for additional equity to support the company’s rapid expansion. Bhargava explained, “We will have to raise equity either through internal accruals or from the markets. So, we feel that going public is essential for our future growth.”

Renewable Energy Portfolio and Targets

NTPC Green Energy has an ambitious goal of reaching 60 GW of renewable energy capacity by 2032. Currently, the company operates with 3.5 GW of installed capacity, while another 28 GW of projects are in various stages of development. The renewable energy portfolio includes solar and wind assets spread across more than six Indian states.

Key Takeaways:

• Maharatna Status: NTPC Green Energy, a Maharatna public sector enterprise, is positioning itself as a leading player in India’s renewable energy sector.
• Market Leadership: The IPO is expected to unlock significant value for the company, as it seeks to capitalize on the global shift towards clean energy.
• Book-Runners: The book-running lead managers for the IPO include IDBI Capital Markets & Securities, HDFC Bank, IIFL Securities, and Nuvama Wealth Management.

Strategic Importance of the IPO

This IPO will mark a pivotal moment for NTPC Green Energy, as the company aims to expand its renewable energy assets significantly. With the funds raised, NTPC Green Energy will further its mission of reducing carbon emissions and contributing to India’s sustainable energy transition.

By focusing on renewable energy sources like solar and wind, NTPC Green Energy is aligning itself with the global push toward greener, more sustainable power solutions.

Conclusion

With the ₹10,000 crore IPO, NTPC Green Energy is set to make a bold move in the financial markets while driving forward its renewable energy ambitions. Investors, both domestic and international, will be keeping a close watch on this offering as the company ramps up efforts to achieve its long-term sustainability targets.