NTPC Green Energy IPO: Renewable energy company gets SEBI nod to raise ₹10,000 crore

NTPC Green Energy, the renewable energy vertical of NTPC Limited, received approval from SEBI (Securities and Exchange Board of India) to float its initial public offering (IPO), an update with the markets regulator showed on Monday, October 29.

NTPC Green Energy is looking to raise ₹10,000 crore through the IPO with a face value of ₹10 per equity share. The company filed its preliminary IPO papers with SEBI on September 18, 2024.

The initial share-sale is entirely a fresh issuance of equity shares with no offer-for-sale (OFS) component, according to the draft red herring prospectus (DRHP).

The company plans to use ₹7,500 crore from the total proceeds to repay or prepay part or all of the outstanding loans of its subsidiary NTPC Renewable Energy Ltd (NREL). A portion of the proceeds will also be utilised for general corporate purposes.

The upcoming IPO is being managed by IDBI Capital Markets & Securities, HDFC Bank, IIFL Securities, and Nuvama Wealth Management. These will act as the book-running lead managers for the offering.

About NTPC Green Energy

NTPC Green Energy, a 'Maharatna' central public sector enterprise, has a renewable energy portfolio, including wind and solar power assets in more than six states.

As of August 2023, the energy firm's operational capacity comprised 3,071 megawatt (MW) from solar projects and 100 MW from wind projects.

The NTPC group intends to achieve 60 gigawatt (GW) of renewable energy capacity by 2032. It has an installed capacity of 3.5 GW and over 28 GW in progress.

According to a Crisil report cited in the company’s red herring prospectus (DRHP), NTPC Green Energy is currently India’s largest public sector renewable energy company on the basis of operating capacity as of June 30, 2024, and power generation in FY24.