Poised to supercharge investments and expand its renewable energy powerhouse, NTPC Green Energy is reportedly looking forward to a blockbuster ₹100 billion IPO next month.
NTPC Green Energy, the renewable energy subsidiary of the state-owned National Thermal Power Corporation (NTPC), is gearing up for a ₹100 billion initial public offering (IPO). According to a report by CNBC-TV18 on Monday, this IPO is anticipated to launch in the first week of November 2024.
Last week, the company filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise significant capital through this public issue. The IPO will consist entirely of new equity shares without any offer-for-sale component.
To garner investor interest, NTPC Green Energy plans to conduct a series of roadshows across major cities worldwide, including Mumbai, and international locations like London, the United States, and Singapore. These efforts are aimed at attracting a diverse range of investments to support its expansion plans.
Furthermore, the funds raised will be used primarily to pay down a portion of the outstanding loans of its subsidiary, NTPC Renewable Energy Limited (NREL), with the remainder allocated for general corporate purposes.
According to Mohit Bhargava, CEO of NTPC Greens, the IPO is a critical step for the company to secure necessary equity either through internal accruals or from the markets.
A consortium of book-runners, including IDBI Capital Markets and Securities, HDFC Bank, IIFL Securities, and Nuvama Wealth Management, will manage the IPO and assist in navigating the public issue process.
NTPC Green Energy is a public sector enterprise with a robust renewable energy portfolio, including solar and wind assets spread across more than six states. The company has set an ambitious target of achieving 60 GW renewable energy capacity by 2032. Currently, it has 3.5 GW of installed capacity, with an additional 28 GW under development.
