NTPC Green Energy, a subsidiary of NTPC, is gearing up to hit the stock market with a massive Rs 10,000 crore initial public offering (IPO), aiming to raise funds for expanding its green energy portfolio. On Wednesday, the company filed its draft papers with the Securities and Exchange Board of India (SEBI), marking a significant step towards strengthening its presence in the renewable energy sector.
No Offer for Sale, Focus on Fresh Equity
Unlike many IPOs, NTPC Green Energy’s share sale will solely consist of fresh equity shares, with no offer for sale (OFS) component involved. Of the total Rs 10,000 crore, the company plans to use Rs 7,500 crore to repay or reduce the debt of its subsidiary NTPC Renewable Energy Limited (NREL). The remaining amount will be allocated for general corporate purposes, fueling further growth and expansion in the green energy space.
A ‘Maharatna’ with a Strong Renewable Portfolio
NTPC Green Energy holds the status of a ‘Maharatna’ public sector enterprise, with a growing footprint in the renewable energy sector. The company’s renewable power assets include both solar and wind projects, spanning more than six states across India. As of August 2024, NTPC Green Energy boasts an impressive operational capacity of 3,071 MW from solar energy and 100 MW from wind power, reflecting its commitment to India’s transition towards clean energy.
A Booming Year for IPOs
This year has already seen around 60 major companies launch their IPOs, with NTPC Green Energy set to add to the list. The capital markets have witnessed significant activity, as demonstrated by the overwhelming response to other IPOs such as Arcade Developers Limited, which saw a 29.42 times subscription on its third day, and Northern Arc Capital, which was oversubscribed 20.15 times.
As NTPC Green Energy moves closer to its IPO, it’s expected to further accelerate India’s renewable energy journey and strengthen NTPC’s role as a key player in the green power sector.
