Fresh Issue Aims to Raise Rs 10,000 Crore; No OFS Included
NTPC Green Energy, a subsidiary of NTPC (National Thermal Power Corporation), has filed a draft red herring prospectus (DRHP) with SEBI for its upcoming IPO, planning to raise Rs 10,000 crore through a fresh issue.
NEW DELHI (Economy India): NTPC Green Energy, the green energy arm of NTPC Ltd., has officially filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The company aims to raise Rs 10,000 crore (approximately $1.2 billion) through this initial public offering (IPO). Unlike many other IPOs, this one will not include an offer for sale (OFS) from existing shareholders, indicating that the funds raised will be used exclusively for growth and expansion purposes.
IPO Details
The IPO will consist of a fresh issue of shares, without any existing shareholders offloading their stakes. NTPC Green has appointed IDBI Capital, HDFC Bank, IIFL Securities, and Nuvama Wealth Management as the book-running lead managers for the IPO.
NTPC Green’s Renewable Energy Portfolio
NTPC Green’s renewable energy portfolio is impressive, with a current solar energy capacity of 3.34 GW and wind energy capacity of 0.21 GW. In addition, the company has 8.13 GW capacity under construction and 10.57 GW in the pipeline.
This IPO comes at a time when India is aggressively pushing its renewable energy sector forward, aiming to achieve 500 GW of renewable capacity by 2030. The current renewable energy capacity of the country stands at 200 GW.
Growth Targets: 60 GW by FY32
NTPC Green Energy is leading NTPC’s efforts to grow its green business initiatives. The company has ambitious plans to achieve a total capacity of 60 GW by FY32, both organically and inorganically.
NTPC’s journey into the renewable energy sector began with its first solar project, a 5 MW installation in Dadri, Uttar Pradesh. Over the years, the company expanded its footprint, setting up solar projects in various locations such as Singrauli, Mandsaur, Anantapur, Bhadla, and Rozmal.
To consolidate all of its renewable businesses under one roof, NTPC formed NTPC Green on April 7, 2022. By June 2022, NTPC Green had already achieved a production capacity of 2 GW, and by December 2022, this capacity had grown to 3 GW.
India’s Renewable Energy Push
India is witnessing a rapid acceleration in its renewable energy sector, with a national target of achieving 500 GW of renewable capacity by 2030. NTPC Green’s IPO aligns with the country’s broader goals to reduce its carbon footprint and transition to cleaner energy sources.
With this upcoming IPO, NTPC Green is positioning itself as a major player in India’s renewable energy revolution. The funds raised will be instrumental in helping the company meet its ambitious targets, which include expanding its solar and wind energy capacity in the coming years.
(Economy India)
