NTPC Green Energy Receives SEBI Approval for ₹10,000 Crore IPO

NTPC Green Energy, a subsidiary of India's largest power producer NTPC, has received approval from the Securities and Exchange Board of India (SEBI) to proceed with a ₹10,000 crore initial public offering (IPO). This IPO, set to be a fresh issuance of equity shares with a face value of ₹10 per share, will support NTPC’s green initiatives, offering an investment opportunity with a reserved allotment and discounted share price for eligible employees.

The company filed its IPO proposal with SEBI on September 18, 2024, and recently gained final observation to move forward with the offering. A significant portion of the proceeds, approximately ₹7,500 crore, is earmarked for investment into NTPC Green’s wholly-owned subsidiary, NTPC Renewable Energy (NREL). These funds will primarily address the repayment or prepayment of existing NREL debts, in addition to other corporate expenses.

As of June 2024, NTPC Green Energy has an impressive renewable portfolio, with a combined capacity of 25,671 MW. This includes 2,925 MW in operational projects and 11,771 MW in projects that are contracted or awarded, alongside an additional 10,975 MW in the pipeline. The company's revenue trajectory has shown strong growth, with a 46.82% compound annual growth rate (CAGR), reaching ₹1,962.60 crore in fiscal 2024. Profitability has also surged with a 90.75% CAGR, as profits grew from ₹94.74 crore in fiscal 2022 to ₹344.72 crore in fiscal 2024.

Lead managers for this IPO include IDBI Capital Markets & Securities, HDFC Bank, IIFL Securities, and Nuvama Wealth Management, with KFin Technologies acting as the official registrar for the offering.