NTPC Green Energy files draft papers for ₹10,000 crore IPO

NTPC Green Energy, the renewable energy subsidiary of NTPC, filed draft papers with the Securities and Exchange Board of India (SEBI) on Wednesday, seeking to raise ₹10,000 crore through an initial public offering (IPO).

According to the draft red herring prospectus (DRHP), the entire IPO will consist of fresh equity share issuance with no offer-for-sale (OFS) component.

The company plans to use ₹7,500 crore of the proceeds to repay or prepay a portion of the outstanding loans of its subsidiary, NTPC Renewable Energy Ltd (NREL), with the remainder allocated for general corporate purposes.

This filing comes amid a booming IPO market in India, with approximately 60 main board companies having launched IPOs this year.

NTPC Green Energy, a 'Maharatna' public sector enterprise, boasts a renewable energy portfolio that includes solar and wind power assets spread across more than six states.

About the company

As of August 2024, the company had an operational capacity of 3,071 MW from solar projects and 100 MW from wind projects.

The NTPC group aims to achieve 60 GW of renewable energy capacity by 2032. Currently, it has 3.5 GW of installed capacity, with over 28 GW under development.

India's renewable energy sector is rapidly expanding, and the country ranks fourth globally in renewable energy capacity, particularly in wind and solar installations, according to a Crisil report cited in the draft papers.

India's installed renewable energy capacity grew from 63 GW in FY12 to 123 GW in FY21, reaching approximately 191 GW by March 2024, including large hydro. Renewable energy now accounts for nearly 43 per cent of the country’s total power generation capacity, with solar energy leading this growth.

The book-running lead managers for the issue are IDBI Capital Markets & Securities, HDFC Bank, IIFL Securities, and Nuvama Wealth Management.