NTPC Green Energy, the renewable energy arm of the state-owned National Thermal Power Corporation (NTPC), is set to launch its ₹10,000 crore initial public offering (IPO) in the first week of November 2024, according to CNBC-TV18.
The company plans to conduct roadshows in various locations, including Mumbai, London, the United States, and Singapore, to attract potential investors. On September 18, NTPC Green Energy submitted its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) for the IPO, which consists entirely of a new equity issue with no offer for sale component.
CEO Mohit Bhargava emphasized the need for equity funding to support business growth, stating, “We will have to raise equity either through internal accruals or from the markets. So we feel that we will have to go to the market at some point.”
The funds raised from the IPO will be used to repay part of the outstanding loans of NTPC’s subsidiary, NTPC Renewable Energy Ltd (NREL), with the remainder allocated for general corporate purposes.
NTPC Green Energy, classified as a ‘Maharatna’ public sector enterprise, has a renewable energy portfolio that includes solar and wind power assets across more than six states. The company aims to achieve 60 GW of renewable energy capacity by 2032, currently operating with 3.5 GW installed and over 28 GW in development.
IDBI Capital Markets & Securities, HDFC Bank, IIFL Securities, and Nuvama Wealth Management are the book-runners for the public issue, as noted in the DRHP.
