NTPC Green Energy, a renewable energy subsidiary of NTPC Ltd, has obtained the Securities and Exchange Board of India (SEBI) approval for its planned initial public offering (IPO), aiming to raise ₹10,000 crore.
Upcoming IPO: NTPC Green Energy
The company, heavily involved in expanding India’s renewable energy sector, plans to allocate these funds for investments in NTPC Renewable Energy Ltd and to address existing debt obligations. Between fiscal 2022 and 2024, NTPC Green Energy achieved a notable revenue increase of 46.82%.
Key Details on NTPC Green Energy’s IPO
NTPC Green Energy stands as the leading public sector enterprise in non-hydro renewable energy, based on capacity and power generation metrics from fiscal 2024. The company submitted its IPO documentation to SEBI on September 18, 2024, and recently received final observation, greenlighting the offering.
As of June 30, 2024, NTPC Green Energy was working with 15 buyers through 37 solar and 9 wind projects. Additionally, it has 31 renewable projects under development across seven states, with a total contracted capacity of 11,771 MW. Currently, the company operates 2,925 MWs across 14 solar and two wind projects.
IPO Structure and Fund Allocation
The IPO will consist solely of new equity shares, each with a face value of ₹10. A portion of the offering will be reserved specifically for employees, who will benefit from a discounted rate through the employee reservation section. Of the ₹10,000 crore raised, ₹7,500 crore is earmarked for investments in NTPC Renewable Energy Limited, repayment or prepayment of existing debts, and general corporate purposes.
Lead Managers and Registrar Information
The IPO is being managed by a consortium of investment banks, including IDBI Capital Markets & Securities Limited, HDFC Bank Limited, IIFL Securities Limited, and Nuvama Wealth Management Limited. KFin Technologies Limited will serve as the registrar.
Financial Performance
From fiscal 2022 to 2024, NTPC Green Energy reported a compound annual growth rate (CAGR) of 90.75% in profit after tax, rising from ₹94.74 crore to ₹344.72 crore. Revenue from operations for the quarter ending June 30, 2024, reached ₹578.44 crore, with a profit after tax of ₹138.61 crore, based on restated figures.
Disclaimer: The above information is based on reports from individual analysts and broking firms. Investors should seek advice from certified professionals before making any financial decisions.
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