NTPC Green Energy Limited (NGEL), a renewable energy subsidiary of NTPC Limited, is set to launch a highly anticipated ₹10,000 crore Initial Public Offering (IPO) aimed at accelerating India’s renewable energy goals. The IPO, which opens for subscription on November 19, 2024, and closes on November 22, represents an ambitious effort by the state-owned entity to increase its green energy footprint. This offering is entirely a fresh issue, marking a crucial step in raising funds to drive projects in solar, wind, and other sustainable energy sources across India.
IPO Details and Structure
The NTPC Green Energy IPO price band is expected to be set between ₹102 and ₹108 per share, with shares to be listed on both the NSE and BSE exchanges. It will follow a book-built issue format, with a significant allocation aimed at institutional investors. The breakdown for allocations is as follows:
- Qualified Institutional Buyers (QIBs): At least 75% of the net issue.
- Non-Institutional Investors (HNIs): Up to 15%.
- Retail Investors: Limited to 10% of the issue.
For retail investors, the minimum lot size is 138 shares, with an initial investment cost of approximately ₹14,904. There are additional allotment benefits for NTPC employees, who will receive a ₹5 per share discount.
Purpose and Allocation of Funds
The proceeds from the IPO will be used to fund a range of renewable energy projects, repay certain debts, and further NTPC Green’s mission to reach an operational capacity of 60 GW by 2032. With a portfolio of 14,696 MW as of June 2024, NTPC Green aims to bolster its capacity through a blend of solar and wind projects, supporting India’s national target of 500 GW of renewable energy capacity by 2030. Additionally, ₹7,500 crore of the raised funds will be invested directly into NTPC Renewable Energy Ltd. to expand its renewable infrastructure and support new greenfield projects.
Projects and Portfolio
NTPC Green’s operational portfolio currently includes solar and wind projects with a total installed capacity of over 3,000 MW across various Indian states. In 2024, the company is executing 31 renewable energy projects spread across seven states, aimed at adding 11,771 MW of capacity. These initiatives are spread across sectors and range from large-scale solar farms to wind energy installations.
Financial Performance and Growth Prospects
NTPC Green Energy has shown strong financial performance, with revenues growing significantly in recent years. From FY2023 to FY2024, revenues rose by over 100%, while profit after tax doubled, reflecting NTPC’s strong positioning in the green energy market. The subsidiary’s assets stand at ₹32,408 crore, demonstrating its ability to manage large-scale projects and remain competitive in India’s fast-evolving renewable energy landscape.
Given NTPC’s extensive experience and established relationships in the energy sector, NTPC Green is well-positioned to capitalize on the growing demand for green energy solutions. This IPO not only raises capital but also signifies NTPC’s transition towards sustainable energy, aiming to be a leader in India’s clean energy future.
For further details, investors can access information on application schedules, allotment dates, and refund timelines on the company’s official IPO prospectus.