In an exciting development for the renewable energy sector, NTPC Green Energy Limited (NGEL) is set to launch an Initial Public Offering (IPO) estimated at ₹10,000 crore in November 2024. This move marks a significant step in NTPC’s commitment to expanding its green energy portfolio and enhancing its role in India’s transition to sustainable energy sources.
Background on NTPC Green Energy
NTPC, India’s largest energy conglomerate, has been at the forefront of the country’s power generation for decades. With a keen focus on renewable energy, NTPC Green Energy was established to lead the charge in solar, wind, and other renewable projects. The company aims to achieve a robust target of 60 GW of renewable energy capacity by 2032, aligning with the national goal of increasing the share of renewables in the energy mix.
Purpose of the IPO
The ₹10,000 crore IPO is expected to fund various initiatives, including:
- Expansion of Renewable Projects: The funds will primarily be directed towards developing new renewable energy projects, enhancing existing facilities, and investing in innovative technologies.
- Debt Reduction: A portion of the proceeds may also be used to reduce existing debt, thereby improving the company’s financial health and operational efficiency.
- Strategic Partnerships: With increased capital, NGEL plans to explore strategic partnerships and joint ventures, fostering collaboration in the renewable energy sector.
Market Outlook
The renewable energy market in India is witnessing rapid growth, driven by government initiatives and increasing investments. The country aims to achieve 500 GW of non-fossil fuel-based capacity by 2030, creating a conducive environment for companies like NTPC Green Energy.
Investor interest in green energy has surged, with many seeking opportunities in companies that align with sustainable practices. This IPO comes at a time when environmental, social, and governance (ESG) investing is gaining momentum globally.
As NTPC Green Energy gears up for its IPO, the upcoming launch is poised to attract significant investor interest. With a clear vision and strategic focus on sustainability, NGEL aims to play a pivotal role in India’s renewable energy landscape. For investors looking to be part of this green revolution, the ₹10,000 crore IPO presents an exciting opportunity to invest in a company dedicated to a sustainable future.
Stay tuned for more updates as NTPC Green Energy prepares for this landmark IPO in November 2024!
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.
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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.
